Good morning. Thank you for participating in our conference call for the results for 3Q 2023. I have with me Rafael Sachete, our CFO, and our Investor Relations Manager, Vicky Machado. This is our 52nd call that I have the pleasure of spearheading, and I'm going to give you the highlights of the 52 calls, and 49 with growth. So this is always a very important moment for us, being able to interact with all of you. It's very rich. So thank you once again for participating, and we are at your disposal for this interaction. In 3Q 2023, highlight the results that are a result of our strategic objectives and focusing on operating efficiency, having healthy growth, especially with a lot of attention to full price sales, lowering our inventory and consequently improving our working capital, that we do still have to evolve.
The foundation of all our work is our sell-in and sell-out calendar. It's that locomotive that we have executed precisely for the past 20 years, showing us the agility in remarket, transacting our products, making the best decisions, and consequently growing our sales. Our brands, our-- are our major strengths. They are top of mind in their market niches. These brands currently have high awareness all over Brazil and even internationally. That's what makes this company being able to exceed every single quarter in its results during these 50 years, and what really makes that happen is our culture. Our culture comes from our passion, our engagement, and agility, even in the most difficult times, as it's put into practice and bringing on fast changes in our path and always finding the best path.
We're very much ready for that final stretch of 2023, a very challenging year for everyone. We've already started the launch for high summer. It's our biggest and exceptional result these last couple of days. So now we're going to focus on the calendar. We're going to take the foot off the gas in Black Friday. We'll have lower promotional events and just make it very close to the end of November, and then completely focusing on Christmas sales, and we know that's gonna be a hit. Moving on to our presentation. One moment, please. So we'll talk about the highlights. Among the highlights, I'm gonna talk about the performance of brands and channels. Rafael Sachete will talk about the financial highlights, and we'll leave a lot of time today for Q&A. I can see that we're already seeing these questions coming in.
That's very important for us. I'm not going to talk about the attachments for the brands. I recommend you look into that later. We're giving you a lot of explanations about each brand and main activities and the marketing plan, so you'll really enjoy that content. We had growth of 12.7% based on the baseline of 47.3%, compared to 3Q 2021, so very organic. Most of our results in 2023 is based on the 2022 growth, solid growth, achieving the mark of BRL 1.6 billion in the quarter. That is equal to approximately BRL 530 million per month, shows that the company is stable in that revenue level, and the company is consistently led to operating leverage.
That's where the company has excellent efficiency in managing its expenses, as well as operating performance of the entire production and distribution chain and sales at the end. That is very healthy. We had... We're excellent in coming out of the winter collection. So in July, August, September, July is transition, leaving winter and going into cruise collection. We had full price sales in July, much higher than what was ascertained in July 2022. And the summer collection, August, September, up to the end of October. As of that point in August, we intensely launched. It even seems like it was a year ago, but it was actually on August seventh, we had the pleasure of having a major event for the Arezzo brand, with the presence of Gisele Bündchen. So their awareness event that at the end lead into sales results.
About the 9 months of 2023, we achieved BRL 4 billion in revenues, so year to date, 19%. We can say that based on LTM, we reached the mark of BRL 6 billion in revenue. As I mentioned, BRL 530 million per month on average, that's what we expect in growth greater than 2 digits for the beginning of 2024. So here are some of the highlights of our brands. I'll go in deeper into them now. So, about the revenue breakdown, we had a recurring base of customers and a growth of 9% in total transactions of taxpayer numbers that bought from our brands this quarter, very high, 5.5 million people. Full price sales, much higher than markdown sales. That led to efficiency in gross margin, and that has reflected in an improvement in our performance of our EBITDA.
That was BRL 218 million on a recurring basis, and with a very healthy increase. Net income, BRL 107 million. Given some accounting aspects, it was reported as BRL 114 million, and Rafael will go into that. As a result of that, since our IR like to look at our ROIC, so internally, as the variable compensation of our executives, ROIC is as important as the net income. Now into our brands and channels. Arezzo brand, today, is a synonym of women's shoes and bags in Brazil. So our share and growth in Arezzo, when you see BRL 419 million in a quarter, which is growth based on a very strong number from 2022, the Schutz brand, with global revenues of BRL 301 million.
