A good day to all of you. Thank you all for your time.

We're very satisfied with a positive result, and I would like to congratulate the entire team of Track & Field and the franchisees. This is a result that, of course, has a very difficult comparison base.

Growth on a quarter where in '25 we had grown 25%, a sell-out growth now was an expressive growth of 16.4%, and it's worthwhile highlighting that growth of sales. I believe that this growth, of course, has a great deal to do with a context that continues to be very positive, favorable to the business that we work in, wellness, where people tend to be more engaged, they want to be healthier, they're losing weight.

This is a favorable scenario, but the results also refer to other adjustments that we have carried out from the marketing viewpoint. We have a winter collection that has had very good acceptance on the part of the customers, the digital sales growing considerably as well.

We have a program for the remodeling of stores bringing about expressive results. Therefore, we have a combination of a scenario that is favorable with winds in our favor and a strategy for the ecosystem that will help us to explain our figures.

It's a number of events for the brand and much more. I will begin here with the highlights.

I have just mentioned the growth of sell-out, same-store sales, and the growth of the renovated stores, which was somewhat more than twice the speed of same-store sales for the network, something we truly believe in. We already have 33 stores that have been renovated, and for this period of the year, that is quite expressive as a figure.

Now, net revenue grew at a pace faster than the sell-out. Patricia will comment on this further ahead.

We had an important effect of sell-in that increased the pace. Of course, this points to the success of the collection that was launched in March.

I will repeat today that what we see today will ensure the loyalty going forward in sell-in. The growth was almost 30% quarter-on-quarter, also pointing to an important sell-out for the second quarter now.

We consider that the first half of the year will be quite positive. The company continues to grow in terms of profitability.

There is pressure, of course, on our margins because of our mix. We have more sell-in, and the margins are pressured downward because of this.

In the second quarter, we should be able to invert this, have a positive pressure, a positive trend. Despite all of this, we were able to grow almost 3% once again on a very difficult base of comparison.

Net income once again with a growth of 6.3% and some fixed expenses of comparison that we will refer to further ahead. In the first quarter of last year, we ended up increasing the pace in the second quarter.

Our investments in marketing were comparable to that of last quarters, but we had a difficult base of comparison because of the first quarter in '25. Throughout 2025, the company made significant adjustments in the company, which enabled us to eliminate any production or logistics bottleneck.

We invested in the field of operations. This year, we increased the head count in logistics and distribution.

We have implemented a second shift in logistics back in November of '25. This increased administrative expenses, some line items are difficult to compare with last year.

Regarding expenses, we have anticipated the challenges of the scenario, the political scenario and other complicated challenges. There are more challenges than in 2025.

We tried to anticipate this working with cuts in terms of head count and general expenses. Of course, this will enable the company to operate in a more lean and a lighter way in the second quarter.

All of this should aid and abet the results of the year. This was a very ascertain move that we begin to see now in the second quarter.

We continue on with a robust operation. We have 66% of the sales coming from e-commerce, a very robust sector, and we include the franchises in this figure.

We also have evolution. We have reached almost 400 stores operating in that modality.

From the viewpoint of expansion, we inaugurated six stores. We have 441 stores in the network and three renovated franchises.

What is important for you is that this year, we have 38 stores contracted with a contract signed or already undergoing works, finalizing the project. We have 38 stores already for renovation.

We have a very high interest rate, but despite this, we have a good pipeline of stores looking ahead. Customers that truly believe in the business and no sign of a slowdown when it comes to an organic expansion.

The pace of last year has practically been guaranteed. The same holds true for remodeling.

We have 35 stores scheduled now for this period of the year. It leads me to believe that we're doing very well in terms of expansions.

Lastly, I would like to highlight something that is not even in the slide, our operating cash generation. We're speaking of a quarter where we had 51 million of cash generation.

This is important because we're speaking of the first quarter. For the retail segment, it's a greater challenge to generate cash.

We have to have great discipline to work with all of the variables to ensure growth. Of course, we have expenses, working capital, and we were able to achieve good cash generation.

These are the main highlights that I wanted to share with you. I will now give the floor to Patricia.

Thank you, Track. Welcome, everybody.

We're going to begin speaking about the sell-out. In this first quarter, we recorded almost 443 million BRL, expressive growth, because in the quarter last year, we were growing 34%, as mentioned by Tracanella.

Same-store sales with robust growth, 12.1% vis-à-vis last year. Here, I highlight the renovated stores.

