Magazine Luiza U/Adr

Welcome to Mangalu's conference call regarding the quarterly earnings. For those who need simultaneous translation, click on the Interpretation button via the globe icon at the bottom of your screen and choose your preferred language, English and Portuguese. We want to inform you that this event is being recorded and will be made available on the company's IR website at ri.magazineluisa.com.br, where the Earnings release and presentation are already available in Portuguese and English. The link to the presentation in English is also available in the chat. During the presentation, all participants' microphones will be disabled. Then we will start the Q&A session. If you have questions, please click on the Q&A icon at the bottom of your screen and enter your name, company, and question language. Upon being announced, the request to activate your microphone will appear on your screen. You must then activate your microphone to follow up with your question. Questions received in writing will be answered later by the investor relations team. Now I would like to give the floor to Fred Trajano, CEO of Magalu. Fred, please, you may take the floor. Good morning. Thank you very much for attending our earnings conference call on the first quarter of 2026. I'm here again with all of the company's directors who will be available to take your questions at the end of our call.

So let's go to the presentation.

This quarter was very much in line with the previous quarters that we've been presenting, the third, fourth quarter of last year, in the same line as our message and our commitment with profitability and margins and rationale. Noting that interest rates remain high, we had an expectation at the beginning of a more ambitious cycle in terms of interest rates reduction, which did not materialize.