The Brazilian footwear and accessories conglomerate reported full-year 2021 adjusted net revenue of 2.93 billion Brazilian reais (about $575.7 million), up 81, 3% YoY. Adjusted net profit increased year-on-year by 208.4% to 269.2 million reais.
This puts the retailer’s performance well above pre-pandemic levels when net sales reached 1.67 billion reais. The conglomerate’s online sales grew 55% year-on-year and now account for 25% of total sales.
Arezzo’s U.S. operations outperformed other markets, posting record revenue of R$347.5 million, up 72.8 percent year-on-year.
According to the company, its performance was driven by the strength of sales in all the group’s brands and the acceleration of sales of the physical channels, which recorded growth, both in sell-out and sell-in. Additionally, 2021 was the first year in which AR&CO, the lifestyle arm of the company, was fully integrated into the group. It constituted 28% of the gross turnover of Arezzo & Co.
However, the balance sheet was negatively impacted by increased finance charges, resulting from higher leverage and increased credit card fees, which increased in line with increased sales.
“Our multi-channel, multi-brand and multi-category strategy is working extremely well. I am confident that despite all the global challenges 2022 will still be a great year,” Arezzo & Co CEO Alexandre Birman told BoF.
During the fourth quarter of 2021, the company recorded adjusted net revenue of 1.1 billion reais, a growth of 69.6% compared to the same period in 2020. Earnings before interest, taxes, Depreciation and amortization (EBITDA) increased by 51.6%, totaling 175.2 million, which represents the best EBITDA in the company in a single quarter.
Arezzo owns the footwear brands Arezzo, Schutz, Anacapri, Alexandre Birman, Fiever, Alme, a distribution license for Vans in Brazil and the ZZ Mall market. In 2020, the company purchased Reserva Group, a clothing retailer and clothing brand group and 75% of Troc, an online luxury clothing resale site; both were incorporated into the company’s lifestyle division AR&CO, as well as Brazilian streetwear brand BAW and womenswear brand Carol Bassi in June and December last year, respectively.
Brazilian footwear giant Arezzo & Co acquires Carol Bassi
Brazilian footwear and accessories conglomerate Arezzo & Co has bought Brazilian high-end womenswear brand Carol Bassi, for 180 million reais ($32 million).