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 the “combination of strong brands, a vertically integrated business model and a commercial strategy that captures opportunities without compromising profitability, enabled the company to surpass its own records and deliver another year of historic results in 2025.”

Vulcabras S.A. reports in the Brazilian real (R$) currency. Conversions for R$ to U.S$ were calculated at the average exchange rate from the Federal Reserve Economic Data of 5.39 real to one U.S. dollar for the fourth quarter and 5.59 real to one U.S. dollar for the full year 2025. Vulcabras may use different conversion rates for its business based on shipment timing, etc.

The company reported gross revenue of R$4.20 billion (~$751 mm) in 2025, a new record, representing 16.7 percent year-over-year (y/y) growth. Net revenue totaled R$3.56 billion (~$637 mm), an increase of 16.8 percent versus full-year 2024.

During the year, the e-commerce channel continued its accelerated growth, increasing 25.0 percent y/y, from R$433.7 million in 2024 to R$543.1 million (~$97 mm) in 2025, and now representing 15.3 percent of total net revenue.

The gross margin of 41.0 percent of revenue for the year was said to “demonstrate the ability and resilience in maintaining profitability despite all challenges related to direct labor, which were intensified by the accelerated production growth throughout the year.”

Recurring EBITDA totaled R$763.1 million (~$158 mm) in 2025, up 13.0 percent y/y. The recurring EBITDA margin reached 21.4 percent of revenue.

Recurring net income amounted to R$572.9 million (~$208 mm) for the year, with a recurring net margin of 16.1 percent of revenue.

Fourth Quarter Summary
Vulcabras said the fourth quarter was marked by a more intense, prolonged promotional environment across both physical and online retail. Discounts, which were previously concentrated around Black Friday, began as early as October. The company said this extension of the promotional calendar throughout the quarter led to greater demand dispersion and reduced the concentration traditionally observed during the Christmas season.

Gross Billed Volume reached 9.2 million pairs/pieces, up 0.2 percent from 9.1 million units in Q4 2024. Vulcabras said it is worth noting that the prior-year comparison base already reflected strong performance, particularly in Athletic Footwear, which had posted 6.6 percent growth in that prior-year Q4 period.

Athletic Footwear recorded volume of 5.9 million pairs in the fourth quarter, a 1.7 percent decrease from Q4 2024, while remaining virtually in line with Q3 2025 levels and supporting 3.2 percent growth in the second half. Performance was said to reflect the increasing share of more technologically advanced models in the mix, which required greater manufacturing complexity and longer production lead times. This movement was accompanied by a 13.0 percent increase in average ticket compared to Q4 2024, highlighting the “qualitative improvement in sales.” Demand reportedly remained consistent in both the Domestic and Foreign Markets.

Others Footwear and Others declined 2.0 percent in the fourth quarter, reportedly due to lower volumes of occupational boots, partially offset by higher volumes of sports flip flops.

Apparel and Accessories revenue increased 7.8 percent in the fourth quarter, with all three brands delivering positive performance, particularly Under Armour. The result reflects the strengthened presence in this segment and the consolidation of its portfolio diversification strategy. Year-to-date in 2025, gross billed volume totaled 33.7 million pairs/pieces, representing a 4.2 percent increase compared to the 2024 fourth quarter.

Despite stable volumes, consolidated revenue increased, said to be driven by an improved product mix and a higher average ticket, which contributed to the recovery of gross margin and the expansion of EBITDA margin in the quarter.

Fourth Quarter Revenue
In the fourth quarter, Vulcabras maintained solid net revenue expansion, consolidating the progress achieved throughout the year. The quarter was marked by consistent performance, driven by strengthened brands, strategic execution across sales channels, and a well-balanced portfolio. For the 22nd consecutive quarter, the Company reported sales growth.

Net revenue totaled R$1,008.6 million (~$187 mm) in the fourth quarter, representing an increase of 11.4 percent compared to R$905.7 million recorded in the prior-year Q4 period. The company said it is worth noting that the comparison base in the 2024 Q4 period had already been impacted by an extraordinary performance, with revenue growth of 15.0 percent compared to the same period of the previous year. This result highlights the ability to deliver sustainable growth, even on top of an already high comparison base.

E-Commerce
Amid a retail environment marked by intense promotional activity throughout virtually the entire quarter, the commercial strategy implemented in the e-commerce channel focused on preserving the positioning of key product stories, protecting and capturing healthy margins, especially within the marketplace sub-channel, where discounting was even more aggressive. As a result of this commercial discipline, despite more moderate revenue growth, the EBITDA margin maintained its positive upward trajectory.

Net revenue in the E-commerce channel totaled R$147.8 million (~$27 mm) in Q4, up 3.8 percent compared to the Q4 period of the previous year. E-commerce accounted for 14.7 percent of consolidated net revenue in the 2025 fourth quarter.

Category Summary

Athletic Footwear revenue grew 11.2 percent y/y to R$864.8 (~$160 mm) in the quarter, reportedly driven by a more premium mix across all group brands, with emphasis on higher-value-added products in high performance, running, and sports lifestyle, which contributed to the increase in average price. At Olympikus, the performance running line continued to drive results for both the category and the brand. Under Armour and Mizuno reportedly also stood out, delivering robust growth.

Others Footwear and Others category grew 12.0 percent y/y to $R70.2 (~$13 mm), reflecting the strong performance of sports flip flops, which reportedly continued to gain relevance in the product mix, partially offset by lower revenue from occupational boots.

Apparel and Accessories category increased 12.7 percent to R$73.6 (~$14 mm) in the fourth quarter, reportedly led by Under Armour, which maintained a strong performance in the domestic market, and Olympikus, which continued to expand its presence in the segment.

 Profitability & Expenses
Gross margin in the quarter reached 41.4 percent, essentially flat to the prior-year quarter, reportedly “reinforcing the significant gains in operational and manufacturing efficiencies following a period of accelerated expansion of the workforce across industrial units.”

In the fourth quarter, the net financial result was an expense of R$20.4 million, compared to financial income of R$1.7 million in Q4 2024.

During the quarter, interest expense increased due to the rise in financial liabilities resulting from dividend payments made throughout the quarter. The company ended 2025 with net debt of R$769.4 million, compared to R$22.6 million recorded in December 2024. Most of this funding was raised in the second half of 2025, resulting in higher interest expenses in 4Q25.

In 2025 and 2024, non-recurring events related to the recovery of PIS/COFINS tax credits recognized in subsidiaries were recorded, with a positive impact on this line item. These effects amounted to R$127.9 million in 2025 and R$15.4 million in 2024, increasing the reported figures in the respective periods.

Excluding non-recurring events, the net financial result totaled an expense of R$26.8 million in 2025, representing R$34.1 million more in expenses compared to the recurring financial income of R$7.3 million recorded in the same period of 2024.

The company recorded net income of R$158.8 million (~$29 mm) in Q4, a 6.1 percent decrease from the comparable period in the previous year, when net income totaled R$169.2 million. Net margin for the quarter reached 15.7 percent of revenue, down 3.0 percentage points compared to the 18.7 percent reported in 4Q24.

The decline in net income in Q4, both in nominal and relative terms, was said to be primarily driven by “higher financial expenses, reflecting the new leverage profile, as well as higher income tax and social contribution expenses.”

The EBITDA margin reached 21.9 percent in Q4, 70 basis points higher than in Q4 2024, reflecting the combination of quality growth, significant progress in manufacturing efficiencies, and the capture of operating leverage across channels.

Image courtesy Vulcabras S.A./ Brazilian Footwear Show