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 2025 second quarter added to the company’s record 20 consecutive quarters of year-over-year (y/y) growth. Vulcabras reported a quarter with accelerated growth, reportedly driven by its vertically integrated business model, a focus on product innovation, and brand management highly connected to Brazilian consumers.

Second quarter Gross Operating Revenue (GOR) totaled R$1,043 million in the quarter, an increase of 17.3 percent y/y compared to the 2024 second quarter.

The e-commerce channel reportedly maintained its positive trajectory, growing 33.8 percent y/y and generating R$132.1 million in revenue during the quarter, representing 14.8 percent of Net Revenue for the quarter. The company stated in its second-quarter report that performance was strengthened through direct engagement with consumers, expanded digital presence for the three brands, and sustained healthy margins without resorting to aggressive promotions.

Footwear Division Growth Driven by Running
Vulcabras said the Footwear division continued its expansion into Q2, driven by the Corre line from Olympikus. In the year of its 50th anniversary, Olympikus reportedly continued to grow across all channels, with running standing out, fueled by the success of the Corre family, which expanded its portfolio with the launches of Corre Turbo and Supra 2; the latter made it to the podium at the Porto Alegre International Marathon.

Mizuno reportedly advanced its high-performance innovation strategy with the launch of the Neo Vista 2, alongside the Neo Zen, reinforcing its presence in the Performance Training segment. The Mizuno Running Station remained a relevant hub for runners and groups at USP, with frequent activations and direct consumer engagement.

In the Sportstyle segment, Mizuno launched the global campaign “The Game of Quebrada” that was filmed in Brazil and broadcast worldwide, promoting the Prophecy Morelia model. The “AM Sessions” events, which connect the brand with global trends through music, coffee, and urban culture, are said to further strengthen its connection with younger audiences. In football (soccer), the launch of the special edition Morelia 40 Years, in partnership with sponsored athletes, further enhanced the brand’s positioning in the category.

Under Armour reportedly posted its best quarter under Vulcabras’ management, driven by the Training and Sports Lifestyle categories, with highlights for the Reps and Tribase Cross 2 models. In basketball, the brand strengthened its presence with new colorways of the Curry 12, expanding its connection with athletes and fans of the sport.

Gross Production Volume
Vulcabras stated that the consistent growth in gross volume in the second quarter of 2025 reflects the effectiveness of the company’s commercial and operational strategies. During the period, all categories posted volume growth compared to the second quarter of 2024, which the company said demonstrates the “strength of demand and the effectiveness of the actions implemented.”

Vulcabras has been operating in the Brazilian footwear sector for 73 years, during which time it has consolidated itself as the largest athletic footwear company in the country. The company’s shoes are available in stores throughout Brazil, supported by an extensive commercial team that serves more than 10,000 customers nationwide, as well as in South American countries, through e-commerce and the brand’s own stores. More than 800 new models are produced annually, designed and developed in the largest tech and development center for athletic shoes in Latin America, located in Parobé, RS.

The products are made in two factories located in the Northeast region, in Horizonte/CE and Itapetinga/BA. The company’s administrative center is in Jundiaí, SP, and in addition, a Logistics Distribution Center for the E-commerce Channel is situated in Extrema, MG. These five units in Brazil directly employ more than 22,100 workers. There is also a branch with a distribution center in Peru.

Gross Billed Volume
Gross billed volume reached 8.5 million pairs/pieces in Q2, representing growth of 4.1 percent versus the 8.2 million recorded in the 2024 second quarter. The main highlights by category were:

  • Athletic Footwear volume, which represented 66.0 percent of total volume, grew 4.3 percent to 5.52 million pairs in Q2, compared to 5.29 million pairs in the 2024 second quarter. The consolidated increase was driven by sales in the domestic market, although partially offset by lower sales in the foreign market. All three brands posted positive performances, with volume growth.
  • Others Footwear and Others, which includes flip-flops, boots, women’s footwear, and shoe components, expanded 3.1 percent to 1.23 million pairs, up from 1.20 million pairs in the 2024 second quarter, with flip-flops standing out for delivering significant growth during the period. The segment accounted for 14.5 percent of the total volume for the quarter.
  • Apparel and Accessories, which comprised 20.5 percent of the volume in Q2, posted growth of 4.2 percent year-over-year to 1.74 million pieces, mainly driven by improvements in the domestic market.

