Guararapes Confecções S A : 4Q22 Earnings Release

BRANDS PLATFORM

• Riachuelo: fashion and lifestyle, with 100% Brazilian DNA. Full of personality and a benchmark in the women's fashion retail sector, Riachuelo dresses dreams, transforms and empowers Brazilian women, facilitating access to fashion and taking it to the consumer with quality, variety, and fair value;
• Casa Riachuelo: from an omnichannel experience and an attractive product mix, Casa Riachuelo offers customers the latest trends in home decor and products to dress the Brazilian home, in an elegant environment and offering a differentiated service, focused on customizing the shopping experience and making it even more pleasant;
• Carter's: presents strong synergy with Riachuelo's value proposition and reinforces the Company's positioning in the baby and early childhood clothing segment. All Carter's stores are born Omni and integrated with our ecosystem;
• FANLAB: a new business front dedicated to the geek audience, which operates independently both in the physical and digital environments. FANLAB was already born within an omnichannel and integrated platform with solutions for fashion, lifestyle, and financial services, reinforcing the strategy of the Company's ecosystem evolution.

PHYSICAL CHANNELS

The Company has 396 stores strategically distributed in all regions of Brazil, of which 333 are Riachuelo stores, 48 Carter's stand- alone stores, 12 Casa Riachuelo stand-alone stores and 3 FANLAB stores, in addition to 13 Casa Riachuelo stores and 2 Carter's stores in the store-in-store model.

In line with the Company's expansion strategy, in 2022, 35 new stores were opened, including:

• 4 Casa Riachuelo stores; 2 stand-alone and 2 store-in-store;
• 3 FANLAB stores.

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DIGITAL CHANNELS

At the end of 4Q22, the Company exceeded the mark of 21 million active customers in its ecosystem, a 23% increase compared to 4Q21, and its customer base remains omnichannel: 53% of customers who purchased through digital means are also physical store customers.

The penetration of this customer profile reached 15% of total sales in 4Q22, with emphasis on the strength of omnichannel customers, who have a purchase frequency 2.4 times higher than other customers. Digital channels accounted for 9% of total sales, reflecting the Company's strategy in which customers choose the channel they have the greatest affinity with at every moment of the purchase. As a result, we recorded an operational improvement in the digital channels, which already showed a positive contribution margin in

4Q22.

Purchases originating from Riachuelo app accounted for 43% of online sales made during the quarter, following a high share, which also contributes to greater purchase recurrence.

Complementing the Company's omnichannel strategy, the Marketplace reinforces the lifestyle concept based on fashion and product curation, expanding categories and occasions of use for customers from 788 thousand offers from more than 380 sellers, totaling 2.2 million SKUs available for sale.

At the end of 4Q22, the marketplace's share in digital channels increased to 17.4%. An analysis of consumers' profile shows that 82% of our customers who bought in the marketplace had never purchased through this channel before and 42% of new customers in the marketplace are also new to the ecosystem, thus demonstrating the success of the strategy. The penetration of Riachuelo card in purchases made in the marketplace reached 46% in 4Q22, reinforcing the integration of the ecosystem.

FIDELITY & RELATIONSHIP

Xodó, the Riachuelo card loyalty program whose pilot phase had its first stage launched in September 2022, reflects the purpose of the Company to connect desires to accomplishments. In order to strengthen the bond with its clients, the Company now offers a series of benefits in purchases, in addition to an exclusive relationship platform. All this for free, with simple and attractive participation mechanics.

The highlighted advantages include the offer of cashback for use in purchases in all physical and digital channels, as well as for other expenses incurred using Riachuelo cards.

Due to the results presented, we will continue with a second stage of tests throughout 2023. The invited customers demonstrated, through a survey, good receptivity and satisfaction with the experience of participating in the program.

From the consumption behavior stance, participants had a 32% average increase in their frequency and 29% in spending within Riachuelo, exceeding projected expectations.

The program will help us know about our customers' habits even further, identify purchase propensity triggers, and scale more personalized journeys.