The Schutz brand is going through a moment where it's improving its full price performance even more, especially in the e-commerce channel. In 2022, Schutz was affected by off-price sales, a large volume of that, and that was a strategy of the company. So we have efficiency of gross margin and consequently reducing markdown sales. And the e-commerce for Schutz had the highest impact in that small sales reduction that the brand had in Brazil. Anacapri brand, since mid-2022, when we quickly adapted to a new trend of... even though it's only flat, being more premium and a little bit highs or heels and platforms. We talked a lot about that in 2022, where Anacapri was the only 1 that had a lower, base of growth compared to the other shoe brands, and now it's been consequently growing over 20%.
Alexandre Birman brand had a very expressive growth. It's going to exceed its BRL 300 million in 2023. Our apparel business, we'd like to congratulate all the leaders that do beautiful work with high market share in men's apparel, with consistent growth. A company in a business that will be close to BRL 1.5 billion in growth, pretty much fourfold compared to the past 3 years. A little more details of our digital sales. As I mentioned, e-commerce sales for us, it's not an outflow channel, it's about high profitability, where our marketing expenses are very well managed. The logistics efficiencies, constantly growing the number of sales that are generated by e-commerce and delivered or picked up at our brick-and-mortar stores, lowering the shipping costs. So we have a very high volume in e-commerce.
In addition to the growth of same-store sales and brick-and-mortar stores led to strong sales results in sell-out of the mono brand channels. Now, about the franchises, we have a solid network of franchises, over 750 stores. A franchise channel that was pretty much invented back in the '90s for the fashion segment. We have the resilience, and we are very close to our franchisees. On the week of November twenty-first, we'll welcome our biggest franchisees to launch our 2024 winter collection. So we're very happy with their performance in general. And the multibrand channel, which is pretty much the origin of our business when it was created back by Arezzo in the '70s and then improved in the '90s. We also have a close relationship with them, even though it's more spread out.
We had growth results also based on a healthy basis. About our tools, our digital tools, in a continuous process of evolution, especially regarding the connection that sales people have with the customer, with our customers, that was created during the pandemic. Our concern during all the years in growing the normal traffic in stores is that we didn't want to forget these tools or abandon these tools. There was a lot of work from the team to continue to use these digital tools, and you can see here the results that we're reaping, and that it's been very efficient in that connection, in omni-channel connection and our customers' experience. About the active customer base, this is a KPI that we really analyze. We always want efficiency in the cost of acquisition, so we want to lower our churn.
Our share in terms of taxpayer number is very encompassing, and we have a dedicated team that does excellent work in this journey with our customers. Those are the main highlights about the overall performance of the company, about our main brands and channels. Now, I'd like to ask Rafael Sachete to talk about our financial highlights. Over to you, Rafael.
Hi, Alexandre. Thank you. Good morning to everyone. Thank you for being here with us during our earnings call. I'll start off with revenues, and on the left of the slide. So, consistency of growth in Q3 2023, with a relevant base of comparison in 2022. So, 47% base, and we achieved 12.7% growth. And here in the highlight, and the consistency of the Arezzo brand, over 10% growth. I'd like to remind you, in the second quarter, the growth was over 20%. And also relevant highlight for AR&Co, Vans, and Anacapri, that achieved 25%, 23%, and 21% growth. So, these brands are very solid and consistent in the past quarters.
Now, moving on to the channels mix, I'd like to highlight owned stores with 18% growth, and actually 22% growth, and web commerce was 18%, actually. So owned stores, it's worth noting that we've hired, coming from the franchises groups, so in that case, if we rule that out, it would be 18% growth in owned stores. Highlight also for our chart on the right side, our pizza chart that breaks down each channel, reiterating our capacity of distribution, one of Arezzo&Co's strength and its model of distributing channel, with a very well-divided pizza. And owned stores. Now, our financial statement, 12.7% growth with gross margin, and not crediting of PIS/COFINS on ICMS in April for our companies.
