TFCO4 Track & Field

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 origin of the business is linked to the manufacture of T-shirts for surfwear brands and direct sales in school environments, quickly evolving into physical retail with the opening of its first store at Shopping Jardim Sul in 1990. Entry into the sports fashion segment took place 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, expanding the brand’s visibility and consolidating its presence among higher-income consumers. Over the following decades, the company expanded its network of own stores and outlets, launched its e-commerce in 2009 and, in 2011, revamped its franchise model, which became the main growth driver of 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., prepared the ground for going public. In October of the same year, the company carried out its IPO on B3, gaining listed shares and broader access to the capital markets. From that point on, Track & Field stepped up investments in innovation, technology, omnichannel strategies and physical expansion, reinforcing a positioning centered on the wellness concept, which integrates 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, sports 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 products featuring proprietary textile technology and design geared toward performance and comfort. Lines such as Thermodry, Powercool and UVTech illustrate its investment in functional, exclusive fabrics. The company operates in an integrated manner across the entire value chain, from collection development and raw material purchasing to supplier management, logistics and store operations, maintaining tight control over style, quality and the 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 on 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 portfolio sold in 2024 was mostly aimed at the female audience, which 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, comprising 53 own stores (including e-commerce and outlets) and 345 franchises, with a geographic presence reaching 176 cities in 26 Brazilian states. In 2024, the company opened 41 new stores and entered 14 new cities, reinforcing the capillarity of its franchise model, which includes support to franchisees from site selection through day-to-day operations, with integrated IT, standardized layout and ongoing supervision. Omnichannel is 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 sports and wellness events platform, extending its activities beyond the sale of physical products. This unit organizes the Track&Field Run Series race circuit, considered one of the largest street running series in Latin America in number of races, as well as the Track&Field Open beach tennis tournament and TF Experience events, which include modalities such as yoga, ballet fitness and functional training. In 2024, TFSports held more than 3,600 events and experiences, with around 391,700 registrants, 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 allowing them to act as direct sellers, integrating products, services and community around the wellness concept.

Track & Field’s geographic footprint, although concentrated in the Brazilian market, began to internationalize 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 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, which supplies own stores and franchises on a weekly basis, with optimized delivery times for different regions of the country. Geographic proximity to domestic textile suppliers, which account for 77% of the total volume of raw material purchases, contributes to production flexibility, agile 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 taxation for the textile sector in São Paulo, and consumer protection and personal data protection rules. The company benefits from tax incentives related to the São Paulo textile industry, such as a reduced tax base and ICMS credit grants on domestic shipments of manufactured products, which directly affect its tax structure. The franchise business is regulated by the Franchise Law, which imposes transparency and disclosure requirements in offering new franchises. In its relationship 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 adjusted to the General Data Protection Law (LGPD), given that its digital and omnichannel operation involves intensive processing of personal data from customers and platform users.

Regarding environmental, social and governance aspects, although 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 for quality and integrity control of these partners. The nature of its operations, based mainly on retail stores and the distribution center, implies low pollution potential and no material special waste, which translates into a set of environmental and urban permits of relatively lower complexity. On the social front, the company reinforces the promotion of an active and healthy lifestyle through TFSports and free class programs such as “Continue em Movimento” (“Keep Moving”), in addition to engagement initiatives with local communities through franchisees and trainers. In governance, 2023 marked a reorganization of top management, with the transition of the role of one of the founding partners to functions 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.