Grupo SBF, the operator of Brazil’s top sporting goods chain Centauro, suffered a 68 percent decline in adjusted Ebitda to 161,043,000 Brazilian reais (€31.5m) for the period ended Sept. 30. Gross margin, however, improved to 47.9 percent from 44.9 percent. Adjusted net profit, which excludes non-recurring expenses, declined 66 percent to BRL $34.3 million (€6.7m). Total net revenues dipped 1.4 percent to BRL $1.87 million (€287.7m) from BRL $1.49 million. Results were adversely impacted by costs associated with implementing a new SAP system for its business units. The new structure will enable the group to discontinue payments to Nike for system costs related to its Fisia business. With the systems changes in place and costs completed, Grupo SBF said it will reach its profitability target for the year and report fourth-quarter growth and margins above those recorded in the current period.
Centauro recovered from a slow July with strong Father’s Day and World Cup product sales to achieve an 11.0 percent increase in adjusted net revenue to BRL $868.7 million (€170.0m) and a 3.5 percent gain in adjusted gross profit to BRL $406.8 million (€79.6m). Digital sales rose 17.8 percent to the equivalent of €39.8 million. The gross margin declined to 46.8 percent from 50.2 percent. Segment results were positively impacted by the renovation of 14 stores and the demand for World Cup merchandise. With merchandise prices 40 percent higher than during the previous World Cup, the retailer sold 50 percent more jerseys during the first 10 weeks of its event launch.
In its Nike Fisia distribution business, total revenues slipped 12.8 percent to BRL $719.2 million (€144.8m). Digital sales increased 68 percent to BRL $252.3 million (€49.4m) as wholesale revenues declined 41 percent to BRL $321.7 million (€63.0m). Sales in Nike Value Stores, which counted 22 at period end, rose 8 percent to BRL 145.2 million (€28.4m). During the period, the first two NDIS (Nike Direct Inline Stores), largely focused on selling lifestyle and female-focused products, opened in São Paulo with solid early results.