We still had excellent performance to impact positively a higher mix of owned brands, channels with relevance to our markdown, and more sales in full price. Our expenses from the beginning of the year, we've been commenting and informing our shareholders about review in our portfolio, reducing expenses, streamlining structures, and we delivered important reduction of SG&A this semester, which reduces even more our fixed expenses. They only grew 2.7% compared with the inflation of 4% and 12.7% growth. Our conversion for EBITDA had an important growth of 230 basis points, achieving 17.8% of EBITDA recurring in the period consolidated, as you can see. Our ROIC and working capital, there's an important message here. That is very important for our working capital, bringing a bit of the past history.
From the beginning of the year, we had 8 additional days in inventory compared to last year, second quarter, already with some improvement, with an increase of 4 days, and we reduced 2 inventory days compared year-over-year. Here, it's worth mentioning our operations in Texas that don't increase. If we reduce that, we will have even more days of inventory. And also, accounts payable in the past 2 quarters, we had a reduction in nineteen days month-over-month. This quarter, we have efficiency of 5 days, so minus fourteen days. And in the fourth quarter, we will have an important gain of resuming accounts payable days year-over-year.
As to accounts receivable, we had a growth of 5 days due to policies, business policies, so we could reach our sell-in targets, which is important for our high summer sales, and we're now delivering to our stores. About ROIC, we achieved 25.8% in recurring ROIC, and our vision for 2023 is new improvement in the index for the fourth quarter, and also in 2024, that will gain more efficiency in working capital, and also CapEx that had a 25% reduction this quarter, year-over-year. Our indebtedness and cash position, our debt is BRL 644 million this quarter. We had important payment in the fourth quarter, third quarter, and our vision for the quarter is very significant, and we will operate, generate operating cash, impacted by EBITDA, net income and important advances in our days of accounts payable.
So these are our main highlights, finance. Now we're gonna open for Q&A. Thank you. Thank you, Sachete, for your presentation, and congratulations for conducting our company so well in finance. Congratulations to your team. Vic, it would be great to have everyone here live, since we have 300 participants in our video conference. You will tell us the questions, and I will have the pleasure of having them from you. We're gonna start with Luiz Guanais from BTG. I want to understand the recovery of volumes in shoes and handbags. How do you see the space of repassing price and average ticket? Thank you, Luis, for your question. First, I want to make a disclaimer that in our earnings release, we discontinue the brand, My Shoes.
Only in the third quarter of 2023 had sales of 255,000 pairs of shoes, and 0 in this quarter. So a reduction of 246,000, um, pairs in My Shoes alone. This is a strategy we announced in March, that we were gonna focus on the AB class. We did this test that started at the end of 2020, of trying to penetrate in B minus C class. And in that fight for price, it's not something that we decided to go into, because it doesn't offer good gross margins. So excluding the effect of our brands, we wouldn't have any drop in volume. I think that answers all the questions about volume. It's worth mentioning also that, as mentioned, we had a target of reducing our inventory, so reducing leftover and reduce sales in markdown.
Our sales in markdown are the ones that generate more volume. For you to have an idea, we had growth in units on full price sales in the third quarter of 2023. So this concern that you are all expressing, and they're always very welcome, is not part of the company's concerns, because we're having a very healthy growth and selling more at full price in our core brands. About this topic also. I would like to thank all the comments about our results. I've asked to benchmark a luxury brand in the international segment. We don't intend to compare to large groups. They don't even report volumes, and other companies that are comparable to Arezzo & Co. in Brazil don't disclose data on average ticket and volume.
