Shares of Brazilian retail group Magazine Luiza fell 6.0% to R$4.55 on Friday, extending losses that have pushed the stock more than 60% below its 52-week high of R$11.55.
The decline follows the company’s report of a net loss of R$50 million in the second quarter of 2026, missing analyst expectations for earnings per share. Magazine Luiza’s financial performance has been constrained by elevated financial expenses amid Brazil’s high benchmark Selic rate, which has kept borrowing costs elevated for the retailer.
Technical indicators also point to continued pressure, with both short- and long-term moving averages aligned in a bearish configuration. The stock’s 52-week low stands at R$3.76, reflecting persistent downside pressure over the past year.
Analysts have maintained a neutral rating on the stock, with several brokerages reiterating sell recommendations. The company’s ongoing struggle to retain online market share has further weighed on investor sentiment, compounding concerns over profitability in a high-interest-rate environment.
