Arezzo & Co. reported a strong finish to 2022 as the Brazilian company continued its aggressive expansion.
The firm reported full year gross sales of 5.2 billion reais (or $1.01 billion), up 42% from the prior year and a company record for gross revenue. Adjusted net income was 386 million reais ($74 million), which was up 43% compared to the prior year.
The footwear conglomerate’s brand portfolio includes brands Arezzo, Schutz and Alexandre Birman, among other brands, and a licensed Vans business.
In Q4, Arezzo & Co. reported 1.6 billion reais in gross revenue, 20% higher than Q4 of the prior year. The company also opened a net of 50 new stores in the quarter and sold 10.1 million products, which includes 6.6 million pairs of shoes.
In the U.S., the company achieved 489.7 million reais in 2022 (about $95 million), which marked a 40.9% increase over 2021. U.S. revenues accounted for 9.4% of Arezzo & Co.’s sales.
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Moving into 2023, Arezzo & Co. said it will focus on sustainable growth, innovating its core brands, expanding its portfolio and growing its women apparel offerings.
Already this year, the company acquired a majority stake in Italian footwear label Paris Texas in a deal announced earlier this month. This deal marked the company’s first international acquisition. Arezzo & Co.’s CEO Alexandre Birman said in an interview that it was just the first move toward a new direction for the company.
“This moment is very important and beyond just one acquisition. It’s the beginning of a new era of Arezzo & Co. and of a transformation that we have been studying and planning for years,” he said. Birman founded his namesake brand in 2008 after already establishing the Schutz label at only 18 in 1995.
His father Anderson, chairman of Arezzo & Co., and uncle Jefferson founded the namesake brand Arezzo in 1972. Five decades later, the company evolved into a multi-branded group that includes also Anacapri, Fiever, Alme, My Shoes, Baw Clothing, Carol Bassi and the lifestyle arm AR&Co, which includes brands such as Reserva.
The company has been listed on the São Paulo Stock Exchange since 2011.
