Brazil’s Vulcabras reported sales increased 7.3 percent to R$784.6 million ($135 mm) in the third quarter, with growth seen at its owned Olympikus brand as well as licensed Mizuno and Under Armour athletic footwear brands.
In 3Q24, the gross billed volume reached 8.3 million pairs/pieces, marking a 6.6 percent increase over the 7.8 million pairs/pieces recorded in 3Q23.
Athletic Footwear volume saw a 1.6 percent increase in 3Q24 to 5.5 million compared to 3Q23. The growth in Athletic Footwear volume was driven by a 2.7 percent increase in the domestic market with gains across sports shoes, slippers, apparel and accessories, and professional boots. This was offset by a significant decline in export sales due to reduced consumption in the Argentine market, the leading destination for the company’s exports.
In the domestic market, all marketed categories, sports shoes, slippers, apparel and accessories, and professional boots, performed positively this quarter, with net revenue growth compared to the same period last year.
Other Footwear and others grew by 15.0 percent to 1.2 million from 3Q23, with notable growth in categories such as athletic sandals and professional boots. Apparel and Accessories recorded a 19.7 percent increase in 3Q24 to 1.7 million compared to 3Q23. This growth was propelled by higher sales across all brands and greater online sales penetration.
Net revenue from the athletic footwear category was R$673.0 million, a growth of 6.4 percent in 3Q24 compared to 3Q23, accounting for 85.8 percent of the total revenue.
Commenting on brand performance, Vulcabras said, “Olympikus continues its solid expansion, with an increase in average pricing driven by the products from Família Corre. This quarter, the line was expanded with new models, including Corre 4, an update of the most worn running shoe by Brazilian runners on Strava in 2023, in addition to the Corre Grafeno, Corre Max, and Corre Trilha models. The super sneaker Corre Supra stood out by winning 12 places at the Porto Alegre Marathon last September, reinforcing the brand’s presence in the high-performance running segment.
“Mizuno expanded its presence in football by announcing player Gabigol as the brand ambassador, aiming to increase visibility and connection with consumers in the football boots segment. In Lifestyle, the brand opened the Mizuno Listening Store in Brazil to connect with urban culture and showcase its Sportstyle product line. In running, it reinforced its presence in the segment with the opening of the Mizuno Running Station, a space at Raia da USP, the University of São Paulo’s rowing course in São Paulo, strengthening the brand’s connection with the sports community.
“Under Armour, besides its success in training and basketball categories, announced its entry into the outdoor segment, extending its commitment to innovation for outdoor activity products. With the Defense line, developed and produced 100 percent in Brazil, the brand aims to operate in this expanding market, both globally and nationally.”
In the quarter, gross margin was 43.1 percent, an increase of 0.2 percentage points compared to 3Q23. The recurring EBITDA was R$185.5 million in the quarter, with a growth of 4.7 percent compared to R$177.1 million in 3Q23, with a recurring EBITDA Margin of 23.6 percent, down 600 basis points year over year.
The recurring net income reached R$146.3 million, a growth of 14.7 percent with a recurring net margin of 18.6 percent, which is 1.2 percentage points higher than 3Q23.
Looking ahead, Vulcabras said, “We remain very optimistic for the year’s closing. The upcoming months are crucial for retail, with important dates like Black Friday and Christmas, which always positively impact consumer behavior. We will continue focusing on our growth avenues and our diversified portfolio mix, continually improving our efficiency and the consistency of our results.”
Image courtesy Vulcabras/Mizuno