The stores renovated in the network last year had a growth of 26.5%. If we zoom in to our own renovated stores, this figure was of 35.6% in own stores and 20.9 in franchises.

Very well, we have the e-commerce growing almost 29% vis-à-vis the first quarter '25, a representativity of 1.2 percentage points more year-on-year, gaining share in our network and allowing the customer to feel ever more comfortable. I'll speak about omnichannel now.

We have 66% of deliveries this quarter being delivered through our brick-and-mortar stores. Of course, this helps, optimizes our working capital and also enhances customer experience.

Let's go on to our net revenue with a growth of 18%. All the growth we had in sell-out, of course, additionally to expressive growth of our sell-in, which is the sale of merchandise to our franchisees, with a growth of almost 30%.

It has gained representativity of 2.5 percentage points. As Tracanella said, the sell-in today is the royalty for the future.

When we look at the portrait of the year, our sell-in and the royalty operation, if added, will be very similar to our sell-out. It's interesting to follow up on this.

Now, in the TrackSports, we have reduction of almost 7%. What's the reason for this?

I'll speak about the PERSE. PERSE was a benefit of federal taxes for event industries.

It ended in the second quarter last year. Since then, when we compare results, it causes this pressure, this impacts our net revenue.

This year, we no longer have it. We have neutralized this effect.

If we take away this effect for our line of event, we have a growth of almost 6% vis-à-vis last year. Very well, gross profit.

In this next slide, our gross profit grew almost 16% vis-à-vis last year, with a margin reaching almost 60% of net revenue with a drop of 1.2 percentage points. This is due to the channel mix for sell-in.

If I have a greater share of sell-in in my net revenue, this, of course, will pressure gross margin. It's our channel with the lowest margin.

This will be offset going forward, but we have to take it into account. It will also impact our EBITDA.

By neutralizing these effects, if I had the same behavior of net revenue last year, what would happen with gross profit? It would be aligned with 2025.

It gives you a visibility that channel by channel, when we zoom in to our business, they're all aligned or have small gains. Let's speak about our operating expenses.

Once again, we show you significant discipline. This is part of the DNA of our company to strengthen, to carefully manage all of the line items, whether they are fixed or variable.

This is something we do intensely in-house. This quarter is a proof of that.

Tracanella, at the beginning, said that the investments in marketing, if we look at last year, the investments increased the pace in the third quarter. We had robust investments in an organic way and required less investments.

In the third quarter, we increased the pace a bit, this will cause pressure on expenses with sales. General and administrative expenses, despite all of the initiatives we put in place to support the growth last year in logistics, increasing head count, enhancing the operation, even with that weight in the administrative expenses, we were able to neutralize the effect of increase of expenses in sales.

They were aligned with last year. 35.3 was our percentage of operational expenses.

Let's speak about our adjusted EBITDA. We grew 12.6%, reaching almost 62 million BRL, that growth of 3% vis-à-vis last year.

A marvelous result, operating result. When we compare the EBITDA margin, there's a pressure of 1.2 percentage points.

The expenses are in line with last year, and here, we're speaking of this weight that comes from an unfavorable mix of business this quarter, without taking into account that our margin would be the same of last year. Adjusted net income, it grew 6.3%, totaling 41.5 million BRL.

We have the retraction of 1.8 percentage point: the 1.2 in the EBITDA, 0.4 from financial results, and 0.2 of depreciation to give you greater clarity. We're in line with what we achieved last year because of a shareholder equity that is more robust.

This contributed to having the same representativity that we had last year. Cash position, and here, we summarize the financial health we're referring to.

We generated 51.4 BRL in operating cash, 11 million in investments, basically for store renovations, store expansion, enhancement of TFSports platform to continue on with all of the initiatives of our ecosystem. In financing activities, a reduction of almost 50%.

Why? Because last year, we were working with share buyback.

Since then, we have eliminated that, we had that reduction of 47.1%, contributing to our final position of 63.6 million reais. Now, considering our credit cards and cash equivalent, we have 63.6 million in total liquidity.

A structure without indebtedness, this is how we continue, and we can finance all of the initiatives with our own resources. Fred, will you speak about TFSports?

Good day, everybody. Thank you for attending our earnings results call.

Now, in this next slide, we will show you how we have been able to build that platform, that ecosystem in a carriere way. We grow 30—we grew, excuse me, 37.6% of users year-on-year.

We had a very significant adoption of users in the platform. Since last month, the platform is also important with the digitization part.

We can carry out sales through the tech mall, or we can sell through events. We have a slight reduction in terms of coaches because of the registration we carried out.

