First and foremost, good morning to everyone. I would like to thank you for your interest, for the time you're dedicating here today.

We started a little bit early, but I'm very happy to talk about the good results. This was a positive quarter.

When we see the situation of the retail, this is a quarter where we grew more than 20% in total sales, in same-store sales, which is very important for us, which is very important for the soundness of our business. This is a period especially during the month of June we affected the effect of the football World Cup.

The results could have been better, and I will elaborate a little bit more on this afterwards, and I will talk about the World Cup. I believe that our results are strong in terms of growth with a number of variables that remain.

Number one, a segment that continues growing, and we believe that will continue growing, that will be the retail market in terms of wellness. The company is strongly inserted in this segment.

There is an external things that are helping us, people are more aware about their health, and I believe that this positively impacts our business, but we were internally assertive in terms of products. Our winter collection was new and with technologies, and our customers and the franchisees and the franchises accepted our products.

In terms of replenishment, our operation was much more positive in terms of the chain efficiency, distribution, logistics, better supplied than the same period last year. I believe that this also contributed for our current result.

Our ecosystem is a great competitive advantage that we present. Fred will talk about these initiatives, but our ecosystem strategy of providing experience in sports contributed to our same-store sale performance, which is extremely robust.

Now the refurbishment of stores, once again, of course, our growth has been more than twice in terms of same-store sales. We initiated a program in 2021, and we can see significant results.

The levels of performance of the refurbished stores have changed, the main highlight was growth in terms of net revenue. It was 15.5%, with more participation of our franchises.

The mix has also changed, and therefore this is why our growth was higher in terms of net revenue. Our sell-out was also very good because our own stores and franchise stores, and there was a mismatch in terms of sports sponsorship, but we've seen a very significant growth in our adjusted EBITDA.

The margin is 23.5%, and a highlight would be the SG&A. This is because of a number of cuts from the beginning of the year.

We have a lean company now with a possibility to improve our operational cash. Although we've had logistics expenses because of the fixed cost in logistics, we've had a great result net revenue with good results, a margin of almost 16% that I would like to highlight.

There were impacts in terms of income tax, the income tax rate was higher, but this was anticipated. Omnichannel has also been extremely successful.

We have a great amount of stores that work with ship from store, and we also have pick-up in store, which is growing quarter after quarter. We strongly believe that we are always focused on our customer, we're also focused on our franchise.

Most of our sales today in e-commerce are billed by brick-and-mortar stores, and most of the brick-and-mortar stores are franchises. Our expansion is very similar.

We had seven new stores, eight refurbishments, and we're aligned with maintaining the pace of the last years in terms of openings and remodeled stores. Although the interest rates today are a bit higher, well, we believe that the situation is challenging, but there's great appetite for new stores and remodeling.

What are the highlights of our quarter? This is the portrait of the semester.

The growth has been 18.6%. The second quarter was stronger than Q1.

The accrual of the semester, you can see here, now same-store sales growth was 14%, and our profit indicators are excellent, the adjusted EBITDA 14% and the margin 24%. We are focused on cash generation, and this has grown.

We have combined the growth with good profitability, and which improves our working capital, no risk in terms of product, but gradually we have been able to improve this dynamic. This has enabled us to have good cash generation during this quarter.

The increase of cash generation was significant, and during the semester operating cash flow practically 100 million reais with zero debt. That is very important when you're facing a scenario of high interest rates.

We have cash equivalent as well, but including receivable, we have cash with no debt. Thank you very much.

Now I will hand it over to Patrícia.

Good morning to everyone. Let's start talking about sell-out in detail, we can analyze everything that took place in the quarter.

We've grown almost 21% in terms of sell-out vis-a-vis last year, and 16% in same stores. The growth is higher than what we pointed out on Q1.

There are a number of considerations that justify this growth. Let's talk about expansion.

There were eight new stores in the group, one was an own store, and this increasing the coffee operation of a store in São Paulo in Cidade Jardim, Boa Vista, in the village in Porto Feliz, that is within the gated community of Boa Vista. It I would like to invite people to go there.

