TFCO4

Track & Field Co S.A., traded on B3 under the ticker TFCO4, is a Brazilian company founded in 1988 in São Paulo, initially under the name Fratex Indústria e Comércio Ltda. The business originated in the manufacture of T-shirts for surfwear brands and direct sales in schools, quickly evolving into brick-and-mortar retail with the opening of its first store at Shopping Jardim Sul in 1990. The move into the sportswear segment occurred organically, driven by the founders’ interest in running and triathlon. In 1992, the opening of a store at Shopping Iguatemi São Paulo marked a turning point, increasing the brand’s visibility and solidifying its presence among higher-income consumers. Over the following decades, the company expanded its network of own stores and outlets, launched its e-commerce channel in 2009 and, in 2011, revamped its franchise model, which became the main growth driver for the network.

The corporate restructuring in 2020, when the company changed from a limited liability company to a corporation and adopted the name Track & Field Co S.A., paved the way for its IPO. In October of that same year, the company went public on B3, gaining listed shares and broader access to the capital markets. Following this move, Track & Field stepped up investments in innovation, technology, omnichannel capabilities and physical expansion, reinforcing a positioning centered on the wellness concept, integrating sports products, experiences and services. The post-IPO period was marked by a strong pace of store openings, modernization of points of sale and consolidation of an ecosystem that combines sports fashion retail, sporting events and a digital wellness platform.

Track & Field’s business model is based on a single operating segment focused on sportswear and an active lifestyle, complemented by sports services and experiences. The company develops, produces in partnership with third parties and sells sportswear, beachwear and watersports apparel, accessories and footwear, with an emphasis on proprietary textile technology products and designs geared toward performance and comfort. Lines such as Thermodry, Powercool and UVTech illustrate its investments in functional and exclusive fabrics. The company operates in an integrated manner across the entire value chain, from collection development and purchase of raw materials to supplier management, logistics and store operations, maintaining strong control over style, quality and standardization of the shopping experience.

Track & Field’s revenue structure is composed mainly of direct-to-consumer retail, which includes sales in own stores, outlets and e-commerce, representing the main source of cash generation. The company also generates significant revenue from merchandise sales to franchisees, royalties from franchise network operations and from sports events and experiences, such as road races and group classes. In 2024, total gross sales across all channels of the Track & Field Group reached approximately R$ 1.4 billion, while consolidated net revenue totaled about R$ 831.8 million, with net income of R$ 117.8 million. The product mix sold in 2024 was predominantly geared toward women, who accounted for just over half of the items, with sportswear as the main revenue contributor, followed by accessories, watersports and footwear.

Track & Field operates through a multichannel distribution network with fully integrated own stores, franchises and e-commerce. At the end of 2024, the company had 398 units in Brazil and Portugal, including 53 own stores (e-commerce and outlets included) and 345 franchises, with a geographic footprint reaching 176 cities in 26 Brazilian states. In 2024, the company opened 41 new stores and entered 14 new cities, strengthening the reach of its franchise model, which includes support for franchisees from the choice of store location through day-to-day operations, with integrated IT, standardized layout and ongoing supervision. Omnichannel capabilities are a strategic pillar, with initiatives such as ship-from-store, pick up in store, endless aisle, social selling via WhatsApp and the tfmall marketplace, which connects sellers of wellness-oriented products to the brand’s digital ecosystem.

On the experiences front, Track & Field has consolidated TFSports as a platform for sports and wellness events, extending its activities beyond the sale of physical products. This unit organizes the Track&Field Run Series circuit, considered one of the largest road racing series in Latin America in terms of number of races, as well as the Track&Field Open beach tennis tournament and TF Experience events, which include activities such as yoga, ballet fitness and functional training. In 2024, TFSports held more than 3,600 events and experiences, with around 391,700 registered participants, and a base of 868,900 registered users and 8,000 trainers. This platform also serves as a relationship and sales channel, bringing trainers closer to the brand and enabling them to act as direct sellers, integrating products, services and community around the wellness concept.

Although Track & Field’s geographic presence is concentrated in the Brazilian market, it began its internationalization with the opening of its first franchise in Portugal, at Marina de Cascais, in 2024. In the domestic market, stores are located in high-traffic shopping malls, high street retail locations, airports and gyms, focusing on regions with higher adherence to an active and healthy lifestyle. The company centralizes its logistics operations in a distribution center located in Osasco (SP), with more than 8,000 square meters, supplying own stores and franchises on a weekly basis, with optimized delivery times for different regions of the country. The geographic proximity to domestic textile suppliers, which account for 77% of total raw material purchase volume, contributes to production flexibility, agility in replenishment and the ability to continuously launch capsule collections.

From a regulatory standpoint, Track & Field is subject to general retail and franchise legislation in Brazil, specific tax rules for the textile sector in São Paulo and consumer and data protection regulations. The company benefits from tax incentives related to the São Paulo textile industry, such as reduced tax bases and ICMS tax credits for internal sales of manufactured products, which directly impact its tax structure. The franchise business is regulated by the Franchise Law, which imposes transparency and disclosure requirements in the offering of new franchises. In dealings with consumers, the company follows the Consumer Protection Code, with obligations related to product and service quality, safety and clear information. In terms of data privacy, the company has implemented adjustments to comply with the General Data Protection Law (LGPD), as its digital and omnichannel operations involve intensive processing of personal data from customers and users of its platform.

On environmental, social and governance matters, even though there is no emphasis on specific certifications, Track & Field structures its supply chain mainly around domestic suppliers of fabrics, trims and finished products, maintaining long-term relationships and processes to monitor the quality and integrity of these partners. The nature of its operations, based mostly on retail stores and a distribution center, implies low pollution potential and no material generation of special waste, which is reflected in a set of environmental and zoning licenses of relatively lower complexity. On the social side, the company promotes an active and healthy lifestyle through TFSports and free class programs such as “Continue em Movimento,” as well as engagement initiatives with local communities through franchisees and trainers. In governance, 2023 was marked by a reorganization of senior leadership, with one of the founding partners transitioning to roles focused on innovation and new business, the appointment of a new CEO and the strengthening of the finance and investor relations structure, in line with the requirements of a publicly traded company listed on B3 under the code TFCO4.