Havaianas owner Alpargatas reports record performance in Brazil and international recovery

Brazilian footwear giant Alpargatas, the parent company of Havaianas, has concluded its 2025 fiscal year with record-breaking results in its domestic market and a return to profitability for its international operations. The group reported a net income of 567.89 million reals (107.88 million dollars) for the full year, representing the highest annual result in the history of the company. In the fourth quarter ending December 31, 2025, consolidated net revenue reached 1.26 billion reals, an 11.8 percent increase compared to the same period in 2024.

During the year, Havaianas’ consolidated operations recorded net revenue of 4.5 billion Brazilian real, up 11 percent compared to 2024. In the quarterly dynamic, the company reported 1.2 billion Brazilian real in net revenue, up 12 percent. Consolidated EBITDA reached 866.8 million Brazilian real in 2025, representing a growth of 154 percent, driven by the significant improvement in profitability both in Brazil and internationally.

Record margins in Brazilian domestic market

The Brazilian operations of Alpargatas achieved significant milestones during the year, with the fourth quarter marking the first time in history that domestic sales surpassed 1 billion reals in a single quarter. Net revenue for Havaianas Brazil reached 3.42 billion reals for the full year, a 10.2 percent increase.

Profitability in the domestic sector saw a sharp incline, with a record gross margin of 48.3 percent for the full year. In 4Q25, the gross margin for Brazil reached 50.9 percent. The EBITDA for domestic operations reached 824.70 million reals in 2025. Management attributed these gains to disciplined pricing, an improved product mix, and greater manufacturing and logistics efficiency.

The international operations of Alpargatas returned to growth and profitability in 2025, delivering an annual EBITDA of 42.10 million reals. This follows two years of losses in the international segment. Total international volume increased by 5 percent over the year to 23.30 million pairs, while net revenue grew by 14.2 percent to 1.09 billion reals.

Strategic decision on Rothy’s stake

Alpargatas also provided an update on its investment in the US-based sustainable footwear brand Rothy’s. While Rothy’s reported an 8.1 percent increase in annual revenue to 227.70 million dollars, the Alpargatas board of directors decided in December 2025 not to exercise the option to acquire the remaining 51 percent stake in the asset.

Alpargatas will remain a relevant shareholder, currently holding a 49.2 percent equity interest in the brand. Rothy’s faced pressure on its gross margins during the year due to US tariffs on products imported from China, though it still delivered 17.90 million dollars in EBITDA for 2025.