The Brazilian Vulcabras group, which produced double-digit Q2 gains in revenues, gross margin and net profit, was aided by a 14.2 percent increase in market-produced footwear to 608.2 million Brazilian reais (€112.8m). Overall, Ebit expanded by 40 percent to R$148.1 million (€27.5m) as year-over-year gross margin increased by 540 basis points to 41.4 percent. Ebitda pushed 27 percent higher to R$144.9 million (€26.9m). Net income increased by 34 percent to R$139 million (€25.8m) for the period ended June 30.
Total Q1 revenues expanded by 10 percent to R$723.9 million (€134.4m) from R$656.8 million despite a 1 percent decline in Other footwear to R$54.0 million (€10.0m) due to a drop in flip flop sales to other international markets. Sales generated in the group’s home Brazilian market rose by 13.7 percent to R$666.2 million (€123.6m) as all brands and categories grew. The e-commerce channel more than doubled its year-over-year sales to R$57.1 million (€10.6m). Meanwhile, direct sales to other markets, primarily Argentina and Peru, fell by 18.5 percent to R$57.7 million (€10.7m) due to persistent economic issues in Peru and local distributors having difficulty obtaining import licenses in Argentina.
The Apparel/Accessories segment, faced with a more challenging retail environment and a milder winter, suffered an 11.7 percent sales drop to R$61.9 million (€11.5m). Olympikus and Under Armour sales each declined by an unspecified percentage.
Through H1, Vulcabras has sold nearly 9.5 million pairs of athletic footwear, up 4.0 percent year-over-year, but seen its apparel/accessories unit volume decline by 6.9 percent over the same period to slightly more than 3.1 million pieces.