This is an open operation. The coffee is extremely well-positioned in front of the store.

I believe that the operation is extremely core core. In terms of remodeling, there were eight remodelings, seven were franchises, and one is owned.

As Tracanella, we have to mention about the growth when we remodel the stores in the network. This has seen a growth of 37%, but when we zoom these operation, the franchises presented 38% of growth, which is significant, and directly proportionally for the franchise is extremely important to remodel the store.

The payback is the payback is quick with this growth. Now regarding all our drivers, the winter collection was extremely strong in the stores.

There were periods of cold days that contributed for the sale during the Brazilian Valentine's Day. This was extremely good.

Of course, replenishment, that is something that we have been improving throughout the years, but it is gaining more momentum in our operation, because the chain as a whole wins when you reduce a rupture in a store with the right product at the right time, and when you reduce rupture, this has been gaining relevance. It's important to talk about e-commerce with a 16% growth during this quarter, with a share of 9.4% of our sell-out.

Omnichannel is extremely important. These are all the stores that are connected to a platform where I can deliver to our customers throughout all Brazil throughout these small DCs, in quotes, and they're scattered throughout Brazil, streamlining the delivery process and satisfying more and more of our customer.

We have practically 94% of our network connected. An additional point, now 39 acting as national sellers.

Now something important, if you are not connected, you have to update the app that was updated at the end of the second quarter. Regarding the process of omnichannel, of ecosystem, it is connected to our entire strategy.

What was relevant throughout the app update, we integrated all our channels. This means that you are going to deliver something during the weekend, let's say, a T-shirt from Track & Field, you want to buy a technical product that is offered by our marketplace, the TF Mall, and you can also include a supplement, like a coffee, your cart will be able to share all the needs and provide comfort to our customer.

Now this is an opportunity that will create more sales. I would also like to talk about the event calendar.

During this calendar, we had 1,300 events in our operations. This was a growth of practically 34% vis-a-vis last year, that also contributed to strong sales.

This increases the traffic of the store. Now all the initiatives regarding the influencers in our platform media and branding, as in we we focus strongly in this, and we've made progress with a ticket growth of 14% vis-a-vis last year and 13.4% in terms of apparel.

Now when we talk about net revenue, we had a growth of 15.5%, and this is explained by, Tracanella mentioned this, what is different from the sell-out. We have a royalty share that we were expecting from a stronger growth, because we saw during Q1 in our net revenue a significant sell-in participation.

When we have a greater sell-in participation in our revenue, what do we expect? We want the franchise to sell out and to receive the royalties.

This is why this explains the first line of 24% because of a more significant performance on Q1. There was a greater sell-in participation share.

During Q1, the share was 2.5% in sell-in, which is relevant, and this is a figure that you see here. Nonetheless, during this quarter, the protagonism is shared with sell-in.

Sell-in is also performing well. The franchise the franchisee has strong share, with sales for Father's Day and sales, and we also accelerated our sell-in almost 22%.

When and when you see this is 13.8%, and this is lower than the franchise operations, and this neutralized the growth of the roy-, and we will see this growing in this magnitude. The events and TF Mall, well, a slowdown 18%.

It's important to explain that during this year that have been very positive, a a participation of our sponsors in event that are more connected to the circuit. Here we have the running circuit, we have the experiences.

Therefore we had new sponsors within our initiatives, but they will remain with us until the end of the year, and what and sometimes you have a mismatch of revenue appropriation. We compared the base to have an idea, and if I were if we would have been the same conditions last year, our revenue would have grown 14%.

This is something important to bear in mind. Now gross profit, as I said, during this quarter, we have the mix of channel and the net revenue, but there we made progress.

When we see our gross margin, that was almost 56.7%, but you said there's a drop of 0.6% because of the mix of channels that I was mentioning. Now when I have greater representativeness in our channel, and here we have a greater share of roy-, here we neutralize this, and this impacts our margin, but this was an important share of almost 15%.

