Vulcabras S.A., the Brazil-based company that manages, manufactures and distributes footwear, apparel and accessories in South America for the Under Armour and Mizuno brands, and owns and manages the Olympikus brand, reported that 2026 started with another quarter of growth, reinforcing the resilience of its business model even in a still challenging consumption environment.

“The combination of strong brands, a verticalized operation and commercial discipline supported the performance, which reached its 23rd consecutive quarter of growth, with advances in both revenue and volume,” the company said in its first quarter earnings release.

Category Volume
Vulcabras reported gross volume of 7.6 million pairs and units in. the first quarter, a 6.8 percent increase compared to the 2025 first quarter.

Athletic Footwear: Total volume reached 4.8 million pairs in the first quarter, representing a 10.5 percent y/y increase. Performance reflected consistent demand for products across the three brands and was supported by the expansion of production capacity implemented throughout 2025. Demand in the domestic market remained solid, while performance in the Foreign Market came in below expectations.

Others Footwear and Others: The category posted a 6.9 percent decline in volume in the first quarter, mainly impacted by lower sales of occupational boots. This movement was primarily driven by reduced inventory replenishment by distributors, who started the period with higher-than-expected stock levels. Throughout the quarter, a gradual normalization of these inventories was observed, with a recovery in order flow. Performance was partially offset by growth in volumes of athletic flip flops.

Apparel and Accessories: The category recorded volume growth of 6.2 percent compared to 1Q25, with highlights for the performance of the Under Armour brand

 

Category Sales Summary
Net revenue reached R$776.4 million, up 10.7 percent year-over-year (y/y), said to reflect the continuity of the growth strategy focused on mix improvement, increased share of higher value-added products and strong acceptance of the portfolio.

Revenue growth was mainly driven by the Athletic Footwear category, which increased by 11.3 percent in the period. Olympikus maintained strong performance, with highlights in the performance-running segment, while Under Armour posted the highest relative growth among the brands, supported by new product launches. Mizuno continued to expand its presence, with consistent portfolio growth.

Athletic Footwear grew 11.3 percent compared to 1Q25. The evolution of the brands and the strengthening of the product mix drove performance. Olympikus maintained strong performance, with highlights in the performance-running segment. Under Armour posted the highest relative growth among the brands, driven by the launch of new running models, while Mizuno continued to expand, supported by portfolio expansion.

Others Footwear and Others recorded a 14.1 percent increase in revenue compared to 1Q25, reflecting the strong performance of athletic flip flops, which gained greater relevance in the mix, partially offset by a decline in revenue from occupational boots.

Apparel and Accessories posted a 2.8 percent increase in 1Q26. Highlights included Under performance in the domestic market

Brand Summary
Olympikus, Mizuno and Under Armour reportedly “advanced consistently” within their respective territories, increasing relevance across running, training and sportstyle segments. Olympikus reinforced its leadership in the running category by expanding its portfolio and advancing community-driven initiatives; Mizuno strengthened its positioning in performance and technological innovation, while also expanding its presence in sportstyle; and Under Armour progressed in building its presence in running and training, combining local development with global innovation.

Olympikus
In the first quarter of 2026, Olympikus continued executing its brand strengthening strategy, combining product innovation, consumer insights generation, and a consistent presence within the running community across different regions of Brazil.

The period was marked by the launch of Corre Pace, the first ultra running shoe developed in Brazil, representing a significant step forward in the high-performance proposition. The model introduces a new category within the portfolio and reinforces ability to develop globally competitive technology. The launch was accompanied by the event, which brought together media, athletes, and key opinion leaders, increasing brand visibility and consolidating its positioning in the premium segment.

Mizuno
The company said that Mizuno further consolidated its position in the first quarter with a focus on technological innovation, portfolio expansion, and strengthening its connection with Brazilian runners, aligned with its global positioning Beyond.

In the running segment, the brand continued developing the Neo Line with the launch of Neo Zen 2, a premium model designed for daily use that quickly gained relevance among runners due to its versatility and adaptability across different types of training. The launch was supported by digital activations and a proprietary experience at the Mizuno Running Station, reinforcing consumer proximity and product trial.

Still within performance, Mizuno introduced the Hyperwarp super shoe collection, featuring models designed for high speed and competition, representing an advancement in the
global engineering. As part of this strategy, the company hosted the Hyperwarp Challenge Brazil, bringing together elite athletes in a proprietary event that reinforced the high-performance positioning and increased its visibility within the segment.

In March, the brand announced its return to road racing, securing the naming rights of the Circuito Mizuno Athenas, one of São Paolo’s most traditional race circuits. The first stage gathered more than 9,000 participants and featured a record-breaking performance using technology from the Hyperwarp collection, reinforcing product credibility in a competitive environment. The Mizuno Running Station remained a key strategic asset, consolidating its role as the main relationship and product trial hub in Brazil. During the quarter, the space reached the milestone of 100,000 people impacted, strengthening brand awareness and direct engagement with the running community.