But we always decided to be very transparent in our results, and I thank you again for your concern, and say that we're very confident with our strategy, and we are gaining volume in sales at full price, which is our main goal. The next question is Thiago Macruz from BBA. He says, "In this quarter, we saw a gap between performance, that's the adjustment you did in pricing of Arezzo. I want to understand how you have seen the elasticity of the brand, and how Arezzo is impacting the negative growth of Schutz." Thank you for your question. When we presented results of our brands, we showed the consolidated of the brand. We don't open brand per channel.
As I mentioned in my opening comments, the decrease in Schutz was e-commerce, and it was deliberate to reduce the promotion activity on that channel and increase sales at full price, and also due to the monobrand store calendar. So comparing Schutz and Arezzo, there was a strategic movement already happening at Schutz for some time... that is going through this improvement in filtering the customer profile online, and that's a very important process in the long term, to maintain the desirability of Schutz. As of about price, both brands have a very healthy coefficient among them. So an average ticket, Arezzo operates at 309 BRL, and Schutz, 590 BRL. Arezzo went from 290 to 349, so I still have a very important distance between the 2 price points.
And there was a third part of the question, if Arezzo is impacting Schutz negatively? No, it's different audiences, different legacies. It's we have Vicenza now, which we acquired for large market share and increase even more our penetration in the multi-brand channel. It's a very desired brand with low penetration. The growth has been impressive, and also in Anacapri. Arezzo&Co is a platform of brands, and we have to look at the consolidated, and how much we gain in market share. That's our business model, which is the efficient management of each brand and also managing the channels, leading the sales to multi-brand channel. And in monob rand, be it brick-and-mortar or digital, Arezzo&Co had an exceptional performance as well in all channels.
He said about working capital, could you comment what is the dynamic? And in the second half, if there will be a normalization. Do you still see the suppliers fragile, and how should we have an improvement in that dynamic, and also the accounts payable?
Thank you for the question. Excellent point, and just reiterating the message. In the first quarter, it was deliberate and supporting. We supported some of our suppliers at the beginning of the year when we had a much more complex landscape, both inside and outside of Brazil, with very high interest rates. So the answer to your question, we would go back to the accounts payables time in the third and fourth quarter. So it already went back to normal in the third quarter. You will see this in the fourth quarter as well, and you will see this in the results of next year, but they already are in our balance sheet in... compared to 2021 and 2022. So we will have an important cash generation coming from that channel.
About accounts receivable, as I mentioned, we had an increase of 5 days compared to last year due to negotiation with our brands, supporting the franchisees, with a very important sell-in, in our summer collection, in which we supply our stores, both mono brand and multi-brand, for Christmas sales. And we were very aggressive with important cash control to understand limits of managing our working capital, to bring these days and have an excellent Christmas, both in our own stores and also franchisees and multi-brand, achieving excellent sell-out. So the expectations for the end of the year is to balance accounts receivable and get it very close to the—what we had in 2022.
Next question is from Tales, from Safra.
So the number of multi-brands for Reserva is increasing year-over-year—is dropping year-over-year, and the company has increasing the number of channels in the Arezzo brand. Would that be an effect of the maturity of new customers, and would you have space to increase share of wallet, or have they been buying less?
Thank you, Tales, for your question. So about the second part, in 2020, with the change in how we sell in the multi-brand channel, with having digital, with the huge relevance, we were able to achieve and impact many more points of sale than what we did in the past, because the sales were in person, in regional showrooms. So that was one of the things that we gained from the pandemic, and we changed the Arezzo&Co dynamics. So about the number of points of sale, we did grow a lot in the past 2 years, and we believe that to preserve the brand desire, that distribution is already at a healthy level, and we're not planning on opening new points of sale for growth.
So about performance in terms of share of wallet, so selling to the same customer, same store sell in the multi-brand channels, we didn't see Arezzo, right? It was zero distribution, and if we sold 1,000, but obviously, if I grow 10%, it's gonna be 1,100. So my base is higher, and same-store sales sell in-
... because they already have a very high distribution level, so that should go to the level of what we have in the franchise channel for same-store sell-in. And it's worth noting that during the quarters, there's a seasonality in delivering the orders. We launch a number of different collections per year, and occasionally, like high sales, summer, for instance, may be stronger in September, changing the dynamics in October. And we always have to look at same-store sell-in based on LTM. So about the Reserva brand. The Reserva brand had very strong growth. As you can see, the growth is very healthy compared to, products or about their products. A lot of care always, so that we don't have excess use of the brand, always bringing in very noble products for the Reserva brand.