Net Operating Revenue
In the second quarter, the Brazilian retail market was said to maintain its consistent performance, with improved product sales growth and a “positive consumption dynamic across the company’s main sales channels.”

“The combination of strong in-store presence and balanced product assortment contributed to driving Net Revenue in the period,” the company reported.

In the Foreign market, structural challenges in Peru and Argentina were reported to have continued negatively impacting sales, putting pressure on the company’s performance in the region.

Consolidated net revenue totaled R$894.8 million in Q2, representing growth of 17.6 percent compared to the R$761.0 million recorded in the 2024 second quarter. “This result reinforced the effectiveness of the commercial strategy and execution capabilities, supported by a solid portfolio and qualified retail presence,” the report noted.

  • Athletic Footwear category net revenues grew 18.1 percent y/y to R$761.2 million. The growth was said to be driven primarily by the expansion of the domestic Brazilian market, while revenue in the foreign market contracted. All three of the company’s brands posted positive results.
  • Other Footwear and Others category sales grew 16.2 percent y/y to R$61.1 million, primarily reflecting higher sales of flip-flops.
  • Apparel and Accessories category sales recorded growth of 13.6 percent y/y to R$72.5 million, primarily improved retail performance in the domestic market.

Market Summary

Domestic Market
Second quarter sales in the Brazilian retail market posted double-digit growth, with increasing 19.0 percent to R$861.2 million, compared to net revenue of R$723.5 million in the 2024 second quarter.

“This result was driven by growth across all categories, with Athletic Footwear once again standing out, showing strong expansion compared to the 2024 second quarter,” the company reported.

Foreign Market
Net Revenue in the Foreign market totaled R$33.6 million in Q2, a decrease of 10.4 percent compared to the R$37.5 million recorded in Q2 2024.

“Although operations in Peru posted positive performance in 2Q25, direct exports from Brazil primarily to the Argentine market continued to decline,” the report added.

E-Commerce
The e-commerce channel delivered solid performance in Q2, with revenue growth and continued improvement in profitability. “Acting in a complementary manner to other channels, it served as a natural extension between the brands and their consumers, providing an exclusive experience,” the company noted.

E-commerce net revenue increase 33.8 percent y/y to R$132.1 million. Vulcabras said in its report that this performance led E-commerce to account for 14.8 percent of total Net Revenue in Q2, an expansion of 180 basis points compared to the 2024 second quarter.

 

Mizuno
Mizuno reportedly advanced across Running, Sports Lifestyle, and Soccer in the second quarter. The brand launched the Neo Vista 2 and promoted activations at the Mizuno Running Station, while also connecting with the urban audience through the AM Sessions event and the international campaign Game of Quebrada.

  • In Running, the brand was said to take an important step with the launch of the Mizuno Neo Vista 2, designed for high- intensity training. The success of Neo Zen, a non- plate model for long-distance training, underscores the high-performance positioning, combining innovative design with comfort. Mizuno also strengthened its presence among runners through the Mizuno Running Station, a permanent hub for product testing and community engagement located at the USP track in São Paulo.
  • In Sportstyle, Mizuno gained further relevance with “AM Sessions,” an event combining coffee, music, and lifestyle in a daytime format, reinforcing the alignment with global urban trends. In June, the brand launched the campaign “Game of Quebrada” created and produced in Brazil, with its international debut at Paris Fashion Week. The project celebrated the 40th anniversary of the Morelia soccer boot with the Wave Prophecy Morelia Neo model, connecting tradition, urban culture, and innovation.
  • In Soccer, Mizuno launched the Ruby Red Pack, a special edition commemorating the 40th anniversary of the iconic Morelia boot. With a design inspired by Japanese tradition and updated technologies, the product reinforced the brand’s legacy. The campaign reportedly expanded the brand’s presence in soccer, strengthening its connection with consumers who value authenticity and performance.

