Beyond difficult local economic conditions and subdued consumer sentiment, Vulcabras faced a tax issue with subsidiaries and a flooding tragedy in the state of Rio Grande do Sul that impacted 3.4 million people and killed 179. The Brazilian group confirmed that it remains committed to helping the region recover in what’s expected to be a long-term process.
Ebitda rose by 3.5 percent to 175.4 Brazilian reais (€28.5m), but Ebitda margin slipped by 40 basis points to 23.0 percent in Q2 ended June 30. Net income inched up by 0.5 percent to R$139.7 million (€22.7m) from R$139.0 million. Gross margin grew by 110 basis points to 42.5 percent from 41.4 percent.
Total Q2 net revenues increased by 5.1 percent to R$761.0 million (€123.5m) from R$723.9 million as sales generated in Brazil rose by 8.6 percent to R$723.5 million (€117.4m) but tumbled by 35 percent in all other markets to R$37.5 million (€6.1m). Athletic footwear sales decreased by 2.2 percent to 5.29 million units, though there was a 1.5 percent increase in Brazil. Apparel and accessories units, meanwhile, increased by 8.9 percent in Q2 to 1.67 million, with the gain largely attributable to the online segment.