Now gro- and operational expenses, well, we end with 33.3% of our net revenue, a gain of 0.6% in efficiency. If we see these two entries, we will see sales expenses that imp- that increased 1.3%, and it's important to remember that when we analyze Q2 of last year, the base was more atypical, atypical.

The investment in marketing was slower, and this normalized during Q3 of 2025, during Q3 this year will be more comparable for explanation. Q1 and Q2 last year was growing 30%, 34% vis-a-vis 2024, here you can balance, and you can offset things when we see the investments in media.

As a matter of fact, we will see a normal situation on 2025 and the impacts during Q1 and Q2 this year. On the other side, we would like to highlight that all the SG&A that are diluted in 1.6 percentage points, this result reflects all the adjustments that were implemented at the end of Q1.

Even more important, we can dilute this, significantly placing all the initiatives during in our DC to face the growth of last year. Although when I see the impact of one of Q1 and I transfer it throughout the year, I can offset and deliver an expressive dilution.

Regarding expenses, this is an important message, and this is regarding all the dynamics here in order to result in the results that we see here. When we talk our EBITDA, our EBITDA is almost 66% and growing practically 16% vis-a-vis last year and a margin slightly above 0.1 from 23.5%, which is something extremely robust.

What explains this? The dilution of 0.6 percentage points of gross margins because of the slowdown regarding the net revenue, and we offset a little bit even a little bit more in expenses, we gain margin.

Now when we see the semester, we can see basically 127 million BRL. This is a growth of 14% vis-a-vis last year.

This is a margin of 24%. This is a very significant figure.

When we talk about net revenue, here almost 45 million BRL, net margin of almost 16%. Now when we compare it to last year, it's important to explain a slowdown of 1.1 percentage point regarding last year because there was an in- it was a significant impact by the income tax rate, and this impacted 0.8% of our net revenue.

Why? Throughout the last years, there were a number of operations that were calculated profit, and as this was eliminated, we've lost some benefits, and we're impacted.

It's important to see that the actual rate of income tax, it's around 22% last year, if we see the same period it was 19%. This impact is reflected on our last entry.

In terms of cash position, well, this we had an extraordinary cash position, 96% of growth in our operating cash flow. This is of course because of great sales, but here we have to see how we've improved the average day of inventory.

We've dropped our average period almost 16 days. Now our investments are almost 15 millions million, similar to last year.

Our in- investments are focused on brick-and-mortar stores and more stores and remodeling and also technology, especially in the app that we just mentioned. We also there was more financial disbursement.

When I see the JCP, that is our distribution, that was it was excellent when compared to last year. We and are here with 145 million of cash generation, and we continue with no debt and a highly prepared balanced which is prepared, what which we expect by the end of the year.

Now, Fred, let's talk about TFSports? TFSports, well,

good morning to everyone. I thank all of you for being here.

It is excellent to see these results and at the same time to know that within the results there is a strong platform that has been built. I could talk a little bit more about this, and simultaneously we can deliver results, and in our view, we can build something differentiated.

This is when we compare to a simple retail operation to talk about our platform and our TFSport app. We have over 1.4 million users.

This is almost a growth of 36% in terms of number of users, but it's important to state that this growth is aligned with a similar figure of growth of events that we performed. We carried out 1,300 events during Q2.

This is a brand that has had a record number of events, and also the number of registered growing 34%. It's not only the effort of simple users, and this is reflected in the chain of events and services of our app.

Here we're able to deliver almost 35% more users participating in the events. The users that buy products and participate in the event, well, this increases the share of the closet of the consumer, say they have more Track & Field apparel within their closet, and this way we can convert this consumer to become a consumer that connects with the brand in a differentiated way.

Also when we see trainers, this initiative is flat, it's flat on purpose. We still have not had a more structured rollout of our trainer platform because during the last semester we focused more on the integration of the service channel with the product channel.

TF Mall and TF Sell, TFC was integrated, and we're integrating this with a number of brands, we focused on this. During the next slide, we will show you how this initiative has been very successful.

