Veste reports highest Q2 net income in seven years

Brazilian high-end fashion retailer Veste S.A. Estilo (Veste) has reported its financial results for the second quarter of 2026 (Q2), posting its highest net income for the period in seven years. The São Paulo-based group recorded an adjusted net income of 30.7 million reais (5.93 million dollars), marking an 80.5 percent increase compared to 17 million reais in Q2 2025.

For the first six months of 2026, adjusted net income rose by 548.6 percent to reach 42.1 million reais, up from 6.5 million reais during the same period last year. Adjusted net revenue reached 353.2 million reais, representing a 9.5% percent increase over Q2 2025. Adjusted EBITDA rose 19.1 percent to 89.8 million reais, while the adjusted EBITDA margin expanded by 2.1 percentage points to 25.4 percent. Like-for-like (LFL) sales grew 7.4 percent across the group's retail operations during the quarter.

Channel performance and full-price strategy

Direct-to-consumer (D2C) sales rose 10.3 percent to 341.9 million reais in Q2 2026. Full-price sales accounted for 86 percent of total D2C turnover, supporting gross margin expansion. Adjusted gross profit reached 237.4 million reais, up 14.3 percent, driving the adjusted gross margin up by 2.9 percentage points to 67.2 percent.

The D2C digital channel expanded 19.6 percent during the quarter to reach 88 million reais, representing 20 percent of total group turnover. Wholesale revenue (B2B) grew 6.4 percent to 65 million reais, whereas outlet channel turnover dropped 6 percent to 26.1 million reais.

Brand breakdown

Le Lis: Revenue grew 11.5 percent to 237.2 million reais, supported by a 7.2 percent increase in LFL sales.

Bo.Bô: Revenue increased 30.9 percent to 46.2 million reais, driven by strong LFL sales growth of 23 percent.

Dudalina: Turnover rose 7.4 percent to 64.2 million reais, with LFL sales up 4.1 percent.

John John: Revenue declined 1.8 percent to 45.8 million reais, with LFL sales contracting 2.6 percent due to a decision to reduce markdowns.

Individual: Revenue fell 17.8 percent to 13.6 million reais, though cost control efforts improved the brand's B2B gross margin by 6.2 percentage points.

Veste ended Q2 2026 with a network of 193 store locations, comprising 160 brand-owned stores, 10 outlet locations, and 23 franchises.