VSTE3: quote, dividends and indicators for Veste

Veste S.A. Estilo, traded on B3 under the ticker VSTE3, is an apparel retail company that has built a portfolio of brands aimed mainly at the high-end fashion segment in Brazil. Founded in 1982 under the name Restoque Comércio de Roupas Ltda., the company gained traction from 1988 onward, with the creation of the Le Lis Blanc brand and the opening of its first store at Shopping Iguatemi in São Paulo. Over the following decades, it expanded its operations with owned stores, a multibrand channel and licensed units in different cities across the country, gradually incorporating new product lines such as home décor and children’s clothing, and broadening the lifestyle concept associated with its brands. In 2008, it went public on the then BM&FBovespa (now B3), using the proceeds to accelerate the expansion of its network of owned stores, buy back licensed points of sale and begin a growth cycle via brand acquisitions.

Veste’s inorganic growth path includes the acquisition of the BO.BÔ brand in 2008, which at the time had a single showroom store and was later redesigned and repositioned, and began to be sold in owned stores, digital channels and multibrand boutiques. In 2012, the company acquired the John John brand, initially focused on wholesale denim, and launched it in retail through owned stores. In 2014, it added Dudalina to its platform, a traditional shirt brand founded in 1957, followed by a share merger in 2017, which also added the men’s brand Individual. This expansion significantly increased the number of owned stores and the presence in multibrand retailers across Brazil. On January 10, 2023, the company changed its corporate name to Veste S.A. Estilo, marking a new strategic cycle oriented toward growth with a focus on customer experience, digital integration and operational efficiency. In parallel, the company carried out consecutive capital increases in 2022, 2023 and 2024, aimed at debt restructuring, capital strengthening and investments in the modernization of brick-and-mortar stores and technology.

Veste’s activities are focused on the development, production and sale of apparel, accessories and items related to the fashion and home universe, in a single operating segment for accounting purposes. As of December 31, 2025, the company operated 169 owned stores across five main brands – Le Lis, Dudalina, John John, BO.BÔ and Individual – plus 10 outlets under the Estoque banner. It also had 23 franchise agreements and supplied products to approximately 3,000 multibrand stores throughout the country. Le Lis is the main brand in terms of gross revenue, with a 51.4% share in 2025, offering a broad portfolio of women’s fashion and home décor, including the Le Lis Casa line and home fragrances. Dudalina accounted for 16.1% of gross revenue, strongly associated with the quality of its shirts and a complete wardrobe for both men and women. John John, with 11.8% of gross revenue, has a young and urban positioning, with a focus on jeans, T-shirts and footwear. BO.BÔ, responsible for 9.1% of gross revenue, focuses on luxury women’s fashion and more exclusive pieces, while Individual, with 4.3% of revenue, is a timeless menswear brand geared mainly toward the multibrand channel, with a solid presence in small and mid-sized cities.

Veste’s business model combines B2C, B2B and outlet channels in an integrated distribution network. In fiscal year 2025, the B2C channel accounted for 75.0% of gross revenue, combining brick-and-mortar stores and the brands’ e-commerce, while the B2B channel, composed mainly of multibrand retailers and franchises, represented 17.7%, and the outlet channel, 7.2%. Owned stores are concentrated in shopping centers and high-traffic, high-visibility street locations, with emphasis on the state of São Paulo, which had 60 owned stores (excluding outlets) at the end of 2025, followed by states such as Paraná, Minas Gerais, Santa Catarina, Rio de Janeiro and the Federal District, among others. The company did not generate revenue abroad in the last fiscal year, maintaining a focus on the Brazilian premium fashion market. Production is partially vertically integrated: around 66% of 2025 revenue came from products manufactured in Brazil, with 20% from the company’s own plants, located in Paraná and Goiás, and 46% from domestic suppliers; the remaining 34% of products were manufactured abroad. The production process follows a structured flow, with collection development by design teams dedicated to each brand, definition of prototype models, fabric and quality testing, mechanized cutting, specialized sewing, sample-based quality control and subsequent shipment to distribution centers.

Veste’s logistics are centralized in three distribution centers, located in São Paulo (SP), Aparecida de Goiânia (GO) and Extrema (MG), with specific roles by brand and channel. The São Paulo center serves owned stores, multibrand customers of Le Lis and BO.BÔ, e-commerce customers and outlets. The Aparecida de Goiânia center distributes John John, Dudalina and Individual products to owned stores, multibrand customers, franchises and e-commerce. The Extrema center is dedicated to fulfilling e-commerce orders for all brands. Distribution is carried out mainly by road, with air freight support for more distant regions, using an outsourced fleet and without dependence on a single carrier. In its relationship with the multibrand retail channel, the company has a network of 36 sales representatives operating in different regions of the country, increasing the reach of its brands in a market characterized by strong fragmentation and a predominance of independent retailers.

The competitive environment in which Veste operates is apparel retail in Brazil, with an emphasis on the high-end segment, in a scenario marked by a wide dispersion of players and a predominance of smaller companies. The shopping-center channel is central to the store location strategy, in a market that has seen strong growth in the number of malls and in the sector’s revenue over recent decades. The premium segment has a relative scarcity of large foreign chains, given entry barriers such as tax complexity, exchange-rate volatility, logistics requirements, an inverted collection calendar versus the Northern Hemisphere and a fragmented distribution structure. In this context, Veste faces competition from domestic and international brands established in the country, including chains and labels such as Animale, Aramis, Colcci, Ellus, Lacoste, Osklen, Reserva, Richards, Tommy Hilfiger, Zara, among others, as well as countless independent multibrand stores competing for higher-income consumers.

From a regulatory standpoint, Veste’s operations do not depend on specific authorizations beyond the licenses common to retail, such as zoning and operating permits and Fire Department inspection certificates for stores and distribution centers. The company holds Operating Authorizations for units that operate as logistics centers and complies with health regulations related to the sale of cosmetics, personal hygiene products, perfumes and cleaning agents, when applicable. In the industrial area, garment manufacturing requires environmental licensing in accordance with Brazil’s National Environmental Policy, which involves obtaining and periodically renewing licenses from the competent authorities. The company is also subject to environmental legislation in its administrative, civil and criminal dimensions, including provisions relating to the use of water resources, waste treatment and disposal, and potential joint liability related to contracted third parties. In tax matters, Veste benefits from tax incentives, such as those granted by the state of São Paulo on the sale of textile products, and state-level programs in Goiás, such as ProGoiás, tied to the installation and operation of the industrial plant in Aparecida de Goiânia, with validity through 2032.

In the environmental, social and governance (ESG) field, Veste prepares and discloses an Annual Sustainability Report, having published its fifth edition in 2025. This report follows Global Reporting Initiative (GRI) standards and is linked to the United Nations Sustainable Development Goals, aligned with the principles of the Global Compact. The document presents material topics for the company defined through a materiality study with a short- and medium-term horizon of up to five years, with plans for periodic review. Although the sustainability report is not audited by an independent entity, the financial statements used as the basis for some of the information are audited. The structured disclosure of this information indicates an effort to ensure transparency in communicating ESG practices and indicators relevant to Veste, complementing the traditional financial and operational view associated with VSTE3 shares traded on B3.