Athletic Footwear drove another quarter of top-line expansion at Brazil’s Vulcabras, but the bottom line narrowed sharply – the cost of debt accumulated during one of the most generous dividend years in the company’s history.
Vulcabras reported first-quarter 2026 net revenue of R$776.4 million (approximately €121 million), up 10.7 percent year-on-year, extending the Brazilian sporting goods group’s growth run to 23 consecutive quarters. The results, published May 5, came amid what the company described as a highly promotional retail environment in Brazil.
Below the operating line, recurring net income fell 18.9 percent to R$86.1 million (approximately €13.5 million), as higher financial costs weighed after the group took on debt in 2025 to fund capital expenditure and a R$1.5 billion (approximately €234 million) dividend distribution.
Recurring EBITDA rose 11.8 percent to R$156.9 million (approximately €24.5 million), with a margin of 20.2 percent, up 0.2 percentage points from a year earlier. The net financial result swung from income of R$2.3 million in Q1 2025 to a cost of R$27.8 million in Q1 2026, driven by charges linked to loans and debentures raised in the second half of last year. Vulcabras entered 2026 with net debt of R$769.4 million (approximately €120 million).
| Vulcabras — Consolidated P&L | |||
| Q1, ended March 31 (€ millions)* | |||
| Q1 2026 | Q1 2025 | Change | |
| Net revenue | 121 | 110 | 10.7% |
| Cost of sales | -72 | -66 | 10.4% |
| Gross profit | 49 | 44 | 11.2% |
| Gross margin (%) | 40.4% | 40.2% | 0.2 p.p. |
| SG&A operating expenses | -31 | -28 | 10.2% |
| EBITDA (reported) | 24 | 22 | 7.5% |
| EBITDA margin (%) | 19.4% | 20.0% | -0.6 p.p. |
| Recurring EBITDA | 25 | 22 | 11.8% |
| Recurring EBITDA margin (%) | 20.2% | 20.0% | 0.2 p.p. |
| Net financial result | -4 | 0 | – |
| Net income (reported) | 13 | 17 | -24.5% |
| Net margin (%) | 10.3% | 15.1% | -4.8 p.p. |
| Recurring net income | 13 | 17 | -18.9% |
| Recurring net margin (%) | 11.1% | 15.1% | -4.0 p.p. |
Source: Vulcabras S.A. Q1 2026 Earnings Release, May 5, 2026. *Figures converted from Brazilian reais at an indicative rate of BRL 6.40/EUR; verify at publication-date rate. Margin rows in percent; not subject to currency conversion. EBITDA (reported) includes a R$6.0m non-recurring write-off of e-commerce platform software. Recurring EBITDA and recurring net income exclude this item.
Athletic Footwear powers growth as volumes rise and brands refresh running lines
Athletic Footwear remained the main contributor to growth in the quarter. Category net revenue rose 11.3 percent to R$653.2 million (approximately €102 million), representing 84.1 percent of consolidated revenue. Volume increased 10.5 percent to 4.8 million pairs, supported by capacity added during the 2025 plant expansion.
| Vulcabras — Net Revenue by Category | |||||
| Q1, ended March 31 (€ millions)* | |||||
| Q1 2026 | Share | Q1 2025 | Share | Change | |
| Athletic Footwear | 102 | 84.1% | 92 | 83.7% | 11.3% |
| Other Footwear and Others† | 9 | 7.4% | 8 | 7.2% | 14.1% |
| Apparel and Accessories | 10 | 8.5% | 10 | 9.1% | 2.8% |
| Total net revenue | 121 | 100.0% | 110 | 100.0% | 10.7% |
Source: Vulcabras S.A. Q1 2026 Earnings Release, May 5, 2026. *Absolute figures converted from Brazilian reais at an indicative rate of BRL 6.40/EUR; verify at publication-date rate. Share percentages are unitless and not subject to currency conversion. †Includes flip-flops, boots, women’s footwear and shoe components.
Among the managed brands, Under Armour posted the fastest revenue growth, supported by an expansion in performance running, including locally developed models such as Nonstop and Endless and the Brazilian launch of the Velociti Elite 3, the company said.
Olympikus, the domestic leader in running shoe sales, extended its performance push with the launch of Corre Pace, billed as the first ultra-running shoe conceived and made in Brazil. Mizuno continued to build out its competitive running range with the Hyperwarp collection and an updated Neo Zen 2 daily trainer, while returning to circuit racing through a naming-rights partnership for Circuito Mizuno Athenas in São Paulo.
The Other Footwear and Others category, which includes occupational boots, flip flops and women’s footwear, saw volume fall 6.9 percent, which Vulcabras attributed mainly to lower restocking orders for occupational boots as distributors entered the quarter with higher inventories. Revenue from the category rose 14.1 percent, reflecting a shift toward higher-value athletic flip flops in the mix.
Gross margin held steady despite cost headwinds.
Gross profit climbed 11.2 percent to R$313.5 million (approximately €49 million). Gross margin edged up 0.2 percentage points to 40.4 percent, which management attributed to higher average selling prices, a richer product mix and production efficiency gains.
The quarter also brought cost pressures, including the second phase of Brazil’s payroll tax reinstatement, a statutory minimum wage increase, and elevated absenteeism, alongside higher raw material and packaging costs.
Marketing investment increased 27.6 percent to R$45.3 million, or 5.8 percent of net revenue, driven by Olympikus’s 50th anniversary activity and the Corre Pace launch campaign.