Now here, we've evolved regarding TFC sales. Here we see a growth of 35% amongst people that buy food and supplements within our network.

We are learning a lot about this market, and I believe that TFC is a new market for Track & Field. We sell a lot through our app in terms of food and supplements.

The TF Mall that is our marketplace with brand curatorship, now integrated with the app, this is a GMV that grew 37%, our integration initiative has been very important. These figures are small for the size of the company, but anything that delivers what we're delivering here and year on year shows that this presents a great differential, and we are approached by premium brands to be part of our channel.

We'll focus on what kind of product can complement what we already have. These are initiatives from this platform.

Our delivery pace, our innovation pace and the experience of our platform is excellent, and our NPS is 83% in the company by and large, this is very high. We measure this in a granulary way.

We have NPS from each one of the assets of the TFSport, e-commerce store operation, TFC, and we improve the consumer's experience, and we're focusing on wellness. We want to be a one-stop shop for wellness in Brazil, and we're highly satisfied with it.

Regarding the new businesses, we are opening our fourth new store in Portugal. We're highly satisfied in being able to replicate this operation in Portugal.

Portugal, this is a very timid operation, but we see great potential in Portugal. This is it.

We've had good results, we've been able to deliver new solutions, we've seen innovation in the company, and we're very happy with the situation despite the adversities that we face in the market as a whole.

Congratulations for your results. Due to the frailty of the market for the consumer by and large, can you talk about the competition and the expectations for the rest of the year, and where you see strong performance and areas of weak performance?

As you continue remodeling stores, how do these remodelings compare to past remodelings in terms of the increase of sales and same-store sales?

I can start. Maybe Patrícia can add on.

Number one, well, good morning. It's excellent to have you once again in one of our video conference call.

Regarding competition, our view is that that the market that we participate, that is the wellness market, grows at a pace that can absorb newcomers. We do not see any movements that are new in terms of competition that can affect our businesses.

We are strongly focused on our operation, on the product, on the client experience. Of course, we see, we pay attention to what the competition is doing, but the market grows at a pace that allows us that al- that allows the entry of new competitors or already com- competitors that were already in the market.

I see no major differences from what we've seen in the past. Here this is a continuity of past periods.

Fred, would you

I was just going to say that our current structure that connects to our customers in different ways protects, and here we have the loyalty of our customer base, especially because of the innovation with our product. They're more connected to our brand when they participate in one of our races, because this is a differentiated experience, or when they buy a product, or they eat in one of our TFCs.

I believe that we are doing something that creates loyal customers, and this is important. This is why we're a little bit better protected against the competition by and large.

Regarding the remodeling of stores, we have not seen significant changes regarding the first store that was remodeled in 2021, this new layout with improvements which changes from store to store, and we are very happy with the results that we've seen. When we compare the beginning of this program of the first stores that were remodeled and the stores that are being remodeled, no, the results have been very similar.

We've seen remodeling of recent stores with significant results like stores in Curitiba, in the first two malls. We reopened our store in the Morumbi shopping mall that is significant in terms of growth, Eldorado, Fortaleza shopping malls.

These are stores that are performing above the pre-remodeling period with consistent results now. The financial return here is significant, but we work with a strategy to protect the brand, the remodeling has two roles: to provide better financial results and also to strengthen the brand with a more modern store.

Where are we better, where are we not better? Where are we worse or weaker?

What can I say? Number one, we have not seen major variations amongst categories during the first semester.

All performed well.

I would just like to highlight the growth of the kids line, which is the line that we strongly bet on, we've improved the product, and it's improving consistently. The mini collections, we've performed well, we have lots of collection, and we've been very assertive with these mini collections in terms of sales.

The men's line, the women's line has gained share. This has been positive by and large.

I believe that there has been no problems in terms of category. We launched new products.

These are products with new technologies, with new fabrics. We just launched a new sneaker.

It's a Track & Field sneaker that is essential, that you can use when you go to the gym, and you can also wear it to go out for the rest of the day, and the price is highly accessible. We've tried to launch new products, and this is a trend that we will see throughout the rest of the year.

