Veste reports strong Q2 driven by B2B and digital growth

Veste S.A. Estilo, a high-end clothing and accessories company from Brazil, has released its financial results for the second quarter of 2025, reporting growth across its key metrics. The company's gross revenue for the quarter reached 398.8 million Brazilian real, marking a 7.2 percent increase compared to the same period in 2024. This was supported by a 15 percent growth in its B2C digital channel and a 15.3 percent increase in its B2B channel.

Veste reports strong Q2

The financial highlights also include an adjusted gross profit of 207.6 million Brazilian real, up 8.9 percent year-on-year, and an adjusted EBITDA of 75.4 million Brazilian real, which grew by 12.3 percent. The company's profitability also saw an increase, with adjusted net income rising by 59.2 percent to 17 million Brazilian real.

Operationally, the company saw a consolidated same-store sales growth of 7.3 percent. A key factor in this was the strong performance of its brands, and Veste also focused on profitability by increasing full-price sales in its B2C channel to 84 percent, a 5 percentage-point increase over the previous year. The company's digital channels continue to perform well, with app sales accounting for 28.3 percent of digital B2C sales. Additionally, the company is expanding its physical presence, having opened four new Dudalina franchises during the quarter.

Performance by brand

The company's brand Le Lis led the way, with gross revenue of 212.8 million Brazilian real, an increase of 9.4 percent over the previous year. The brand saw a same-store sales growth of 9.3 percent and maintained its premium positioning with full-price sales accounting for 90 percent of its total sales. The active customer base also grew by 2.3 percent during the quarter.

John John experienced a positive turning point, reporting a 3.6 percent increase in revenue to 46.6 million Brazilian real. The brand's same-store sales grew by 8.1 percent, reflecting the success of its recent assortment adjustments in both its physical and digital stores.

BO.BÔ saw an 8.8 percent rise in revenue, reaching 35.3 million Brazilian real. Individual demonstrated a growth with a 35.9 percent increase in revenue to 16.5 million Brazilian real. The brand's digital sales were particularly strong, growing by 49.1 percent in the quarter. Individual's partnership with Palmeiras football club for the Palestra 1914 brand is also contributing to its performance.

Dudalina's revenue for the quarter saw a 2.1 percent decline to 59.8 million Brazilian real, primarily due to a strategic reduction in clearance sales. Despite this, the brand's gross profit and operational results grew, driven by increased sales in its B2B and B2C digital channels, as well as a focus on full-price sales in physical stores.