We've seen this phenomenon in the past with brands with very much capital distribution and multi-brand, and they lose brand desire. So these are deliberate and proactive decisions of AR&Co l eadership to preserve the brand desire for Reserva. But even so, we had 3% growth in this quarter. And it's not a channel that we just exist here today, it's a space for distribution. So I can say that we have a sales management system in multi-brand that's very much advanced. We have the digitization of the channel that really makes a difference, and consequently, we make decisions based on what's best for the business in the long term.
So brand, we had expressive growth of 20%-25% that's recurring in the past 2 years, and now going into high single-digit levels, and that should be what the channel will operate in the future in a very healthy way for our company. Next question is from Joao, from Citi. He says, "Sell-in is lower, much lower than sellout. In my opinion, that's a way to improve sell-in and customers buy more. Is that correct? How should we consider that?" Well, perfect. In 2022, we had much higher growth than expected, and the supply chain, dating back to end of 2021, had to be adjusted. So the base for comparison, if we looked at 3Q and 4Q of 2022, is coming from very strong growth from 2021, and also because of the backstock from 2021 deliveries.
And we always have to look at the growth for last twelve months, Joao. So we expect always a balance in the sell-out and sell-in sales. So since October, we had a growth that was greater than 2 digits in sell-out, and sell-in has been months following that pace. We have strong deliveries in November. It's the highest sell-in month for the company, and we expect to conclude all the Christmas deliveries by the first week of December. So it's not about looking at each quarter. You have to look at LTM to understand that. And the purchases are made in advance. Even though the lead time is 60 days, all sales that will be built in 4Q 2023 were sold in August and September, actually. So we shouldn't have any big surprises in that channel.
We'll end December 31, 2023 in an annualized base of a difference between sell-in and sell-out same store sales close to zero. Thank you, Alexandre. Next question is from Dani, from XP. So Dani is asking, about the Schutz performance in Brazil, how can we consider that? We've seen some changes after Milena left and Luciana took over. Thank you for your question, Dani. I'd like to publicly thank Milena for her work during these years, that she was a part of our group of employees. In 2022, we had very strong growth of Schutz, with, especially with the distribution in multi-brand and e-commerce. In 2023, we focused on operating efficiency, and that's what we informed.
It's worth noting, just as on a sidebar, the excellent performance of increasing gross margin and operating leverage of our EBITDA, and that should remain consistent not only for the fourth quarter, but also for 2024. Within that agenda, we've seen an opportunity, regardless of how hard it would be when we have high performance culture, is to unify the executives with an agenda of operating efficiency. Internal benchmarks are always great to have. We've always used the basis of comparisons between brands, channels, and distribution, and distribution of each brand in each channel. Here we saw an opportunity of using that internal knowledge to maintain healthy growth of Schutz in the long term. In the short term, that trend of Schutz being closer to lower growth than Arezzo may happen, but in the fourth quarter, the brand has started well for October and November.
We'll have growth in Q4, so for the brand. Therefore, I don't see that as a point of attention, but instead, it's a result of decisions and deliberations of the company for the 2023 planning. Still from Dani, she'd like an explanation about the volumes in Reserva. Well, when we look at AR&Co, the way we look at the results or break down the results is a result of all the brands in there. So Reserva is the main one, but there's a high growth for the Oficina brand, and even though in the initial stages, we already have the growth in terms of price point for the business brand. So it's hard to calculate what a Reserva brand is when you look at the total for AR&Co.
