Vulcabras, the Brazilian footwear company that owns Olympikus and has licenses with Mizuno and Under Armour, saw sales growth accelerate in the second quarter of 2021, despite continued headwinds tied to the Covid-19 pandemic. Its revenues soared by 304.7 percent on the year earlier to 399.4 million Brazilian reais (€65.6m-$77.0m), after rising at a 30.7 percent year-on-year clip in the previous quarter, with sales increasing strongly both in its domestic market and abroad. Sales were also up by 22.1 percent as compared to the second quarter of 2020.

Vulcabras’ sales in Brazil grew by 298.7 percent to R$365.2 million (€60.0m-$70.4m) on the year earlier while its foreign sales jumped by 381.7 percent to a much lower level of R$34.2 million (€5.6m- $6.6m). The start of the quarter was marked by the closure of most of its physical retail stores in April, which were also shuttered the previous month due to a second wave of the pandemic in Brazil. While a large amount of goods in inventory were set to be delivered as the quarter began, the slower-than-expected resumption of activity led Vulcabras to halt production for two weeks starting on April 15, bringing forward vacations scheduled for the second half of the year.

In volume terms, the company’s sales amounted to 5.7 million pairs/pieces in the second quarter, up by 105.3 percent versus the year earlier but still 13.6 percent below the second quarter of 2019. Athletic footwear volumes surged by 229.0 percent, due to the positive contribution of the Olympikus and Under Amour brands and the first full-quarter contribution from the Mizuno brand, with athletic footwear’s share of total volumes increasing to 68.9 percent from 43.0 percent. Alpargatas transferred the Mizuno license for Brazil to Vulcabras last summer.

In revenue terms, athletic footwear rocketed by 438.1 percent on the year earlier to reach R$340.1 million (€55.8m-$65.5m), rising to 85.2 percent of total sales from 64.0 percent, while sales of women’s footwear shrunk by 76.4 percent to R$11.1 million (€1.8m-$2.1m), as sales in this product category were only registered in the company’s Peruvian and Colombian subsidiaries as a result of the recent licensing of the Azaleia brand to peer Grendem. Sales of slippers, boots and shoe components increased by 43.4 percent to R$20.5 million (€3.4m-$4.0m) while sales of apparel and accessories grew by 237.8 percent to R$27.7 million (€4.5m-$5.3m).

On the other hand, women’s footwear saw a 72.5 percent decrease in volumes due to the Grendene licensing deal, falling to just 2.4 percent of total volumes from 18.1 percent the year earlier. Slippers, boots and shoe components decreased by 9.8 percent to 11.8 percent of total volumes while apparel and accessories grew by 183.6 percent to 16.9 percent.

E-commerce revenues rose by 1.6 percent on the year earlier to R$12.6 million (€2.1m-$2.4m), down from the 22.2 percent growth rate seen the previous quarter but still 186.4 percent above the second quarter of 2019. Vulcabras said the slowdown was due to the fact it had concentrated on the positioning of its brands in the market rather than following suit amid strong discounts by competitors. Digital sales represented 3.2 percent of revenues in the second quarter, down from 12.6 percent the year earlier but comfortably above the 1.3 percent contribution made in the second quarter of 2019.

The quarterly gross margin widened by 7.3 percentage points to 34.1 percent. Ebitda amounted to R$102.7 million (€16.9m-$19.8m) against a loss of R$55.1 million the year earlier and double the R$50.5 million seen in the second quarter of 2019. Vulcabras generated a net profit of R$91.5 million (€15.0m-$17.6m), a clear improvement on the bottom-line loss of R$75.4 million the year earlier and triple the R$30 million profit seen in the second quarter of 2019.