Veste reports 2.7 percent drop in Q1 revenue

Veste, a company in the high-end clothes and accessories segment in Brazil, reported gross revenue of 312.6 million Brazilian real in the first quarter, down 2.7 percent.

The company’s adjusted gross profit of 158.2 million Brazilian real, declined 6.8 percent with adjusted gross margin of 62.9 percent, down 1.1 p.p. First quarter adjusted EBITDA of 44.4 million Brazilian real, decreased 6.8 percent with adjusted EBITDA margin of 17.7 percent, down 0.3 p.p., while adjusted net profit was 0.4 million Brazilian real.

Highlights of Veste's Q1 results

The company said in a release that B2C channel revenue in the quarter was 230.4 million Brazilian real, an increase of 2.4 percent, while the same store sales growth for the period was 6.9 percent. The company ended the quarter with 175 stores, 167 of which are full-price mono-brand stores and eight are outlets.

Restoque’s digital B2C sales were 53.2 million Brazilian real, an increase of 9.8 percent, while digital sales reached 86.3 million Brazilian real, an increase of 24.1 percent compared to the first quarter of 2023.

The B2B channel ended the quarter with gross revenue of 62.5 million Brazilian real, a drop of 23.2 percent, while operating under the Estoque banner, the outlet channel recorded gross revenue of 19.8 million Brazilian real, up 32 percent.

Veste reports decline in John John sales

By brand, Le Lis had a gross revenue of 151.5 million Brazilian real, an increase of 4.2 percent with same store sales growth of 4.8 percent in the period. Dudalina recorded gross revenue of 53.6 million Brazilian real, declining marginally by 0.5 percent versus the same quarter last year.

The company added that John John revenue in the period of 41.4 million Brazilian real, declined 32.4 percent due to the B2B channel. Bo.Bo recorded gross revenue of 30.9 million Brazilian real in the quarter, an increase of 8.7 percent, while same store sales growth was 14.1 percent.

Brand Individual recorded gross revenue of 16.3 million Brazilian real, a drop of 3.9 percent against the first quarter of 2023.