Vulcabras’ net income soared by 270 percent to 54.0 million Brazilian reais (€9.2m) in the first quarter of 2022. Operating earnings (Ebit) jumped by 203 percent to R$64.4 million (€10.9m) in the period ended March 31, as the gross margin increased by 1.2 percent to 35.2 percent versus 34.0 percent a year earlier despite some elevated raw material costs and higher absenteeism rates.
The quarterly revenues were 53 percent higher in local currency to R$477.75 million (€81.3m) from R$311.9 million, bolstered by 51 percent growth in athletic footwear sales to R$390.5 million (€66.4m) and by a 144 percent increase in apparel/accessories sales to R$48.8 million (€8.3m). The number of pairs of athletic shoes produced increased by 26 percent, and the number of apparel/accessories produced was 84 percent higher than the previous year. During the period, Vulcabras began selling its first fully developed Mizuno footwear collection. Women’s footwear revenues improved 27 percent to R$11.4 million (€1.9m) due to higher sales by a subsidiary in Peru. The other footwear segment realized a 10 percent sales increase to R$27.0 million (€4.6m) on strength in Olympikus and Under Armour branded slippers that was offset by lower sales of professional boots.
E-commerce revenues increased 245 percent to R$22.8 million (€3.9m) from R$6.6 million, helped by Vulcabras taking over its logistics operation and reducing the average delivery time to 2.4 days from 5 days when the business was outsourced. Geographically, sales inside Brazil were up 47 percent to R$411.7 million (€70.0 million) versus R$280.5 million. Meanwhile, sales outside Brazil jumped 110 percent to R$66.0 million (€11.2m).
Mizuno launched two models of its 11th edition Wave Prophecy during the first quarter besides its first collection developed by Vulcabras. In January, Under Armour brought a second colorway of the Curry Flow 9 to Brazil, launched on the brand’s website and Sunikã for R$1,099.99 (€187.11). Olympikus launched the market’s first running shoe with a graphene plate, the Olympikus Corre Grafeno.
