Havaianas parent Alpargatas posts 11.3 percent net sales growth in second quarter

Brazilian footwear manufacturer Alpargatas SA (Alpargatas), the parent company of flip-flop label Havaianas, reported its financial results for the second quarter ended June 30, 2026. Consolidated net sales reached 1.23 billion Brazilian reals (0.24 billion dollars), representing an 11.3 percent increase compared to 1.10 billion Brazilian reals in the second quarter of 2025.

The top-line expansion was driven by a 9 percent increase in total volume, with 53.30 million pairs of footwear sold globally. Adjusted EBITDA, expanded 48.5 percent year-over-year (YoY), to 286 million Brazilian reals. Adjusted EBITDA margin widened by 5.80 percentage points to 23.3 percent, marking the highest Q2 operational margin performance in the company's recording history.

Net income for the quarter surged 95.1 percent YoY to 169.70 million Brazilian reals, up from 87 million Brazilian reals in Q2 2025. Executive management attributed the profitability growth to production scale recovery, cost discipline, and operational efficiencies across planning and commercial execution.

Domestic volume acceleration and marketing campaign for Havaianas Brazil

In its home market, Havaianas recorded a 16.7 percent YoY increase in net sales to 809.20 million Brazilian reals. Sales volumes in Brazil expanded 8.6 percent to 45.60 million pairs, supported by a 13 percent increase in sell-out performance.

Gross margin for the Brazilian division reached a Q2 record of 47.9 percent, up 2.20 percentage points YoY. EBITDA for Havaianas Brazil rose 19.9 percent to 165.70 million Brazilian reals, yielding an EBITDA margin of 20.5 percent.

During the three-month period, Alpargatas increased its marketing deployment in Brazil to approximately 10 percent of domestic net sales, aligned with global promotional activations surrounding the 2026 FIFA World Cup. The promotional push included the 'Molho Brasileiro' campaign featuring brand ambassador Vinícius Júnior, alongside retail partnerships.

European recovery supports Havaianas International

Havaianas International net sales grew 2.3 percent YoY to 405.80 million Brazilian reals, while total international volume rose 11.9 percent to 7.70 million pairs:

Europe: Recorded a 20.9 percent volume increase to 4.40 million pairs during its peak summer trading period. Net sales for the region expanded 20.6 percent YoY to 308.50 million Brazilian reals.

US: Volume contracted 30 percent to 0.60 million pairs due to seasonal delivery shifts under its revised business model transition. On a cumulative first-half basis, US sales volume grew 40 percent YoY.

Distributor markets: Operations across Asia-Pacific, Latin America, and the Middle East grew 12.1 percent in volume to 2.80 million pairs, with Latam and Asian demand offsetting geopolitical disruptions in the Middle East.

Consolidated gross margin for the international division widened by 3.20 percentage points YoY to 72.8 percent. EBITDA for Havaianas International expanded 105.2 percent to 117.40 million Brazilian reals, yielding a margin of 28.9 percent.

In secondary portfolio assets, US footwear label Rothy's Inc. (Rothy's), in which Alpargatas holds a 48.8 percent equity stake, recorded standalone net sales of 61.20 million dollars, down 2.9 percent YoY amid e-commerce promotional rationalisation. Gross profit for Rothy's grew 6 percent to 41 million dollars, supported by a tariff reimbursement from the US government on goods previously imported from China.