O SBF Group (SBFG3), owner of Centaur and gives physiaofficial distributor of Nike in Brazil, has ambitious expansion plans.
In addition to the goal of doubling revenue and quadrupling earnings by 2026, the group has made efforts to become a platform for sportive articles even more complete, consolidating its leadership position in a segment that is still fragmented in the domestic market.
In an event with investors and market experts, SBF shared some of its strategies to take the company to the desired levels in four years. Two points stand out:
- accelerated platform growth omnichannel, with SBF being a reference in the niche, with 27% of sales in the online channel in the first quarter of 2022; and
- integration and growth of the Nike brand.
Nike’s potential in Brazil
Fisia recently announced that it will open five new Nike stores in Brazil. The process of opening the brand’s units is part of the company’s plan to reach the end of the year with 35 points open.
In 2021, Fisia registered 22 Nike units in operation in the country.
In the evaluation of BTG Pactual (BPAC11), the opening of new stores can increase Nike’s reach and improve its position in the Brazilian market.
Another business model with great potential for operations is the launch of the application, which can serve as a catalyst for revenue, according to SBF itself. The tool can reach a 15-30% share of Nike’s sales, showing a higher repurchase rate and a 30% increase in consumer spend.
In addition to the plans for Fisia, SBF is working on expanding its Centauro stores. The intention is to renovate the units of Generation Five (G5), focused on the consumer experience. About 260 new locations are being mapped, and BTG expects approximately 150 stores by 2026.
For revenue and profit, BTG estimates that, in four years’ time, the SBF will reach amounts around, respectively, R$16 billion and R$1.2 billion.
“We welcome the solid progress in integrating Fisia’s operations, the improvement in omnichannel and the creation of a sporting goods ecosystem. With its leading position in a highly fragmented market and a solid capital structure, we see plenty of room for market share gains, which, coupled with the platform’s accelerated growth omnichannel and Nike’s operations support our positive view of the name”, say analysts Luiz Guanais, Gabriel Disselli and Victor Rogati, in a report released this Monday (27th).
BTG’s recommendation for SBF’s shares is to buy, with a target price for the next 12 months of R$34, which implies an appreciation potential of almost 70% in relation to the last closing.
The company’s shares are down 3.69%, at R$19.34, close to 12:30 pm on Tuesday (28). The Ibovespa, on the other hand, rose 0.38%, reaching 101,148.43 points.
Get the top Buy or Sell news!
Sign up for the Buy or Sell newsletter for free and receive, every day (Monday to Friday), a selection of the main news and notes on bank and brokerage portfolios, in addition to an exclusive product: the Money Wallet Times, the biggest consensus on the market. Click here to register!
Disclaimer
O Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.
Source: Moneytimes
I am an author at Global happenings and I mostly cover automobile news. In my time working in the automotive industry, I have developed a keen interest in the latest developments and trends. My writing skills have also allowed me to share my knowledge with others through articles and blog posts.