This is simply something structural. More than 1,000 events held in the quarter, a growth of 27.8%, exponential growth because of all of the initiatives that we have.

The experience and all of that, and all of this through our platform. 130,000 participants participating in our events, with a growth of 21.8%.

People are highly connected to sports through the initiatives in our platform, and we ever more observe the importance of physical activity, but also social connection. We have a growth in net revenue, as you can see, that is quite interesting.

The GMV of the mall, 117% growth year-on-year. Several products relating to physical activity are being sold with very interesting brands, and we're quite enthusiastic with this.

The TFC Mall is also part of the application and connected. Now to speak about our experimentation, we have 16 stores opened with TFC, two are presently being opened.

We're working of wellness, also healthy food at the cafes, all of this connected through our digital omnichannel with deliveries through the marketplace. TFC with a growth of 54% year-on-year, a truly extremely good 40% more customer service in the stores.

We recently connected to platforms like iFood, 99, and Rappi because of the attraction we have with the delivery for healthy food. All of Brazil use our stores as small distribution centers, and we have connected to partner brands that are selling in TFC.

This is a very positive initiative. The NPS of the company, of course, we're centered on the consumer.

Now, the NPS should be above 90%, but in TFC, it's 81. Our consumer receives quality, receives experience, differentiated service, fashion, technology, all of the attributes of the brand.

This is a company with an ever-growing addressable market. That is all.

Thank you very much. I think we're now ready for the Q&A section.

Good morning, everybody. Thank you for taking our questions, and congratulations for very strong results.

We have two topics we would like to hear more about. The renovations.

You maintained the goal of 70% with the new concept until the end of the year. Which is your relationship with the franchises, the situation to carry out renovation, and how you assess the pace of renovations?

Can you speed it up or not? A second topic, speaking about Europe, you inaugurated the third store in Portugal and you spoke about the e-commerce that would service the region.

If we could hear an update on your vision for this initiative and assortment in the region, if it is similar or different, how you're managing this adaptation. That's all.

Thank you very much.

Let me begin then, and then Patricia can add to this. Thank you for the question, Laryssa.

Regarding the renovations, we're highly engaged with the renovations. We have seen significant demand for new projects.

Of course, the priority are the more relevant stores in terms of sales. Our goal is to renovate the entire network.

Last year, we got to 60%, and this year, we have 40 stores that should enter this process. We already have 33 stores that have been scheduled with a project.

Certainly, we will attain that figure of 40 stores or overcome it. For the franchisees, this is an important process not only financially because it brings back a good return for the business and increase in sales, but also because of the protection of the brand.

It allows the franchisee to maintain the store updated with a more attractive environment for the customer with greater efficiency. There's several benefits therefore, and I think the franchisees see this.

In terms of international expansion, we're quite satisfied with the results. We have a highly engaged franchisee in Portugal.

We opened a third store at the beginning of the year, and we're about to inaugurate two more stores in Portugal, two in Lisbon. We're quite satisfied with the results.

The strategy is to take the entire ecosystem there, the model with franchises and the organization of events. The brand has been very active in terms of event organization in Portugal, and we have been successful.

Regarding the e-commerce, we're beginning our relationship with a multicurrency, multilanguage site. We want to begin to understand the attraction of the brand in Europe, to carry out shipping based in Portugal where we are already operating.

Of course, this is still very incipient, but we do believe in this process, and it's interesting to understand in which other countries the brand would have that opportunity for expansion. We observe the traffic of customers, we see what countries they're coming from, and we can also see this through the site.

Once again, this is still very incipient, but it could be promising.

That was very clear. Thank you very much, and congratulations for your results.

Good morning, Fred, Fernando, Patrícia. Congratulations for your results.

How much of the growth of the store comes from the assortment and are you thinking of expanding your assortment? Could you speak about the marketing of Nike because of the closeness of the World Cup when we speak about overlaying categories?

Now

to speak about assortment, Bob, good morning and thank you for your presence with us here. We do have a collection structure where we're always looking for new assortment, putting aside the assortment that has lost its relevance.

It's something more dynamic, not necessarily structured. It has nothing to do with the footprint of the store.

It's about number of SKUs. We refine this constantly taking into account fashion, new technologies.

This is our day-to-day, and we have a structure that responds to this. Now regarding the World Cup, as part of our line, we don't have a direct link that would be overlaid on brands like Nike and Adidas, who are sponsoring the World Cup.

