Brazilian Footwear Major Arezzo & Co Reports Strong 2022 Revenue Growth
The footwear and accessories conglomerate recorded full year 2022 gross revenues of 5.2 billion reais ($1.01 billion), a 43.5 percent increase from the previous year. Adjusted net revenues grew by 44.8 percent year on year, reaching 4.23 billion reais ($822.3 million).
Despite challenging conditions in Brazil’s consumer sector, Arezzo & Co largely attributes its positive results to strengthening its omnichannel strategy, which helped grow the registered customer base to 5.3 million clients, up 21.5 percent from 2021. E-commerce grew 33.4 percent over the previous year to 1.1 billion reais ($211.5 million) representing 23.3 percent of sales.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for 2022 was 657 million reais ($127 million), up 43.1 percent from 2021.
The company attributed some of the growth to its lifestyle arm AR&Co and the expansion of its international business. The former, which comprises brands Carol Bassi, streetwear brand BAW and Reserva, reached 1.2 billion reais ($233 million) in sales in 2022, up 55.7 percent from the previous year.
In line with its expansion plans, Arezzo&Co acquired a 65% majority share in Milan-based luxury footwear brand Paris Texas last week. In January, the company acquired Vicenza, one of Brazil’s largest independent shoe brands.
Meanwhile, Arezzo & Co’s US operations in 2022 registered 490 million reais ($95 million) in gross revenue, representing growth of almost 41 percent versus 2021.
The conglomerate’s brand portfolio includes brands Arezzo, Schutz, Anacapri, Alexandre Birman, Fiever, Alme and a distribution license for Vans, as well as the operations of the ZZ Mall marketplace and the resale platform Troc.
Arezzo & Co Acquires Italian Footwear Brand Paris Texas
The Brazilian footwear and accessories conglomerate has paid 130 million Brazilian reais ($25 million) to acquire a 65 percent share in the Milan-based shoe brand, signalling the company’s plans to continue expanding its global footprint.