Sports
Track & Field Co SA (BSP:TFCO4) Q2 2025 Earnings Call Highlights: Robust Growth Amidst …
Release Date: August 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Track & Field Co SA (BSP:TFCO4) reported a robust growth of almost 28% in Q2 2025, primarily driven by same-store sales.
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Digital growth was significant, with e-commerce sales increasing by over 50%, contributing to the company’s overall sales.
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The company achieved a 37% growth in EBITDA and a 36% increase in net income, with healthy margins.
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Store renovations have been highly effective, with renovated stores nearly doubling same-store sales.
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Track & Field Co SA remains debt-free, with a strong cash position and significant operating cash generation.
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The company faced logistics challenges due to growth exceeding expectations, which could lead to bottlenecks.
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There was a 5% reduction in revenue from events and TF mall due to a mismatch in competition calendars and the end of a tax benefit.
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Working capital dynamics worsened due to increased inventory investments and accelerated production.
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The company experienced a 30% drop in cash position, partly due to a share buyback program.
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TF Sports revenue dropped as many events were postponed to the second half of the year, impacting overall revenue.
Q: The numbers you reported are surprising and you’ve been reporting those numbers consistently quarter after quarter regardless of the macroeconomic situation or any baseline challenges you have. You always deliver robust growth. So do you still see room to grow? Can you give us some color about the beginning of Q3? A: We were indeed surprised with growth above what we expected in this first half of the year, but we see great opportunities ahead of us to support same store sales growth. Renovations will continue to be an important lever. Some stores grew by 42%, others by almost 60%. We think that the same store sales can grow in the second half of the year and beyond. We are working hard to improve supply to stores, CRM, and commercial planning. About Q3, we believe the positive trend of the first half will continue, although the baseline for comparison becomes stronger.
Q: As for Fred, I think it’s about liquidity of your papers. We see that people want to talk about track and field. They want to be able to invest more, but this can become a limiting factor for some funds. Do you have any type of agenda or expectations to implement initiatives to work on that? A: About liquidity, in this first half of the year, we saw significant growth in our liquidity. As the price achieves a fair level, consumers give liquidity to our papers. We have over 70% increase in track and field shares since January 1st, so the liquidity has come. Once it achieves a fair value, we should be able to get the liquidity we want. Over 30% of the company’s share is in the market, so we believe that the liquidity will come naturally.
Q: The first is about TF Sports. Can you give us some more color about the sponsorship initiative? Can we expect results coming from this line? A: We have been structuring our sponsorship area and are very happy with the results. Many sponsors are recurring, and with a growth in the number of events, they end up having greater exposure. We have a close partnership with our top sponsors, so we expect to see growth in this line going forward. TF Sports growth will not come only from the sponsorship line; our business model also focuses on other lines.
Q: Working capital, we see some worsening this quarter. Do you believe that the working capital will normalize from now on? A: Indeed, we had to accelerate some products that would go into our inventory, so we had to accelerate production with fabrics and raw materials being purchased earlier. We had pressure because our factory in Santa Catarina is now self-sufficient in the turmo dry production. We lost about 6 days in our turnaround time with more products going into our inventory. However, we expect improvements in the coming quarters.
Q: Can you talk about your renovations in recent years and the recent wave of renovations as compared to the previous ones? What are you planning for the next cycle of renovations? A: We’re very happy with the renovations. We had 42% growth in renovated stores, which is very close to our global same store sales. By the end of the year, around 60% of our network will have this new format. Franchisees understand the financial benefit in renovating the store, so very interesting payback. We are optimistic about what lies ahead.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.