I don't know if Fred or Patrícia would like to add something. What I was going to mention here was regarding what didn't work.

In an environment where you have World Cup, lots of holidays, high interest rates, our projections are not as accurate. There are ones with more rupture, ones with less rupture, but there's nothing that is different from what we do on our day-by-day.

A year like this is quite demanding, and we're just focused, but this has been a challenging year because of everything that has happened, and we are focused and continuing to deliver results. We're always in uncharted waters, but we're always steering well our ship.

Okay? Thank you very much for your answers.

Good morning. Thank you for taking our questions, and congratulations for your surprising and significant results.

On my side, I would like you to elaborate what you see in terms of expenses. Here we saw lots of marketing investments, what do you see in the future, if the idea is to continue investing or are you going to change?

The G&A, there was a significant cut at the end of Q1, do you see space to affect one entry to be more effective? I would like to see what you think.

It's good to know that you will open more stores in Portugal. If you can give us an update regarding your international expansion speed, I know you have a franchise in Portugal.

I don't know if there is something new regarding this new stores in other countries.

Can I start talking about the expenses, and I think Fred will talk about Portugal. Expenses, we want to continue very lean in terms of expenses, in company structure.

We performed a number of adjustments during Q1, and this was something that was necessary, and all of this helped us to improve the operational cash flow during Q2. The company is lean, we have controlled our headcount, we've grown, and we're trying to gain efficiency using the available technologies to avoid repetitive work.

We're in the beginning of this journey, there are a lot of opportunities ahead of us. I don't know if we will be able to deliver something regarding something extremely relevant when we compare to what we're doing right now, but our company is prepared to be a lean company.

In terms of marketing, we're not changing our strategy. We are focused on our base.

Patrícia stated this that our base will be compared in terms of marketing investments during the second semester, but we're pursuing efficiency with AI. We will have less costs with production, and all of this will be scalable when we think about marketing pieces.

We are not changing our strategy. We will be able to compare the base during the second semester.

Now regarding expenses No, what you said is perfect, I have no comments regarding this. Now I would like to thank the entire Track & Field team, because when we carry out these actions, we can't carry out these actions unilaterally.

We count with the help of everyone. We have a lot of people engaged in these cuts initiatives and in pursuing efficiency.

There is an internal movement. People are thinking differently to bring efficiency in a day-by-day and especially within the management areas.

It's something difficult to do because you have to change your mindset, and you have to think differently. I see the entire team strongly engaged, everybody that is responsible for budget, they're concerned and engaged with this result.

I just wanted to take this opportunity to thank our team.

I would like to make another comment, which is interesting. People are talking about the impact of AI in companies, and in our mind, what do we want?

We want to deliver the same operation with spending more and gaining efficiency, not only with AI, but also machine learning. We are working not only not to inform people or educating people internally so they can become more comfortable or more aware of technology.

We want the company to grow. If the company can continue growing at the pace that we are growing, there's no need to increase the SG&A.

I believe that this is positive. I don't know if we will be able to do this, but I believe that the entire company can start analyzing this type of effects and to bring intelligence to repetitive tasks, and of course we need natural intelligence as well.

If we're able to do this, this will be extremely positive for the company, of course, maintaining the organizational structure.

Now regarding Portugal. We are extremely excited with the results.

This is an operation is presenting good results not only for us, but for our franchisees. We are going to open two stores, one in Chiado neighborhood, that is a very central neighborhood in Lisbon.

Yes, we're excited. We are also analyzing other types of possibilities in other countries, but our philosophy is to know people and to know our potential franchisees.

Now we're prospecting potential new franchisees in other countries, and I believe that we are reassured. This could be a good avenue of growth for us, and a strategic avenue of growth.

Thank you very much, and congratulations for your results.

Good morning, Tracanella, Fred, Patrícia. Number one would be the inventory.

Is there a level of inventory days that you want to achieve by the end of the day? Is there a level where you feel comfortable, and this should not impact negatively the day of suppliers and rupture in stores?