Our CRM continues to evolve as a relationship and incentive channel, resulting in increased recurrence of our customers. We carried out more than a thousand campaigns per month, with different approaches and segmentations through push, email, SMS, call center and directly through the stores POS. With a wide range of channels and offers, we are able to offer different experiences to each of our customers.

In 2022, we implemented a new platform in the customer service area, which now is related to CRM Marketing, to generate more personalized journeys and further strengthen our relationship with customers.

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FINANCIAL SERVICES

Midway Financeira is an integrated financial products and services platform connected with retail, and is a fundamental part of our ecosystem. With the offer of autonomy and facilities to the user, the Company started to have an ever-broader relationship with its customers, going beyond the mere offer of card and personal loans at stores, by also offering products and services in digital channels, with maximum integration with the retail sector. The omnichannel card-holding customer has a purchase frequency ~3 times higher than other customers.

At the end of 4Q22, the Midway app had 2.6 million open digital accounts. Of these, we have approximately 1 million customers with monthly access to carry out activities such as transfer via PIX, payment of bank slips, debt renegotiation and cell phone recharges, being an important channel for relationship, cross-selling and revenue generation.

GUARARAPES FACTORY

Guararapes produced 39.0 million pieces in 2022, earning R$1.8 billion for Riachuelo in that period. The share of own products reached

45% of the total apparel categories sales in 2022, which ensures agility, reactivity, in addition to better social and environmental control of the chain.

INTEGRATED DISTRIBUTION AND LOGISTICS

Supply of stores and delivery to customers

As a result of the improvements made to our commercial systems and logistical processes, we had a reduction in store disruptions based on a more assertive initial allocation according to store clustering, and a more efficient replacement, with a greater balance of inventory assortments and volumes that are in the Distribution Centers - CD, which led to a reduction in the average supply period for the stores.

We continue with our priority of making faster deliveries to our customers. As part of actions taken to improve the level of service offered, we entered into partnerships with startups in São Paulo and Rio de Janeiro, with a focus on increasing efficiency in the last mile and reducing the delivery time for the end customer.

Thus, the number of orders delivered on the next day across the country increased 86% in 4Q22 vs. 4Q21. The average delivery time for orders shipped from CDs throughout Brazil reduced from 3.5 days to 2.9 days. Considering the city of São Paulo and the Southeast region, the average delivery time was one day and two days in the same period, respectively.

In addition to deliveries, our "Store Pick-up" and "Quick Pick-up" solutions are available in 100% of the stores, with the Quick Pick-up deadline of up to 4 hours, integrated with lockers for the "Click and Pick-up" functionality. In 4Q22, these solutions represented 25% of digital channel sales, versus 18% in 4Q21.

Operating efficiency

Following our focus on gaining efficiency in digital channels, we presented a 10% reduction in the cost per delivery of orders shipped by the store in 4Q22 vs. 4Q21. In addition, the average cost per total order decreased by 28% and the percentage of net freight cost was down 3 p.p. vs. 4Q21.

As part of our goal of delivering end-to-end conscious fashion to our consumers, 30% to 40% of stores in São Paulo are already supplied with an electric fleet. Additionally, 100% of the e-commercedeliveries that leave Guarulhos CD to the city of Guarulhos are carried out with an electric fleet, in addition to other areas in the city of São Paulo.

Integrated mobility focused on the customer experience

The new stores are already born with a payment structure focused on self-checkout + mobile POS, in which self-checkoutreaches around 50%.

• Self-Checkout: implementation of self-service totems for 77 stores in December 2022, bringing a relevant operating efficiency gain;
• Mobile POS: tool that enables completion of purchases outside traditional checkouts, providing greater agility, convenience, and flexibility to consumers, reducing the number of fixed POSs and generating a more fluid journey for customers. Available in 100% of stores.

Still on the omni journey, our e-storesolution - an infinite shelf platform with online and offline stock 100% integrated with physical stores - represents 9% of orders from digital channels in 4Q22. In 2022, we followed the maturation of this solution, where more than 300,000 orders were delivered to customers from the infinite shelf.

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