The footwear and accessories conglomerate reported an adjusted net income of 58 million Brazilian reais ($11.34 million) in the first quarter of 2022, an increase of 94 percent compared to the the same period last year. Net income rose 229 percent, reaching 97.2 million reais.
The latest figures were the result of the resumption of shopping among Brazil’s more affluent “A and B class” consumer demographics. Arezzo’s home market accounted for 88 percent of revenue this quarter.
The company’s online operations also helped boost the bottom line. Arezzo & Co, together with its lifestyle arm AR&CO registered steady digital growth of 40.6 percent on the year. Digital distribution currently represent the third most important revenue stream at 24.4 percent of sales with franchises and multiband stores taking the lead with 27 percent share each.
Even though the company experienced an increase in financial expenses related to its recent expansion and currency exchange rates which reduced the gains from international operations, it still managed to register 110 million reais in its US operation, representing a 103.6 percent year on year.
Arezzo & Co’s portfolio includes footwear brands Arezzo, Schutz, Anacapri, Alexandre Birman, Fever, Alme and a distribution license for Vans in Brazil. It also operates the ZZ Mall marketplace, resale platform Troc and a lifestyle arm AR & Co, including Reserva, streetwear brand BAW and womenswear label Carol Bassi.
Arezzo & Co, has acquired My Shoes, a local women’s footwear brand that has been inactive for the past three years, and has partnered with e-commerce giant Mercado Libre to sell and distribute My Shoes products on its platform.