Release
3Q24
Conference Call
Date:
November 13, 2024
Time:
10:00 a.m. (Brasília) 8:00 a.m. (New York)
CEO:
Alexandre Afrange
IRO:
Elisa Bastos de Lima
IR Coordinator:
Nicolas Costa
Investor Relations:
ri@veste.com
JOHN JOHN
São Paulo, Brazil, November 12, 2024. Veste S.A. Estilo ("Company"; B3:VSTE3), a company acting in the high-end clothes and accessories segment in Brazil, hereby submits its results for the third quarter of 2024 (3Q24), pursuant to the International Financial Report Standards (IFRS).
W W W.V E S T E . C O M
BO.BÔHighlights
Highlights
In the third quarter of 2024, Veste recorded a gross revenue of BRL 329.2 million, a decrease of 2.7% compared to the same period of the previous year. This performance is mainly explained by the B2B channel, which showed a drop of 16.5% and by the John John brand, which, amid a repositioning, operated with 10 fewer stores compared to 3Q23. The quarter's results were also partially impacted by supply challenges at the Le Lis and BO.BÔ brands, which were largely addressed but still limited growth.
The reversal of the trajectory of the John John brand and the B2B channel is a short-term priority for Veste and represents an important growth opportunity in the medium term. In the fourth quarter of 2024, the first results of the actions taken by the company to achieve this goal will already be evident.
Within the channels and brands with more consolidated strategies, we continue to present consistent results. The Le Lis brand stood out with a growth of 5.6%, with an increase in same store sales of 6.8%. The Company's consolidated same store sales were 1.9% compared to 3Q23, negatively affected by John John's performance, but maintaining the continued retail growth, with the fourteenth consecutive quarter in which this indicator was positive.
In addition, the Company has maintained strict control of operating expenses, which showed a slight reduction of 0.2% compared to 3Q23. This financial discipline is key, and we are confident that the actions underway will deliver positive results in the future, aligning with Veste's commitment to profitable and sustainable growth.
Financial
- Gross revenue of BRL 329.2 million in the quarter, -2.7% compared to 3Q23
- Adjusted gross margin of 62.7%, -0.7 p.p. compared to 3Q23
- Adjusted EBITDA of BRL 44.0 million, -12.1% compared to 3Q23
- Adjusted EBITDA margin of 16.4%, -1.8 p.p. compared to 3Q23
Operational
- Growth in B2C Digital sales, +6.8% compared to 3Q23
- Consolidated same store sales of 1.9% compared to 3Q23, the fourteenth consecutive quarter of increase in this indicator. Considering the brands Le Lis, Dudalina and BO.BÔ, the indicator was 4.5%
- Sales revenue per store reached BRL 1.4 million, +4.4% compared to 3Q23
- Share of full-price sales in the B2C channel of 85% in the quarter
- Reduction of inventories (-10.5% compared to 3Q23), with efficiency in the management and sell- through of collections
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JOHN JOHN
Main Indicators
Income Statement
Income Statement | 3Q23 | 3Q24 | Var. % | 9M23 | 9M24 | Var. % |
R$ in thousands | ||||||
Gross revenue | 338,302 | 329,176 | -2.7% | 1,019,517 | 1,013,703 | -0.6% |
Adjusted net revenue | 274,528 | 268,005 | -2.4% | 827,976 | 812,748 | -1.8% |
Adjusted gross profit | 174,257 | 168,132 | -3.5% | 539,157 | 516,881 | -4.1% |
Adjusted gross margin % | 63.5% | 62.7% | -0.7p.p | 65.1% | 63.6% | -1.5p.p |
Adjusted EBITDA | 50,092 | 44,012 | -12.1% | 163,041 | 155,633 | -4.5% |
Adjusted EBITDA margin % | 18.2% | 16.4% | -1.8p.p | 19.7% | 19.1% | -0.5p.p |
Adjusted net income | 2,533 | (9,999) | n.a. | 36,326 | 1,060 | -97.1% |
Adjusted Net margin % | 0.9% | -3.7% | -4.7p.p | 4.4% | 0.1% | -4.3p.p |
* Details of the adjustments in the "Period Adjustments" section on page 19
Gross Revenue, Breakdown per Channel and Brand
Gross Revenue | 3Q23 | 3Q24 | Var. % | 9M23 | 9M24 | Var. % |
R$ in millions | ||||||
Sales Channel | 338.3 | 329.2 | -2.7% | 1,019.5 | 1,013.7 | -0.6% |
Per Channel | ||||||
B2C | 237.3 | 234.7 | -1.1% | 743.6 | 756.9 | 1.8% |
Physical Stores | 184.4 | 178.2 | -3.3% | 587.5 | 583.3 | -0.7% |
Digital | 52.9 | 56.5 | 6.8% | 156.0 | 173.6 | 11.3% |
