Quarterly and annual results at the Brazilian group Vulcabras group were driven by 13.1 percent sales growth within its athletic footwear division and 104 percent annual revenue expansion for its e-commerce segment to 279.8 million Brazilian reais (€51.6m).
Fourth quarter Ebit fell by 1 percent to R$152.5 million (€28.1m) despite 7.1 percent sales growth to R$791.3 million (€145.8m) for the period ended Dec. 31. Athletic footwear sales increased by 7.8 percent to R$670.6 million (€123.6m), and apparel/accessories segment revenues rose by 15.5 percent to R$67.9 million (€12.5m). Other footwear sales, due to a decline in flip-flop sales in both Brazil and other markets, declined by 8.5 percent to R$52.8 million (€9.7m). Meanwhile, an interruption in shipments to Argentina contributed to a nearly 53 percent drop in international market sales to R$23.3 million (€4.3m). Period sales inside Brazil increased by 11 percent to R$768.0 million (€141.5m). Gross margin improved by 440 basis points to 42.7 percent from 38.3 percent. Net income fell by 32.5 percent to R$144.7 million (€26.7m).
For the full year, Ebit increased by 22 percent to R$542.5 million (€100.0m) on 11 percent total sales growth to R$2.82 billion (€519.3m) from R$2.54 billion. Gross margin grew by 470 basis points to 41.7 percent from 37.0 percent, and net income was 5.3 percent higher year-over-year at R$494.9 million (€91.2m). Sales made in Brazil increased by nearly 15 percent to $2.65 billion (€488.6m) but declined by 27.0 percent in all other markets to R$166.4 million (€30.7m), again impacted by economic and exchange rate instability in Argentina.
