Brazilian apparel group Veste posts 10.4 percent revenue increase in 2025

Brazilian high-end apparel group Veste, which operates a portfolio including Le Lis and Dudalina, has consolidated its business model following a year of strategic execution and improved operational discipline. The company reported net revenue of 1.24 billion Brazilian reals (0.24 billion dollars) for the full year 2025, representing a 10.4 percent increase compared to 2024.

For the fourth quarter of 2025, net revenue reached 338.90 million Brazilian reals, up 8.4 percent against the same period in the prior year. Consolidated same store sales, increased by 10.7 percent in the quarter and 9 percent for the full year.

According to Veste chief executive officer, Alexandre Afrange, the results reflect a year "marked by the consolidation of a business model that is now capable of growing, protecting margins, and generating cash".

Profitability and margin expansion

The group's adjusted EBITDA reached 266.70 million Brazilian reals in 2025, a significant 18.6 percent increase compared to the previous year. This growth resulted in an EBITDA margin of 21.5 percent, an expansion of 1.5 percentage points.

Adjusted net income for the year totaled 33.20 million Brazilian reals, surging 133.9 percent from the 16.20 million Brazilian reals recorded in 2024. The company attributed these gains to commercial discipline, a better product mix, and a higher share of full-price sales.

In the direct-to-consumer (D2C) channel, which includes physical stores and websites, full-price sales accounted for 81 percent of total revenue in 2025. This discipline helped maintain an adjusted gross margin of 63.9 percent for the full year.

Brand performance and strategic pillars

Le Lis remains the primary value-generation pillar for the group, delivering annual sales growth of 11.6 percent. Bo.Bô recorded the highest growth among the brands, with an annual increase of 14.8 percent and consistent margin expansion.

Dudalina saw revenue increase by 5.2 percent in 2025, supported by the opening of 15 franchise stores during the year. The brand also successfully reduced its inventory by 43 percent compared to December 2023 levels.

John John reported 2.1 percent growth, focusing on operational efficiency and brand positioning throughout what management described as a stabilization year. Individual recorded 8.7 percent annual growth, driven by its business-to-business (B2B) strategy.

The group completed a full migration of its E-commerce operations to the VTEX platform in 2025, enabling greater scalability. Digital D2C revenue grew by 21.3 percent for the year, with mobile applications now accounting for 24.3 percent of total digital sales.