In the sportstyle segment, Mizuno advanced at the intersection of sport and urban culture, with launches that reinforce its positioning in lifestyle. Highlights include the Wave Prophecy Morelia Neo, which connects football heritage with urban aesthetics, and the collaboration with French brand VRUNK, expanding international presence by incorporating elements of Brazilian culture into its creative narrative.

With an integrated strategy combining innovation, performance, and cultural expression, Mizuno continues to strengthen its presence in the Brazilian market and expand its relevance across running and sportstyle segments.

Under Armour
The company reported that Under Armour reinforced its presence in the training market and expanded its role in performance running in the first quarter, with new products developed for Brazilian runners.

In the training segment, the brand launched the Cross 2 SE, strengthening its position in strength training with a model designed to deliver stability and performance.

In running, the quarter marked a relevant strategic move with the structuring of a complete product pyramid, connecting different runner profiles. The brand launched the Nonstop and Endless models, developed in Brazil by R&D team in partnership with Under Armour Global, expanding access to technology and strengthening its presence among entry-level and intermediate runners.

At the top of this strategy, Under Armour brought the Velociti Elite 3 to Brazil, a high-performance model validated in international competitions and worn by the winner of the 2025 Boston Marathon. The launch positions the brand more competitively in the elite segment and reinforces its ability to offer solutions for different performance levels, supported by innovation in materials, biomechanics, and product engineering.

With an integrated strategy combining global innovation, portfolio development, and closer communication with Generation Z, Under Armour continues to expand its relevance in Brazil and strengthen its presence in the training and running universe.

E-Commerce
The company said that the e-commerce channel operated in an environment of high promotional intensity, especially in marketplaces, where clearance sales extended through the first half of February. In this context, the company maintained the commercial strategy implemented at the end of 2025, prioritizing the preservation of the positioning of its key product lines and the capture of healthier margins.

As a result, revenue growth occurred at a more moderate pace. On the other hand, the operational performance, measured by EBITDA margin, maintained a positive trajectory of improvement.

Net revenue from the channel totaled R$124.4 million in 1Q26, representing a 5.1 percent increase compared to the same period of the previous year. E-commerce represented 16.0 percent of consolidated net revenue.

Regional Summary

Profitability
Gross profit totaled R$313.5 million, an 11.2 percent increase compared to 1Q25, while gross margin reached 40.4 percent, an expansion of 0.2 p.p. Recurring EBITDA amounted to R$156.9 million, up 11.8 percent, with a margin of 20.2 percent, 20 basis points above the first quarter of the previous year, evidencing operational consistency and continuous efficiency gains.

Net financial result in Q1 was an expense of R$27.8 million, compared to an income of R$2.3 million in 1Q25.

During the quarter, an increase in interest expenses was observed, driven by the higher financial liabilities resulting from the new debt profile established at the end of 2025. The Company started 2026 with net debt of R$769.4 million, which led to higher financial expenses throughout 1Q26.

The company recorded net income of R$80.1 million in Q1, representing a 24.5 percent decrease y/y, when net income totaled R$106.1 million. Net margin for the quarter reached 10.3 percent, a decline of 480 basis points compared to the 15.1 percent reported in Q1 last year.

Net income for the period was impacted by the increase in the financial result, driven by the higher level of indebtedness throughout the second half of 2025. This movement was associated with the need to support higher working capital, increased CAPEX investments and the acceleration of dividend distribution.

The company has been focusing its efforts on reducing leverage in the shortest possible timeframe, with the objective of consequently lowering financial expenses.

Non-Recurring Event: During the quarter, a non-recurring event related to the write-off of intangible assets (discontinued software) used in the e-commerce back-office platforms was recognized. This effect had a negative impact of R$6.0 million on the results in Q1, reducing reported net income.

Excluding the non-recurring event, net income totaled R$86.1 million in Q1, 18.9 percent lower than the recurring net income of R$106.1 million recorded in Q1 last year.

Strong sales performance, combined with greater dilution of operating expenses, reportedly helped mitigate the negative impacts of the financial result and the increase in the tax burden.

EBITDA totaled R$150.9 million in Q1, representing a 7.5 percent increase compared to R$140.4 million recorded in year-ago period.

Despite the EBITDA growth in absolute terms, the EBITDA margin declined in the comparison between 1Q26 and 1Q25, decreasing from 20.0 percent to 19.4 percent. It is important to highlight, however, that EBITDA was negatively impacted by R$6.0 million, with 80 basis-point negative impact on the margin, due to the recognition of a non-recurring event related to the write-off of intangible assets (discontinued software) used in the e-commerce BackOffice platforms.

Excluding this effect, recurring EBITDA totaled R$156.9 million in Q1, representing an 11.8 percent increase compared to the same period of the previous year. The recurring EBITDA margin reached 20.2 percent, with an expansion of 0.2 percentage points compared to 20.0 percent in 1Q25.

The EBITDA margin remained at a solid level, consistent with the operating structure, highlighting its ability to adapt and its resilience in the face of the challenges during the period.

Image courtesy Vulcabras