Now when we see same-store sales, how could we think about same-store sales performance when you compare it to own stores and price and volume? You talked about a base of comparison during the second semester.

We are in comparable bases of marketing, logistic expenses, but when we see the top line, especially during Q3 with sell-in revenue was extremely significant, I would like to know how do you see this comparison base when you think about top of line?

Stock days, last year we ended with an average inventory day better than the past years. We do not have a target, we do have an objective.

The main objective in our mind has been the following: to reduce rupture. When we see the inventory, we have to guarantee an inventory to supply my entire network in an additional to a network that delivers to these maturing stores and the stores that will still open.

When this volume is seen in a first portrait, it has an impact. We cannot say I'm going to maintain 15 days by the end of the year.

Of course, we see the period of pre-pandemic period, it could be close to what we would like to achieve today. I can't tell you we're going to end the year this year.

We just want to avoid ruptures, but with all of our initiatives last year, we improved production, that was a production cell. As there is a need of production for a store, and it took you a long time to react to this need, these cells were able to supply these products, and with this we diminish pressure.

We have the preorder from our franchisees with more sensitive products that would be water sports, when we think about this category that's a bit more sensitive, we have the preorder period. This was very assertive from our side.

What else? We've analyzed our stock very carefully with nothing drastic, because there is no need for drastic changes.

Our main objective is to have our products available to maintain the client's experience with good results for our franchisees. Demand forecast, operation, outlets, there are things that can improve this.

We do not want to put at risk our brand, the customer experience, or a franchisee. This is going to be something that will be done slowly.

We do not have to do anything fastly, and this is a long-term view, not a short-term view. We will not have more markdowns, this is bad for the brand, this is bad for the business, because then what are you doing?

Your client is getting used to always buying during sales periods, we don't want that. Own stores and franchise and same-store sales, there is something that we will continue seeing.

The own stores are mature stores with high sales volume, when you see the average sale of an own store and a franchise, there is a difference. In the terms of franchises, you have the ramp-up period, this is where the difference lies.

When you see own stores, these are mature stores with a sales volume per square meter which is high. Now in franchises, there's also the effects of the ramp-up, and these are stores that need to mature.

Sometimes it takes more or less two years, and we have a good franchisee operation, we have an excellent franchisee base, which also explains the good performance.

I will talk about expenses and comparable bases. Marketing, we have the first semester and second semester.

We will have more comparable bases. The logistic is more concentrated at the end of Q3, but it will be more comparable during Q4, that is the period where we started working with the second shift in logistics.

We have the DC working practically 24 hours with two shifts, and this improved our replenishment, and this is one of the main responsible points to improved our replenishment. Now you asked about the significant representativity we had last year, we can't even believe how relevant this was during the quarter.

The sell-in was, I think it was 5 percentage points, the expectation. Let's say that we will embark highly optimistic during Q3 with a marvelous summer collection.

We expect a highly attractive collection, and we want our franchisees to be highly engaged in sales. Our simulations predict something similar to the behavior last year.

We're improving the productive chain and replenishment. We can receive earlier the collections, and of course the franchisee will receive even earlier these products.

The sell-out will be similar to last year. I don't know if we will see more net revenue or something significantly higher.

I would like to strengthen one point. Although with the World Cup effect, that was the end of June, the World Cup impacted the retail market by and large.

There was an effect in July that impacted because the flow of customers diminished because lots of people are highly engaged with the World Cup. The World Cup, we will only have one in four years.

I believe that July was the month that was mostly impacted. Also the end of June, but specially the month of July, all of this because of the World Cup.

Once again, I would like to thank all of you for being interested in our company, to thank the team, Fred, Patrícia, the IR team, and everyone that organized this call. I would like to thank the team for this exceptional results, all our partners, our franchisees, our investors, suppliers.

We're extremely happy and very reassured for the second semester. We wish you a great day.

The Track & Field video conference call has come to an end. We thank you for your participation and have an excellent day.

Thank you very much.