But about the Reserva brand data, it has high price stability across 2023, even considering the inflation that we've had in the, in all sectors of the economy. So what we have for 2024 and the—we've already sold for winter, products are being produced, and obviously, when you look at a brand price, you have to compare like for like, right, in terms of products. So the main products of Reserva that are T-shirts and polo shirts, they don't have a price increase, but in some point, like in winter, like jackets, they've been highlighting. We can highlight them. That was the case in 2023, at, at where the average ticket price would increase. But it, it does have huge price diversity, and our assumption is that prices can't scare off customers.
So Reserva delivers an exceptional value for money equation and the work that we do, that's where you see all the work we do. Next question is from Pedro, from Bradesco. Pedro's asking about gross margin, so there's a positive highlight for the quarter. It would be nice if we can understand better what has leveraged that in the channels and also about full price. What about the fourth quarter? Is the appetite at the end is still healthy, and if markdowns are low? Pedro, thank you for your question. I'll start off with the second part of it. We started the month of October, and that equation is better than what was found in 3Q 2020, 2022.
Last year, we had a pretty hectic period with the presidential elections, World Cup, a moment that was completely different from history, and that made us have sales, more markdowns than what we wanted. And now in 2023, that stable, full-price has strong growth, and today, I was even thinking that we should have same-store sales, full-price open, because the numbers are very positive and that trend should continue. While we continue to work in the assertiveness of collections and new inventories and lowering the markdowns, less markdowns. And as I mentioned, in November, you see many companies that are going into Black Friday already, and we've seen promotions. We're gonna do ours in the last month of November. In the first days of the month, we still have much higher full-price sales than what we found in 2022. And what else?
About gross margin. Our gross margin regarding sell-in, it's pretty much the same. So we know that our pricing system comes from product, and we consider the best value perceived per product, and then we do reverse engineering. So that product to be sold at 349 BRL, what are the raw materials that it should be made from? What's the production process? And in sewing, that's where we have more higher labor costs. And the markup from B2B is the same. So the gross margin variations are a lot about sell-out, and obviously, the channels make that could interfere in the consolidated margin of Arezzo&Co. So the 54 level...
Well, sorry, I was taking my kids to school, and she loves finance, and she's like, "58.3 from our figures, is that good?" But I'm like, "55 is ideal." So I was telling my daughter about that and achieving that in Brazil, and that's the range that we're going to operate on. We can always improve that. So 5 percentage points to improve our range and our channel. It's gonna be 53.8%-60%, and or the consolidated for the company.
Petra has another one about store openings. He says, "The company has reinforced openings for 2023. That suggests a fourth quarter with an increase in sales space. Could you give us more information about that agenda and the brands that are priority?
You're right. When you look at the snapshot of the 9 months, it's really hard to believe that we'll achieve guidance, and that situation is a result of a tense beginning of the year with a lot of uncertainties regarding interest rates. And franchisees need capital to open operations, right? Be it own capital, third-party capital. So that was very difficult in the beginning of the year and a lot of work for our team.
... and being part of the ABF trade show that was in July this year, so we could increase the number of leads. And based on that, it was really face-to-face work. So you see that different than what we saw in 2021, 2022, was through the franchise channel. And the most stores that we grew in the past years were own stores, where we can actually delivery and having the capital for that, if we have the capital for that, and opening where we believe would have a good return on employed capital. For 2023, most openings will be through franchises and mainly in the fourth quarter. And that shows it's all the processes for the stores are being ongoing, and we should have changed the range and guidance. The next question is from Vinicius, from UBS.
Thinking, can you comment about the financial health of the franchisee network and the expectation of growing these channels? Excellent point. In our performance of the franchisees, our indicators are very relevant that they're controlled every day in per brand and business area by Luciana, which is our indicators of the sell out and sell in, and it has had a very good performance in the past 12 months-- past 24 months. And the last quarter, that comparison of sell in and sell out, is one of the indicators that we communicate with the performance of gross margin, with less markdown and more full price, also happens in our franchisees. So they were, had excellent performance. The cycle of 2021, 2022 was very hard on all retailers, and, and the performance have been improving, the sales volume increased, and we think that we started 2020...