B2B | 77.9 | 65.0 | -16.5% | 214.4 | 180.5 | -15.8% |
Outlets | 23.1 | 29.4 | 27.5% | 61.5 | 76.3 | 23.9% |
Physical Stores | 20.1 | 17.6 | -12.6% | 50.3 | 55.3 | 10.1% |
Digital | 2.9 | 11.8 | 304.6% | 11.3 | 20.9 | 85.5% |
Per Brand | ||||||
Le Lis | 148.9 | 157.3 | 5.6% | 473.1 | 503.3 | 6.4% |
John John | 58.4 | 41.5 | -29.0% | 171.7 | 127.9 | -25.5% |
Dudalina | 57.2 | 56.5 | -1.3% | 167.5 | 171.1 | 2.2% |
BO.BÔ | 28.7 | 28.3 | -1.6% | 88.3 | 91.6 | 3.7% |
Individual | 22.4 | 17.1 | -23.6% | 58.5 | 45.5 | -22.3% |
Outlets | 23.1 | 29.4 | 27.5% | 61.5 | 76.3 | 23.9% |
Others | (0.4) | (0.8) | 105.3% | (1.1) | (1.9) | 76.9% |
Breakdown per Brand | Breakdown per Channel |
8.9% | 8.9% | |||
5.2% | ||||
8.6% | 19.8% | |||
47.7% | 54.1% | |||
12.6% | ||||
17.2% |
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17.1%
DUDALINA
Channels & Brands
B2C Channel
The Company's B2C Channel closed the quarter with revenues of BRL 234.7 million, a decrease of 1.1% compared to 3Q23. This result was mainly impacted by the performance of the John John brand, which showed a 20.5% drop in the channel. In 2024, the channel grew 1.8% compared to 9M23.
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Full-price sales remain the focus of Veste's strategy and stood at 85% of B2C sales, a balanced level similar to the same period of the previous year.
Same Store Sales
The same store sales indicator grew 1.9% compared to 3Q23. Considering only the Le Lis, Dudalina and BO.BÔ brands, the indicator for the period was 4.5%. The table below shows the same store sales per brand and consolidated:
Same Store Sales | 3Q24 vs. 3Q23 | 9M24 vs. 9M23 |
B2C | ||
Le Lis | 6.8% | 6.8% |
Dudalina | 0.6% | 4.8% |
John John | -15.0% | -14.4% |
BO.BÔ | -2.5% | 6.4% |
Consolidated | 1.9% | 3.5% |
Number of Stores
The Company ended the quarter with 172 stores, with 163 single-brand stores and 9 outlet stores. Below is the table by brand and consolidated:
Brand Stores | 3Q23 | 3Q24 | vs. 3Q23 | 2Q24 | vs. 2Q24 |
Physical Stores | 172 | 163 | (9) | 166 | (3) |
Le Lis | 73 | 73 | - | 72 | 1 |
John John | 44 | 34 | (10) | 38 | (4) |
Dudalina | 38 | 40 | 2 | 40 | - |
BO.BÔ | 16 | 16 | - | 16 | - |
Individual | 1 | - | (1) | - | - |
Estoque stores | 9 | 9 | - | 9 | - |
Clients
The Company's active customer base closed the quarter with 562 thousand customers, a variation of -2.1% compared to 3Q23. There was a gain in hybrid customers, which have a higher recurrence in the Company's sales channels, growing 6.2% compared to 3Q23 and representing 9.0% of the total active base. Reinforcing the good momentum of the Le Lis brand, its active base grew by 4.0% in the same period.
Digital Sales
Digital B2C
Digital B2C reached revenues of BRL 56.5 million, +6.8% compared to 3Q23. In 9M24, the channel grew 11.3% compared to the same period in 2023.
The profitability of Digital B2C remains robust, even in markdown periods. The channel had a higher EBITDA margin (+2.5 p.p. compared to 3Q23), with emphasis on Dudalina, which operated with lower levels of markdowns compared to the previous year. This performance reflects efficient management and a traffic qualification that raised the conversion rate. Now, following the channel's strate- gy, investments are being made in the acquisition of new customers, B2C and B2B, with multi-brand customers being attracted by the greater reach of the brands in new markets.
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During the quarter, the Dudalina and Individual apps were launched, expanding the contact with the brands' customers. The John John app performed well, accounting for 21.4% of the brand's online sales in September. In the total of the quarter, sales through apps corresponded to 11.7% of online sales of these brands.
Omnichannel Tools
In the third quarter, the Company's digital sales reached a revenue of BRL 112.4 million, registering a growth of 40.3% compared to 3Q23. We highlight the sales platform in the B2B channel, a tool that is part of the ongoing technological evolution in the channel and which grew 94.5%, and the Infinite Shelf modality in the B2C channel, which grew 25.2% compared to 3Q23.
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