Veste reports 2022 same store sales growth of 32.1 percent
In 2022, total gross sales revenue at Veste S. A. was 1.3 billion Brazilian real, a 20.3 percent growth compared to 2021. Same store sales (SSS) showed an increase of 32.1 percent in the year, and 8.5 percent in the fourth quarter of 2022.
The company said in a release that B2C and B2B channels had a growth of 23.2 percent and 37.8 percent, respectively, when compared to 2021.
In the fourth quarter, the company’s sales revenue were 347.6 million Brazilian real down 3.5 percent versus 4Q21, with growth in the B2C and B2B channels of 0.7 percent and 2.8 percent, respectively, while the outlets channel declined by 41.4 percent.
“I am very thrilled and proud to share the results for 2022, a transformational year and of paramount importance for the company’s history, when the company adjusted its capital structure and presented consistent operational results,” said Alexandre Afrange, CEO, Veste S.A.
Review of Veste’s financial performance
The company’s e-commerce revenue grew 29.4 percent, while e-commerce orders and the average ticket increased 29.1 percent and 3.4 percent vs. 4Q21.
Digital tools, represented by the B2C digital, omnichannel ecosystem and the Estoque website closed the year with gross sales revenue of 287.3 million Brazilian real, a growth of 17.3 percent and representing 21.8 percent of the company’s total sales. In 4Q22, there was a highlight for the increase in sales revenue in the Infinite Shelf modality of 91.9 percent, while aligned with the strategy of full-price sales and lower surplus collections the Estoque website reduced its sales revenue in this same period by 6.6 percent.
The adjusted gross profit recorded in the period was 186.8 million Brazilian real, with 8 percent growth vs. 4Q21 and an improvement in the gross margin, reaching 67.3 percent, 7.1 p.p. higher than in 4Q21. Adjusted EBITDA in the period was 60.8 million Brazilian real with an EBITDA margin of 21.9 percent, 28.8 percent and 5.5 p.p. higher than 4Q21, respectively.
Highlights of Veste’s results across core brands
Le Lis obtained gross sales revenue of 159.6 million Brazilian real in the quarter, a 7 percent growth compared to 4Q21. In 2022, the gross sales revenue registered was 579 million Brazilian real, an increase of 30.1 percent versus 2021.
The company said that the stores reopened in the second quarter in Iguatemi, JK Iguatemi and Alphaville Iguatemi malls, achieved same store sales of 56.4 percent, 40.1 percent and 41.1 percent versus the same period in 2021, respectively.
Dudalina’s gross sales revenue of 56.2 million Brazilian real in the quarter, reduced 10 percent, while 2022 gross sales revenue of 226.6 million Brazilian real, increased 19.6 percent versus 2021. The company’s same store sales were 11.6 percent versus 4Q21 and the 150.4 percent increase in net revenue per square metre in the period.
John John gross sales revenue of 64.2 million Brazilian real in the quarter, reduced 3.7 percent and in 2022, the gross sales revenue of 252.6 million Brazilian real, increased 22.9 percent versus 2021. The brand’s B2B Channel performed well, with sales up 22.1 percent.
Bo.Bo obtained gross sales revenue of 27.5 million Brazilian real in the quarter, an increase of 26.2 percent and in 2022, gross sales revenue of 94.6 million Brazilian real, an increase of 40.7 percent. The brand’s active customer base increased by 9.1 percent during the quarter.
Individual brand gross sales revenue of 16.9 million Brazilian real in the quarter, increased 3.5 percent and 2022 gross sales revenue of 70.9 million Brazilian real increased 30.7 percent.