Brazil’s Vulcabras reported sales jumped 21.8 percent to R$955.7 million ($178 mm) in the third quarter, with growth across its Olympikus as well as licensed Mizuno and Under Armour brands.

Vulcabras said, “The favorable retail consumption environment in Brazil continued to drive the growth of the three brands and all its business categories.”

Highlighting brand performance, Vulcabras said, “Olympikus remains a leading player in the domestic running market, with the Corre line consolidating its position as a benchmark in technology, performance, and accessibility. Under Armour, in turn, recorded its best quarter of operations in Brazil, driven by the Training and Running Inspired categories. Mizuno maintained its growth pace, strengthening its presence in the high-performance segment.”

The Athletic Footwear category grew 22.9 percent in Q325 to R$827.4 million compared to 3Q24. Vulcabras said, “All three company brands posted growth. Olympikus stood out for its performance running line, which continues to drive the results. Under Armour also performed strongly, reaching a new historical record in Athletic Footwear revenue.”

Vulcabras said the strength in athletic footwear was “also boosted by increased product availability, enabled by recent expansions at the manufacturing units, which contributed to greater reach and agility in supplying the retail channel.”

The Others Footwear and Others category grew 21.1 percent to R$64.8 million compared to 3Q24, reflecting the solid performance of sports flip flops, which continued to gain relevance within the product mix.

The Apparel and Accessories category grew 9.3 percent in Q325 to R$63.5 million, with highlights from Olympikus, which maintained strong performance, and Under Armour, which reached a record high in apparel and accessories revenue.

In the e-commerce channel, sales increased by 25.4 percent, totaling R$144.8 million and accounting for 15.2 percent of revenue. Vulcabras said, “The launch of the Mizuno app stood out as one of the strategic initiatives for the channel, deepening the relationship with consumers through a personalized experience, increasing mobile channel conversion, and boosting the average ticket per transaction.”

Providing a brand management update on its three brands, Vulcabras said, “Olympikus continued celebrating its 50th anniversary with energy and a nationwide presence. The brand held 10 races during the quarter as part of the 50 Commemorative Races project. It also launched standout products such as the 50-Year Pack from the Corre line and the Corre 4 Vanderlei Cordeiro de Lima edition.”

“Mizuno reaffirmed its leadership in technology and performance with the launches of the Wave Rider 29 and the Hanabi Pack, in addition to the growing success of the Mizuno Running Station and the expansion of its relationship with consumers through the new Mizuno App.”

“Under Armour consolidated its position in Brazil with a strong presence in the training and basketball categories, through initiatives such as the Curry Camp, the launch of the Reps 2 SE, and the new edition of SUAR, strengthening its connection with athletes and content creators.”

Vulcabras recorded net income of R$547.2 million in the quarter, representing an increase of 217.8 percent compared to the same period of the previous year, when net income totaled R$172.2 million.

The solid sales performance, combined with a reduction in operating expenses, partially offset the pressure on gross margin, which declined 1.7 percentage points to 41.4 percent.

Vulcabras said the reduction in gross margin had already been anticipated because of the investments made in accelerated hiring. Despite this temporary effect, when compared to the gross margin achieved in 2Q25, there was an increase of 0.6 percentage points, marking a gradual improvement in operational efficiency and consistent progress in profitability. With the stabilization of hiring, training development, and accumulated experience, margins are expected to improve and return to previous levels.

Net income in the quarter was also positively impacted by R$384.0 million due to the recognition of PIS/COFINS tax credits recorded in subsidiaries, as well as the recognition of deferred income tax (IRPJ) and social contribution (CSLL) on tax losses, negative social contribution bases, and temporary differences. Excluding the non-recurring events recorded in Q325, net income for the quarter would have totaled R$163.2 million,11.6 percent higher than the R$146.3 million recorded in the same period of 2024.

The recurring net margin for the quarter reached 17.1 percent, representing a 1.5 percentage point decrease from the 18.6 percent reported in 3Q24.

In Q325, the EBITDA totaled R$226.5 million, representing an increase of 15.1 percent compared to the R$196.8 million recorded in the same period of 2024. EBITDA margin decreased by 1.4 percentage points, from 25.1 percent in 3Q24 to 23.7 percent in Q325.

Looking ahead, Vulcabras predicted continued growth in the fourth quarter. The company said, “The consistent pace of confirmed orders for the fourth quarter, the sustained high sell-through levels at retail, and the ongoing investments to meet demand reinforce confidence in sustaining its growth cycle. With strong brands, continuous focus on innovation, portfolio expansion, and operational efficiency, the Company consolidates its leadership position in the Brazilian sports market.”

Image courtesy Under Armour