Grupo SBF, which operates Brazil’s top sporting goods chain in Centauro, received a lift from lower expenses, growth within its digital channel, and lower inventory levels in Q3 ended Sep. 30. The group reported a 216 percent increase in year-over-year operating income to 168.6 million Brazilian reais (€32.1m) as net income came in at R$72.7 million (€13.8m). The company, which attributed its net income gain to a 440-basis point decline in expenses and less pressure on logistics due to lower inventory levels, said it will continue to look for further expense reductions.
Total Q3 revenues increased by 22 percent to R$1.79 billion (€341.0m) from R$1.47 billion. Gross margin declined by 130 basis points to 46.6 percent from 47.9 percent.
Centauro’s Q3 net revenues inched up by 1.6 percent to R$882.7 million (€167.9m), with brick-and-mortar store sales growth up 5.9 percent to R$704.2 million (€133.9m), helped by the performance of premium doors and the apparel category. Ten unprofitable stores were shuttered in Q1. Digital sales declined by 12.3 percent to R$178.5 million (€33.9m), but the channel’s profitability improved due to lower marketing expenses and shipping costs.
At Fisia, net sales rose by 47 percent to R$1.06 billion (€201.1m) as digital grew by 63 percent to R$410.9 million (€78.1m) and brick-and-mortar revenues increased by 83.0 percent to R$265.8 million (€50.5m).
The group has opened 19 Nike stores over the last 12 months to bring the total count to 43 on Sep. 30. Nike Value Stores generated 87.4 percent sales growth in Q3 to R$351.4 million (€66.8m) and represented more than 40.6 million sqm of retail space.
