After several years of operational and strategic adjustments, Veste is beginning to show signs of recovery. In 2025, the fashion company, owner of brands such as Le Lis, Dudalina, and Individual, recorded an adjusted net profit of R$ 33.2 million, a 134% increase compared to the previous year.
In addition to the recovery in the bottom line, the result reflects an operational transformation that the company has been conducting in recent years.
“I still think that profit figure is small. But this was the turning point year,” said Alexandre Afrange, CEO of Veste, on Números Falam . “The strategy is simple, but the execution is complex.”
For him, the company's recovery can be summarized as focusing on the essence of the brands, discipline in inventory management, and a change in the store model.
Of these three main pillars, returning to the essence of the brands is considered one of the key points – mainly because Veste is a fashion company.
The fashion retailer has refocused its efforts on the identity of its main brands. In this process, Le Lis has gained prominence within the portfolio and consolidated its position as the company's main revenue generator – which reached R$ 1.24 billion last year.
The strategy involved product repositioning and greater consistency in collections, an element considered essential in a sector where the relationship with the consumer is built each season. "If you mess up a collection, you only recover in the next one," the CEO stated on the NeoFeed program.
Another pillar of the transformation was the improvement in inventory management, which is one of the most critical factors for profitability in the apparel sector. At the end of 2025, the company's inventory level was at 177 days, a reduction of 45 days compared to the previous year.
The decline reflects changes in how the company plans its collections and manages product flow. This operational improvement also helped boost the company's cash generation. EBITDA totaled R$ 266.7 million, with a margin of 21.5%, while adjusted EBITDA advanced 18.6% in 2025, reaching R$ 266.7 million.
The third point of the strategy was the evolution of the physical store model. The company has invested in units with updated layouts and greater integration with digital channels.
Rather than opening new stores, the strategy is to renovate existing ones, which can generate a gain of nine percentage points more than those that are not renovated.
The goal is to transform stores into customer relationship hubs, not just sales channels. This shift reflects an idea of bringing physical and digital channels closer together and integrating them.
In this process, e-commerce also gained relevance within the company. In 2025, Veste's digital sales reached R$ 281.8 million, with a growth of 21.3% compared to the previous year.
In Afrange's view, the challenge for the company throughout 2026 is maintaining discipline in the continued execution of this strategy.
On the B3 stock exchange, VSTE3 shares have accumulated a 5.1% drop this year, up to Wednesday, March 11th. Over the past 12 months, the stock has fallen 44.3%. The company's market capitalization is R$ 426.5 million.