Olympikus
Olympikus reportedly strengthened its position in the running segment in Q2 with the launch of the Supra 2 and Corre Turbo models, which introduced technological advances and expanded the Corre Family portfolio. The brand also stood out in major sporting events, achieving greater visibility, strengthening its positioning, and reaffirming its commitment to high performance and closeness to the running community.

Under Armour
Under Armour reportedly had a “historic quarter” in Q2 driven by strength in training, sports lifestyle, and basketball, driven by launches such as the Curry 12 and Infinite Elite 2, with activations that reinforced its presence in training, basketball, and sports lifestyle categories.

  • In Training, the brand maintained a strong pace, with emphasis on the Tribase Reps 2 and Cross 2 models, which drove the category’s growth during the period.
  • In Basketball, the brand enhanced its relevance with the launch of new colorways of the Curry 12. The “Desperte o modo Curry” campaign, activated during the NBA Finals, reportedly deepened connections with elite athletes and fans, reinforcing Under Armour’s authority in the category. Among the highlights, the brand introduced the Infinite Elite 2 and Curry 12 Dub Nation models in Brazil, reinforcing its commitment to delivering global innovation to Brazilian consumers.

Profitability and Expenses
The company posted gross profit of R$365.4 million in Q2, representing an increase of 12.9 percent compared to the R$323.6 million recorded in Q2 2024. The consolidated gross margin reached 40.8 percent of net revenue, a decrease of 170 basis compared to the 2024 second quarter.

Vulcabras said the gross margin is temporarily under pressure due to investments made in accelerated hiring. “With the stabilization of hiring, progress in training, and the gain of experience, efficiencies and consequently margins are expected to return to previous levels,” the company expalained.

Advertising & Marketing (A&M) investments totaled R$49.7 million in Q2, an increase of 24.3 percent compared to the R$40.0 million recorded in Q2 2024. This growth was said to reflect the “intensification of communication initiatives and brand positioning throughout the quarter.” As a percentage of net revenue, A&M expenses represented 5.6 percent of total net revenue, an increase of basis points compared to the 5.3 percent recorded in the 2024 second quarter.

General and Administrative (G&A) expenses totaled R$60.1 million in Q2, representing an increase of 40.7 percent compared to Q2 2024. During the quarter, non-recurring events were recognized related to the successful outcome of lawsuits regarding PIS/COFINS tax credits, measured in Subsidiaries. These effects were said to negatively impact G&A expenses, increasing the reported accounting amount for the period.

“As this is an extraordinary effect, the increase does not reflect the recurring operational trend, and it is important to consider this factor for an appropriate analysis of the evolution of expenses,” Vulcabras cautioned.

When analyzed as a proportion of net revenue, recurring G&A expenses reached 5.7 percent of total net revenue in the quarter, an increase of 10 basis points compared to the the 2024 second quarter.

“In addition to the non-recurring event mentioned above, the main variations during the period were concentrated in rental expenses, driven by the opening of new stores; personnel expenses, reflecting adjustments from collective bargaining agreements on administrative staff salaries; and higher payroll charges due to the reinstatement of payroll taxation,” the company reported.

Other Net Operating Income (Expenses) totaled income of R$115.8 million in Q2, higher than the income of R$4.4 million recorded in the prior-year Q2 period.

“During the quarter, non-recurring events were recognized related to the successful outcome of lawsuits regarding the recovery of PIS/COFINS tax credits, measured in Subsidiaries, with a positive impact on this line item. These effects contributed R$114.9 million to net Other Operating Income (Expenses), increasing the reported accounting amount for the period. As this is an extraordinary effect, the increase does not reflect the company’s recurring operational trend, and it is important to consider this factor for a proper analysis of expense evolution,” Vulcabras said.