We do see that these companies get a relevant part of their results coming from that, and in general, we end up being able to service the market. They offer more space in the stores for these sales, and we can service the customers with our products.

There is no overlay of these products, I believe. The way we carry out our operation is very different.

A growth of volume, the physical growth...

Welcome to our call, Bob. About the growth of stores and different measures in terms of price, we're focused on pieces.

We have a lower price, a lower average ticket for pieces, and this is very healthy. We're focusing on the increase of tickets, on the focus of our customer base, and less focused on price.

We want to have a competitive brand with a fair price because our brand, as is very strong when it comes to presence. This has become more important in our business.

This is one more reason to always be very careful with price. We want to remain competitive at a fair price, and well, we don't want this to be the main factor of growth of sales.

This is very encouraging.

Thank you very much.

Good morning, everybody. My question is a follow-up on your reduction of head count you carried out at the beginning of the year.

If you could give us more color, which was the magnitude of savings this will generate, and the size of the cuts.

Kelvin, good morning. We had a good reduction.

It wasn't radical, and it wasn't concentrated on any area. These were opportunities that we foresaw in optimization, enhancing expenses, and also cuts in the general expenses of the company.

The work offers outsource work to third persons, marketing. In marketing, we saw the opportunity of gaining efficiency.

There was no concentration. We analyzed the budget this year.

Considering that this will be a challenging year for the retail market, we decided to anticipate cuts at the beginning of the year, even coming from a very positive year in 2025. It's an important moment.

It has been done, and I hope you will understand that we won't offer you more details on this. All of this will help us navigate through the rest of the year in a lighter fashion and because of our expenses until the close of the year.

Thank you.

Thank you very much.

Good morning, everybody. I would like to know a bit more about sell-in, which was strong this quarter.

How are the purchases now? Has there been a recovery of sell-out and a recovery of royalties?

It's exactly what you mentioned, Renan. There's something I ended up not mentioning that is important to underscore and value.

The sell-in was a result of a very good collection, good acceptance from the franchisees and the customers, but a better operation with the change of collection. We were able to change the summer collection for the winter collection with more novelties.

That's why we had a greater sell-in, and with a better logistics operation without delays in the delivery. We did face those delays in delivery last year.

We had a well-rounded operation this year with more novelties in the change of collection. Of course, this had a positive impact on the second quarter.

We have the whole quarter with a new collection that's doing very well. We have novelties, new colors.

We also launched new things, new technologies, new fabrics, mini-collections. The capsule collections are doing very well.

There is a positive transfer of sell-out as well in the second quarter. If this is confirmed, it will increase our gross margin.

Perfect. Thank you.

I'm sorry. It's the composition of our net revenue with that factor of sell-in.

That was the only factor that caused pressure. We had no change that we carried out at the beginning of the year.

The share of these products in the sales was very similar to last year. Even with this neutralization, the margin was strong, as it was in the first quarter last year.

I will begin, and then Fred will complement speaking about TFSports and the ecosystem. It's very difficult to make statistics tangible here.

We have to have statistics to prove what we're saying about the sector. There is a trend that began very strongly after the pandemic and increased the pace beginning last year.

We see people that are very engaged with physical activity. The younger generations are ever more engaged, and then we have the advent of people losing weight.

It's a favorable trend for the sector going forward. I can't mention statistics, but all of this began with the pandemic and grew stronger last year.

A very good outlook for everything related to wellness and health, nutrition, and the practice of sports, of course. That is precisely what I wanted to remark on, a greater awareness of people, obviously physical activity, good nutrition, sleep.

We are very, very well-positioned to be able to service people in that realm. We have all of that operation for athletes, the events that we organize, we're offering healthier nutrition and the trend of society as a whole, that is to seek a better quality of life and social connection.

I think that we now have gained greater connectivity at work as well. Artificial intelligence has increased productivity at work, and there's that trend for people who truly want to live their lives more and have a healthier life.

The company is well-positioned for those two aspects. We're quite enthusiastic with this, that ability of connecting people with the goal of a healthier life in mind.

I would like to thank all of you for your attendance. We're extremely satisfied with the results presented, with the growth of the company, with the health of our figures, and with very good outlook at the beginning of the year, although it will be more challenging.

I would like to congratulate our team, thank the team for the very good results, thank our franchisees. They're a fundamental part of our business, of course, as well as the suppliers and all the stakeholders of the company.

We're at your entire disposal. Should you have any additional doubt, please call us, send a message, and have a very good day.

Thank you very much once again.