We're gonna start the year of 2024 with controlled inventory, excellent sell-out performance, and a very solid network. We think it's gonna be a year of relevant growth achievement for our, our channels. The next question is from Irma, from Goldman Sachs.
We would like to understand a bit better the growth in the United States of Schutz in the third quarter, and how are the outlook for 2024. So how are you thinking about the outlook for the international business going forward?
Good morning, Irma. Thank you for your question. Let's start talking about Schutz third quarter of 2023.
It didn't show growth in sales due especially to retraction in department store sales, which is a current reality, and I also believe that will continue in 2024, due to the balance sheets, communicated by the retailers and department stores, and also because of the inventory volumes they show. So Schutz has an excellent performance inside the stores where it is sold, especially at Nordstrom, with strong growth of online sales, and it has had a great performance in other department stores. So the distribution channel in department stores and online commerce is lower than it was in the past, and this trend should continue. E-commerce sales, which accounts for an important share of the Schutz brand, it was reduced, in its markdown prices with a strong impact on gross margin.
Brick-and-mortar stores of Schutz that, except for the store on Broadway in May, has had a flat performance. About profitability, I would like to highlight the Arezzo brand performance that was launched officially in September at Macy's, and it shows the best financial performance as we showed. Arezzo has had exceptional performance. It's much higher than expected. The sales for the summer collection, 2024, were beyond our expectations, so we're very happy with the performance of the Arezzo brand in the United States. About profitability, we had a very challenging year for that brand. A sidebar, we open not only our international revenues, but also our financial performance of results of the last line of international operations. That's an important sidebar that we always try to show.
In 2024, this number will get better, but that will be due to some of our decisions in the future and some locations in the U.S. that are ongoing, and also distribution on monobrand stores, because they have been showing consistent negative performance. We think that some locations don't make sense for premium awareness.... These decisions will be taken at the beginning of 2024, and they will be very positive for the results of our U.S. operations for next year. So we want to reduce local expenses. More work in the back office in Brazil, and reducing expenses, especially a bit with the few monobrand stores. Thank you, Alexandre. Our next question is from Ruben, from Santander.
How do you see this beginning of the fourth quarter in terms of, of revenue? Can we consider something similar to what we had before?
Thank you, Ruben, for your question. Yes, October closed very much in line with what we had in the third quarter. The first days of November are very healthy, at full price sales and our expectation for the next days of the month. The weight of sell out in our revenue in November and December is very relevant, and we're very confident with all the strategies and all the supply that we did in those channels, that we manage the sales, own stores and e-commerce, but also the purchases made by our franchisees and multi-brand partners. We believe we will have an excellent Christmas season in line with the growth that we had in the third quarter. And we started well with our summer collection, providing excellent results. Thank you. The next question is from Vinicius.
After another quarter of growth, of strong growth of AR&Co, how do you see growth to be able to maintain that high level in the next months? And how is the competitiveness of Reserva and Co? The competitive landscape puts us in a privileged position due to our hard work and what we were able to achieve in terms of brand awareness, of both brands, and experience in monobrand channels, digital experience. To date, we do master the preference, either for casual sneakers and Reserva in men's apparel. About maintaining growth, we are much beyond what our business plan was expecting. It's very intuitive for our business since 2019, so we're very confident that the health, the growth of our AR&Co growth goes beyond the numbers. It's a long-term strategy, so the number of stores opened, multi-brand, being chosen carefully.
We have Reserva, also Oficina and Vans. We have a base of about BRL 1.5 billion in 2023. So in terms of percentage, the growth will be lower, but it will generate a good financial volume to increase our revenues. And we did communicate that at every quarter. We know the full potential of Reserva. We acquired them in 2020. It was BRL 800,000-BRL 1 billion. Now we already are beyond BRL 1.5 billion. So the product categories that the brand offers, we're gonna open in November. This is very important. It's not in our materials. I would like to invite you all to go to the first Reserva mega store at Morumbi Shopping. It's gonna have 280 square meters with all the core labels distributed in the store.
