Casas Bahia Loss: Q2 Net Loss R$10.1bn, EY Doubts
Casas Bahia posted a R$10.1 billion (~US$1.94 billion) net loss in Q2 2026, mostly from non-cash charges, and EY refused to sign off on the financials. The retailer is weighing a new restructuring as it closes 298 stores and cuts 1,900 jobs. The post Casas Bahia Loss: Q2 Net Loss R$10.1bn, EY Doubts appeared first on The Rio Times .
Brazilian retailer Casas Bahia reported a massive R$10.1 billion (~US$1.94 billion) net loss in Q2 2026, with auditors EY withholding their opinion due to concerns about the company's future viability. The loss was an 18-fold increase from the R$555 million (~US$107 million) loss in the same quarter last year. Revenue grew by 1.6% to R$6.977 billion (~US$1.34 billion), but adjusted EBITDA fell 9.4% to R$518 million (~US$99 million), and gross profit margin slipped from 8.3% to 7.4%.
EY highlighted issues like negative net working capital, negative shareholders' equity, and a R$11.2 billion (~US$2.15 billion) loss in the first half of 2026. CEO Renato Horta Franklin and CFO Elcio Mitsuhiro Ito are leading a transformative plan that includes store closures, layoffs, and restructuring efforts, but auditors cited material uncertainty, questioning the company's ability to continue as a going concern.
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