Grupo SBF continues to make progress on key financial metrics, ranging from further inventory reductions to cost cuts, helping to reduce its year-over-year leverage by 39 percent to 843.4 million Brazilian reais (€151.6m).
In Q1, the Brazilian group improved its year-over-year Ebitda by 14 percent to R$234.0 million (€42.1m) as net income came in at R$37.9 million (€6.8m). Operating income rose by 21 percent to R$129.5 million (€23.3m) on 1.6 percent revenue growth to R$1.5 billion (€268.8m).
At Centauro, the largest sporting goods retailer in Latin America, where the company launched a new visual merchandising project, Q1 net revenues increased by 4.9 percent to R$738.8 million (€132.8m). Brick-and-mortar sales rose by 5.3 percent to R$596.3 million (€107.2m), with higher conversion rates and items bought per transaction offsetting lower foot traffic in southern and northeastern stores. Year-on-year sales per square meter increased by 4.2 percent. Ten doors were closed in Q1. Meanwhile, Centauro’s digital segment generated a 3.2 percent sales increase to R$142.5 million (€25.6m).
Bolstered by 5.6 percent growth in its DTC business, Fisia (Nike’s exclusive representative and distributor in Brazil) revenues rose by 2.5 percent in Q1 to R$877.5 million (€157.7m). Brick-and-mortar sales were R$215.4 million (€38.7m), benefitting from the opening of six stores but negatively impacted by fewer markdowns. The segment’s digital business grew by 7.3 percent to R$341.3 million (€61.4m), but wholesale business sales dropped by 14 percent to R$320.8 million (€57.7m). Nikebrick-and-mortar store sales increased by 28 percent, as same-store sales jumped by 11.6 percent in Q1. Nike digital sales rose by 8.4 percent.
