Veste posts 8 percent revenue growth in Q2

Brazilian clothing and accessories company Veste S.A. Estilo reported second quarter gross revenue of 360 million Brazilian real, up 8 percent.

The company said in a release that the company achieved its ninth consecutive positive quarter of same store sales with an increase of 12.5 percent.

Operational highlights of Veste’s Q2 results

gross margin for the quarter of 67.7 percent, was up 3.4 p.p., adjusted EBITDA of 65.3 million Brazilian real, increased 19.6 percent, adjusted EBITDA margin of 22.6 percent, rose 2.3 p.p. and adjusted net income reached 27.2 million Brazilian real, with a net margin of 9.4 percent.

Gross revenue of the B2C channel of 281.3 million Brazilian real, increased 8.1 percent despite a reduction in the store base of 10.4 percent in the period. B2C digital sales, with gross revenue of 54.7 million Brazilian real, jumped 42.2 percent and omnichannel revenue totaled 80.6 million Brazilian real in the quarter and represented 22.4 percent of the company's total sales.

Outlets channel operating under the Estoque brand delivered gross revenue of 23.5 million Brazilian real in the quarter, with a stable sales level up 0.3 percent versus the second quarter of 2022. There was a decrease of 12.1 percent in sales in physical stores, totaling 18.2 million Brazilian real, while Estoque website achieved a 93.3 percent growth in the period, recording 5.3 million Brazilian real in sales.

Veste’s performance across brand portfolio

The company’s Le Lis brand achieved sales of 178.8 million Brazilian real in the second quarter, up 14 percent. With a strong Mother’s Day, the brand achieved a same store sales (SSS) growth of 16 percent in the quarter. The company added that in the number of doors served, growth was 5 percent, with an increase in sales revenue of 19.9 percent.

With gross revenue of 56.4 million Brazilian real, up 4.4 percent and same store sales growth of 12.5 percent, Dudalina launched campaigns this quarter to attract its target audience and strengthen its positioning.

John John achieved gross revenue of 52 million Brazilian real, a decrease of 12.6 percent, while the brand’s year-to-date sales reached 113.3 million Brazilian real, a decrease of 2.5 percent in comparison to the first half of last year.

Bo.Bo recorded 31.2 million Brazilian real in gross revenue, an increase of 36.4 percent and year-to-date, the brand delivered revenues of 59.6 million Brazilian real, a growth of 42 percent. The brand’s same-store-sales reached 37.9 percent in this quarter, while e-commerce increased by 17.2 percent.

In the quarter, Individual sales increased 48.1 percent to reach 19.2 million Brazilian real.