E-Commerce and B2C channels drive Veste's Q3 2026 profitability gains

Brazilian high-end apparel and accessories group Veste S.A. Estilo (Veste) reported continued profitability gains in the third quarter of 2026, covering the period from July 1, 2026 to September 30, 2026. Adjusted net income rose 62.2 percent year-over-year (YoY) to 15.3 million Brazilian reais (2.71 million dollars), while adjusted net margin expanded by 1.7 percentage points to 4.7 percent.

Consolidated adjusted net revenue increased 4.5 percent YoY to 326.2 million Brazilian reais, bringing nine-month adjusted net revenue to 986.1 million Brazilian reais, up 9.1 percent. Adjusted gross profit reached 216.8 million Brazilian reais in the third quarter, marking an 8.2 percent YoY increase, with adjusted gross margin rising 2.3 percentage points to 66.5 percent.

EBITDA grew 10 percent YoY to 74.5 million Brazilian reais. The adjusted EBITDA margin expanded by 1.1 percentage points to 22.8 percent, marking the fifth consecutive quarter of margin expansion for the company.

Direct-to-consumer and digital channels drive growth

Sales in the business-to-consumer (B2C) channel totalled 278.2 million Brazilian reais in the third quarter, up 4.6 percent YoY, with full-price sales accounting for 88 percent of the channel. Brick and mortar B2C revenue edged up 0.8 percent to 196 million Brazilian reais, achieving consolidated same-store sales (SSS) growth of 1.1 percent against a high comparison base of 13.5 percent in the prior-year period.

E-commerce within the B2C segment rose 14.9 percent YoY to 82.2 million Brazilian reais, representing 21.1 percent of total gross revenue.

Business-to-business (B2B) revenue declined 5.4 percent YoY to 80.2 million Brazilian reais due to lower sales at menswear label Individual, though B2B gross margin improved by 4.3 percentage points across the portfolio. The outlets channel generated 31.6 million Brazilian reais, an increase of 12.7 percent YoY.

Brand performance and capital structure

Flagship womenswear brand Le Lis recorded third-quarter gross revenue of 194.3 million Brazilian reais, up 4.9 percent YoY, ending the period with 77 company-owned stores. Dudalina posted 62.9 million Brazilian reais in revenue, a 0.6 percent YoY increase, supported by a 5.2 percent rise in physical SSS.

Denim-focused brand John John grew 2.1 percent YoY to 44 million Brazilian reais, while womenswear label Bo.bô increased 6.8 percent to 41.3 million Brazilian reais. Individual saw gross revenue fall 25.5 percent YoY to 16 million Brazilian reais, though its B2B gross margin rose 3.8 percentage points.

Veste closed the third quarter with 195 stores in operation, comprising 172 company-owned locations and 23 franchises.