Track & Field Co (TFCO4) Q1 2025 earnings summary

Executive summary

• Achieved record growth in sell-out, same-store sales, and EBITDA in 1Q25, with net revenue reaching R$212.8 million, up 31.2% YoY, driven by network expansion, store renovations, and digital initiatives.

• Adjusted EBITDA rose 47.9% to R$54.7 million, with margin improving by 2.9 p.p. to 25.7%.

• Adjusted net profit increased 37.6% to R$39.0 million, with net margin at 18.3%, up 0.8 p.p. YoY.

• E-commerce sales grew 38.0% YoY, now representing 11.4% of total sell-out, with omnichannel strategies gaining traction.

• TFSports platform and wellness ecosystem expanded, with 955,000 users (+48.2% YoY), 854 events, and 106,900 participants (+57.4% YoY).

Financial highlights

• Sell-out reached R$380.6 million, up 33.7% YoY, with same-store sales up 24.8%.

• Gross profit was R$129.8 million (+36.0% YoY), with gross margin at 61.0% (+2.1 p.p. YoY).

• Operating cash flow was R$59.0 million (+27.1% YoY), and the company ended the quarter with zero debt.

• Adjusted operating expenses were 35.3% of net sales, down 0.6 p.p. YoY.

• Net cash position was R$50.4 million, with cash equivalents at R$138.4 million.

Outlook and guidance

• Management expects continued growth and healthy margins, with about 60% of the store network to adopt the new layout by year-end.

• Focus remains on efficiency, innovation, and customer experience to drive sustainable growth.

• Store renovation and TFSports platform are primary investment focuses for 2025 and possibly 2026.