This might be the new format for the future of Reserva. Every year, we improve product category. As we speak, we're gonna start our sunglasses line. So I can't define a percentage. It around 20, we should maintain high teens for 2024. Generating hundred% growth of Arezzo&Co. Here's another one. After a few months from these acquisitions of Paris Texas and Vicenza, how is your vision about new licenses agreements? I'm gonna start with the second part of your question. About licenses, we have an open agenda. We have a team that is dedicated to the many offers of international brands that have AR&Co as a good business for them to operate in a healthy way in Brazil.
We have many analysis, but they have to follow some criteria that I mentioned, a brand that has to have very strong awareness all around the country, and a business that can source in Brazil. We don't want to depend on long-term cycles of imports, and it has to have full potential between BRL 300 million and BRL 500 million to justify investing our time. It's a very open agenda. We have a lot of learnings with international groups, and we're always negotiating. As about acquisitions, as we mentioned very explicitly in the second quarter, 2023, I have the opportunity to attend some conferences. We put a lot of things in the parking lot on standby to focus on creating efficiency. With the results in the third and fourth quarters, this is what we're going to continue doing.
We're gonna wait 2024 to start, and all the tax changes that Brazil will go through in the next month. So we have to focus internally on our efficiency. About our learnings, we constantly learn. We have a very active PMI department. We have the capacity of do the right corrections in our systems and master our back office operations. Maintaining the owners of the brands with creative freedom and to position their brands. Of specific learnings, I could say, it's a business that penetrates categories that are close to our core, and they require learnings in the supply chain. We also have a team dedicated to that. We have the opportunity of replicating the model of our core business and choose and verticalize R&D, and several other learnings. But I think that all the acquisitions that were done were very accretive.
BAW already is showing excellent results in the third quarter, not only in revenue, but also in profitability.
Thank you, Alexandre. I have a last question for Sachete. I think you read all of them. Yes. I have another topic to discuss with Sachete about indebtedness. What is your expectation of the company for the next quarters? And if you could talk a little bit more about that.
Hi, thank you for the question. About that, we really have to think about the company's balance sheet capability and our strong cash generation and confidence that we have for, for Q 2024—no, 2023. Actually, 2023 and 2024. So... And then, but more relevant aspect in debt is 2024, so in that scenario, we have high confidence level and capability of paying those amounts.
We are, though, redefining that profile to extend part of that to 2025, but we'd like to reiterate our capacity and solidness of our balance sheet and vision and building consistent results and cash generation in the next 4 quarters, where we should see that beginning in fourth-- Q 2023 and all of 2024. Easily explained by lowering inventory, increasing accounts payable from suppliers, and the stabilization of accounts receivable, and lowering CapEx coefficient on top of the EBITDA percentage. We've always generated a lot of cash. That's our history, and the negative cash currently is the result of a number of acquisitions, and many were paid lump sum. So we're very confident of maintaining that level that we have in the third quarter, be it in absolute figures or as a coefficient of net debt over EBITDA, which we believe are healthy levels for the company.
Those are your questions. So I'd like to take this opportunity to, first of all, thank everyone, but also to invite you. Are we at the end? It's pretty much almost a personal invitation, but I do. It does have a strong connection to Alexandre Birman and Arezzo&Co. The day after tomorrow, our founder, Anderson Birman, my dear father, will launch his book of learnings, memoir, and thinks about the 50 years since the foundation of Arezzo&Co. It's gonna be a pleasure to have you there with us at the Travessa Bookstore at the Iguatemi Mall as of 5:00 P.M. So there, we will have an area reserved for that, and I'm sure Anderson will be very happy to see you there.
Soon, in less than 30 days, on December 7th, in the afternoon, we'll have our Investor Day, an annual agenda that we have since 2011. We're really counting on your presence. It's an excellent opportunity for us to present even more details about our planning for 2024, in a solid and mature way that we've been managing our business. Thank you for participating. Have a great afternoon.