After a weak first quarter, Vulcabras enjoyed a 16.5 percent increase in total revenues to 327.0 million Brazilian reais (€71.0m-$78.7m) in the second one, with gains of 12.3 percent in athletic footwear to R$ 239.4 million (€52.0m-$57.6m) and 14.4 percent in women's shoes to R$ 47.0 million (€10.2m-$11.3m). Sales of apparel and accessories jumped by 341.3 percent to R$ 662 million (€143.7m-$159.2m). Additional revenues came from the company's work boot business and other activities.
The start of Under Armour's distribution in Brazil contributed to the growth in the athletic footwear and apparel segments, but the bulk of the turnover came from Olympikus, the biggest sports brand in the country in terms of volume. Exports declined by 23.7 percent, representing only 8.1 percent of the total turnover.
The gross margin improved by 0.4 percentage points to 34.4 percent during the quarter, as compared to the year-ago period, following a similar trend observed in the first quarter. The quarterly Ebitda margin improved by 0.3 percentage points to 15.7 percent, in spite of an increase in advertising and marketing expenses to 5.1 percent of the turnover, as Vulcabras continued to reduce selling and general and administrative expenses. It reached 16.4 percent for the whole first half of this year.
However, the company's quarterly net income declined by 9.1 percent to R$ 30.0 million (€6.5m-$7.2m). The decline for the first half was steeper, resulting in a net profit margin of 11.6 percent for the period.