Brazilian firm Arezzo’s revenue soars 12.7% in Q3 FY23

Arezzo, a Brazilian footwear, bags, and accessories manufacturer, has reported gross revenues of R$1.6 billion in the third quarter of fiscal 2023 (Q3 FY23), marking a 12.7 per cent increase from the third quarter of the previous year. This follows an even more robust growth of 18.7 per cent in the first nine months of FY23 compared to the same period in FY22.

The retailer’s gross margin stood strong at 53.8 per cent in Q3 FY23, a boost of 100 basis points (bps), with a gross profit of R$681 million, escalating by 13.2 per cent. The domestic market outperformed with a recurring gross margin of 55 per cent, up 240 bps, and a recurring EBITDA margin increase of 370 bps to 19.8 per cent, the company said in a press release.

Brazil-based footwear company Arezzo reported a 12.7 per cent revenue increase to R$1.6 billion in Q3 FY23, with a notable rise in gross margin and EBITDA.
The company’s active customer numbers grew to 5.5 million, and digital sales surged, indicating strong omnichannel and DTC performance.
Net income was reported at R$114 million in Q3 FY23.

Arezzo’s EBITDA reached R$218 million, representing a 27.9 per cent rise compared to Q3 FY22, and an EBITDA margin expansion of 230 bps to 17.2 per cent. The recurring EBITDA for the nine months of FY23 was R$580 million, up by 24.4 per cent.

The company’s customer base in Q3 FY23 expanded to 5.5 million active customers, a significant increase of 9.2 per cent versus Q3 FY22.

Direct-to-consumer (DTC) sales soared to R$1.1 billion in Q3 FY23, driven by franchises, web, and owned stores, showcasing a growth of 16.6 per cent compared to Q3 FY22. Net income was reported at R$114 million.

The company’s digital footprint saw significant expansion, with web commerce sales reaching R$331 million, up by 18.8 per cent from Q3 FY22. Long-term total revenues grew by 23.6 per cent, with traffic up by 3.9 per cent. Revenue from apps reached R$84 million, an increase of 15.6 per cent from the previous year, accounting for a quarter of the total revenues.

Omnichannel sales were robust in Q3 FY23, with a digital share of physical store sell-out reaching 60.1 per cent. The store pickup and delivery revenues shot up by 50.8 per cent. The company made 16.5 million contacts via its app in Q3 FY23, influencing revenues significantly.

The customer relationship management (CRM) system played a pivotal role, with the active customer base growing by 9.2 per cent and the number of omni customers increasing by 9.5 per cent. Of the total customer base, 35.4 per cent shopped online, and 11.3 per cent were categorised as omni.

Fibre2Fashion News Desk (DP)


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