Excluding the non-recurring event, Net Other Operating Income (Expenses) amounted to income of R$0.9 million in Q2, 79.5 percent lower than the income of R$4.4 million recorded in the prior-year Q2 period.

The net financial result was said to be positive in Q2, with income of R$119.3 million, compared to R$3.1 million in Q2 2024.

During the quarter, non-recurring events were recognized related to the successful outcome of lawsuits regarding the recovery of PIS/COFINS tax credits, measured in Subsidiaries, with a positive impact on the financial result. These effects contributed R$122, 9 million to the financial result line, increasing the reported accounting amount for the period. As this is an extraordinary effect, the increase does not reflect the recurring operational trend and should be considered for an accurate analysis of the evolution of this result. Excluding the non-recurring event, the financial result would have amounted to an expense of R$3.6 million.

Net Income came in at R$353.3 million in Q2, representing an increase of ~153 percent compared to Q2 2024, when net income totaled R$139.7 million. The Net Margin for the quarter reached 39.5 percent, reflecting an significant expansion of 21.1 percentage points compared to the 18.4 percent recorded in the 2024 second quarter, said to be due entirely to a one-time tax credit event.

“It is important to highlight that, in 2Q25, net income was positively impacted by R$208.4 million due to the recognition of PIS/COFINS tax credits resulting from successful lawsuits, measured in Subsidiaries, which represented a 23.3 percentage point effect on net margin.

Excluding the non-recurring events recorded in 2Q25, net income for the quarter would have totaled R$144.9 million, 3.7 percent lower than the R$139.7 million recorded in the prior-year Q2 period. The recurring net margin for the quarter reached 16.2 percent, reflecting a decrease of 202 basis points compared to the 18.4 percent reported in the 2024 second quarter.

EBITDA totaled R$296.4 million in Q2, representing growth of 69.0 percent compared to the R$175.4 million recorded in the prior-year Q2 period. EBITDA margin expanded 10.1 percentage points in the year-over-year comparison, increasing from 23.0 percent in the 2024 second quarter to 33.1 percent in the 2025 second quarter.

Once again, the company pointed out that it was important to highlight that, in Q2, EBITDA was positively impacted by R$105.6 million due to the recognition of PIS/COFINS tax credits resulting from successful lawsuits, measured in Subsidiaries, which represented an 11.8 percentage point effect on the EBITDA margin.

Excluding the non-recurring events recorded in 2Q25, EBITDA for the quarter would have totaled R$190.8 million, 8.8 percent higher than the R$175.4 million recorded in the prior-year Q2 period. The recurring EBITDA margin for the quarter reached 21.3 percent, reflecting a decrease of 1.7 p.p. compared to the 23.0 percent reported in the 2024 second quarter.

“Nevertheless, EBITDA margin remained at a solid level, consistent with the operating structure, highlighting its ability to adapt and remain resilient in the face of the challenges during the period,” the company added.

Balance Sheet Summary
As of June 30, 2025, the company reported net debt of R$139.0 million, R$116.4 million higher than the balance recorded at year-end 2024. The increase in net debt was mainly due to the reduction in cash and cash equivalents, as a result of higher working capital requirements, the acceleration of CapEx investments, and the maintenance of the Company’s monthly dividend distribution policy.

Capital Allocation
Reinforcing its commitment to generating shareholder value and maintaining disciplined capital management, in light of extraordinary results for the quarter, the company announced the additional payment of dividends in the amount of R$300 million. In addition, it also announces an additional monthly dividend distribution of R$0.125 per share for the months of November and December 2025.

With this, we complete 18 months of already approved monthly dividends in a total of R$741 million distributed to shareholders in 2025.

Accelerated Growth Momentum
With robust order books for the second half of the year, accelerated retail sell-out, and investments directed to meeting growing demand, Vulcabras remains confident in the continuity of its trajectory. The combination of innovation, portfolio expansion, and operational efficiency will continue to drive the performance, consolidating its leadership position in the Brazilian sports market.

Images courtesy Valcabras S.A.