Veste records strongest first quarter net income in seven years

The Brazilian high-end apparel group Veste S.A. Estilo (Veste) has released its financial results for the first quarter of 2026, ending March 31, 2026. The company, which operates a portfolio of premium brands including Le Lis, Dudalina, and Bo.bô, recorded a net income of 11.40 million Brazilian reals (2.27 million dollars).

This performance represents a significant reversal from the 10.50 million Brazilian reals loss reported in the first quarter of 2025. According to the group, this result marks its best first quarter performance in the past seven years, reflecting a net margin of 3.7 percent.

Revenue growth driven by full price sales

Adjusted net revenue for the period reached 306.63 million Brazilian reals, a 14.1 percent increase compared to the same period last year. This growth was supported by a strong performance in the direct-to-consumer (D2C) channel, which saw revenue rise 12.7 percent to 267.30 million Brazilian reals.

The company highlighted its continued focus on full price sales, which accounted for 71 percent of D2C sales. This strategy contributed to an expansion in adjusted gross margin, which rose by 1.9 percentage points to 64.8 percent. Adjusted gross profit for the quarter totaled 198.75 million Brazilian reals.

Operational efficiency and brand performance

Veste reported a robust 46.2 percent increase in EBITDA, reaching 68.43 million Brazilian reals. The EBITDA margin expanded by 4.9 percentage points to 22.3 percent, driven by disciplined expense management and operational efficiency. Same-store sales (SSS) across the group increased by 11.7 percent.

Le Lis, the flagship brand representing 50 percent of group revenue, saw sales grow 13.9 percent to 184.20 million Brazilian reals. Bo.bô recorded the highest growth rate among the portfolio, with revenue increasing 30.7 percent to 40.20 million Brazilian reals. Dudalina revenue rose 3 percent to 59.50 million Brazilian reals as the brand undergoes a repositioning project. John John revenue reached 43.70 million Brazilian reals, a 7.7 percent increase, bolstered by a 22 percent growth in its jeanswear category. Individual saw a 7 percent revenue increase to 17.50 million Brazilian reals.

Digital strategy and physical expansion

The digital D2C channel performed strongly, with revenue growing 22.5 percent to 76.40 million Brazilian reals. Veste chief executive officer Alexandre Afrange and chief financial officer Elisa Bastos de Lima oversaw the expansion of the digital footprint, noting that mobile apps for all brands were fully operational during the quarter.

In the brick and mortar segment, the company inaugurated four new stores for Le Lis, Dudalina, John John, and Bo.bô at Morumbi Shopping in São Paulo in March 2026.