Key brands drive Veste's third quarter growth

Veste S.A. Estilo, one of Brazil’s leading premium clothing and accessories groups, reported strong third-quarter results for 2025, marked by double-digit revenue growth, expanding margins, and continued operational momentum across its portfolio of brands.

The company posted gross revenue of 378.9 million real (71.6 million dollars) in the third quarter, an increase of 15.1 percent compared with the same period last year, driven by solid performances in the B2C and B2B channels.

Adjusted EBITDA surged 53.8 percent to 67.7 million real, with margin improvement of 5.3 percentage points to 21.7 percent and a 1.4 p.p. expansion in adjusted gross margin to 64.1 percent. Adjusted net income reached 9.4 million real, reversing the loss recorded in the third quarter of 2024.

The B2C channel delivered gross revenue of 266 million real, up 13.3 percent year over year, supported by consistent growth in both physical stores and e-commerce. Full-price sales accounted for 88 percent of the channel’s performance. Same store sales rose 13.5 percent, with standout gains from Le Lis (15.3 percent) and BO.BÔ (31.2 percent).

Digital sales continued to be a major growth driver, with total digital revenue increasing 34.4 percent and digital penetration reaching 37 percent of company sales in the first nine months of 2025. Digital B2C revenue alone grew 26.7 percent in the quarter, boosted in part by the launch of the new Le Lis app, which completed the rollout of mobile apps across all brands.

The B2B channel also accelerated, posting 84.8 million real in gross revenue, up 30.4 percent supported by portfolio improvements and stronger execution. Dudalina and John John led the wholesale momentum, advancing 29.3 percent and 28.1 percent respectively. The outlet channel posted a decline of 4.6 percent due to last year’s one-off clearance actions. Across brands, Le Lis grew 17.7 percent, BO.BÔ jumped 36.7 percent, and Individual climbed 25.4 percent, benefiting from assortment optimisation and improved margins.

The company ended the quarter with 187 stores, including 18 franchises, four of which were opened during the quarter under review, primarily supporting Dudalina’s expansion strategy.