Havaianas brand drives Alpargatas to highest-ever quarterly EBITDA

Brazilian footwear giant Alpargatas recorded its highest nominal quarterly EBITDA in history during the first quarter of 2026, supported by strong volume growth in its flagship Havaianas brand. The company achieved an adjusted EBITDA of 299.50 million reais (60.55 million dollars), representing an expansion of 5.50 percentage points compared to the same period in 2025.

In the quarter, Havaianas net revenue totaled 1.2 billion reais, representing an increase of 12.5 percent, driven by growth across all operations. Havaianas Brazil, net revenue for the quarter reached 909.1 million reais, with growth of 13.2 percent, while international net revenue for the quarter reached 307.5 million reais, up 10.2 percent.

Havaianas Brazil expands market share

In its domestic market, Havaianas Brazil sold 54.90 million pairs, an increase of 7.60 percent compared to the first quarter of 2025. Net revenue for the Brazilian operation rose 13.20 percent to reach 909.10 million reais.

Gross margins in Brazil reached a record 49.50 percent for a first quarter, benefiting from manufacturing productivity and a more favourable product mix.

The Havaianas international operation showed signs of scale recovery, with sales volumes increasing by 14.80 percent to 6.60 million pairs. Performance was particularly strong in Europe, where volumes grew by 18 percent to 3.50 million pairs, marking the sixth consecutive quarter of positive trends for the region.

In the US, the company is transitioning to a new business model involving distributor intermediation. While this change resulted in a 3 percentage point decline in international gross margin to 61.80 percent, it significantly reduced operating expenses. US volumes rose 161.40 percent to 1.20 million pairs as the new partner built up inventory for the upcoming season.

Distributor markets in Asia Pacific, the Middle East, and Africa saw a 17.40 percent decline in volume, primarily due to geopolitical conflicts impacting sales in Israel. Despite these challenges, international EBITDA grew 88.60 percent to 62.20 million reais.

Rothy’s faces margin pressure from import tariffs

The US-based sustainable footwear brand Rothy’s, in which Alpargatas holds a 48.80 percent stake, reported a 7.80 percent increase in net sales to 46.80 million dollars. Growth was supported by the expansion of its retail network to 36 stores and higher penetration in business-to-business (B2B) channels.

However, Rothy’s recorded an EBITDA loss of 2.20 million dollars for the quarter. Profitability was hindered by a 5.40 percentage point decline in gross margin, largely due to the 4.80 percentage point impact of US import tariffs on products brought from China during 2025. Adverse weather conditions also forced temporary store closures, which limited the brand’s ability to dilute fixed costs.

Looking ahead, management intends to focus on sustainable expansion in Brazil and the gradual recovery of international volumes as the new US business model matures.