Grupo SBF, the operator of Brazil’s top sporting goods chain in Centauro, said its Q2 results were negatively impacted by “still high inventory levels” in its Fisia business, where an aggressive markdown strategy wiped out the gross margin gains generated by its DTC segment. Second quarter adjusted Ebitda slipped by 56 percent to 159.9 million Brazilian reais (€29.7m) for the period ended June 30.
The group reported a 31 percent decline in operating income to R$49.0 million (€9.1m) as Ebit slid to a loss of R$34.2 million (€6.4m). The Q2 net loss was R$32.6 million (€6.0m) versus a profit of R$31.7 million.
Total revenues increased by 9 percent to R$1.59 billion (€295.7m) from R$1.46 billion as gross margin improved by 180 basis points to 47.6 percent from 45.8 percent.
Centauro’s Q2 net revenues rose by 1.8 percent to R$802.9 million (€149.0m) with brick-and-mortar sales increasing by 6.1 percent to R$619.6 million (€115.0m) and same-store sales improvement of 7.2 percent. Digital revenues declined by 10.7 percent to R$183.3 million (€34.0m) but realized better year-over-year profitability due to fewer markdowns and new ship-from-store rules.
At Fisia, 41 percent growth in DTC sales contributed to overall sales improvement of 15.6 percent to R$906.0 million (€168.1m). Wholesale revenues declined by 20.6 percent to R$324.8 million (€60.3m) as more customers migrated to it digital platforms.
Digital sales were R$348.9 million (€64.8m) and brick-and-mortar sales rose by 82 percent to R$232.3 million (€43.1m), bolstered by the opening of 17 Nike stores over the last year.
