The Brazilian shoe giant Alpargatas achieved an increase in sales in the first quarter of 2026
The highest nominal quarterly EBITDA in the company’s history was achieved in the first three months, Alpargatas announced on Thursday. Earnings before interest, taxes, depreciation and amortization (EBITDA) were supported by strong volume growth from flagship brand Havaianas. The company achieved an adjusted EBITDA of 299.50 million Brazilian real (51.8 million euros). This corresponds to an increase of 5.50 percentage points compared to the same period last year.
In the quarter under review, Havaianas’ revenue was R$1.22 billion. This corresponds to an increase of 12.5 percent, driven by growth in all business areas. Havaianas accounts for almost all of the group’s sales, which is why Alpargatas’ sales also increased by 12. percent to 1.23 billion reals.
At Havaianas Brazil, net sales reached R$909.1 million in the quarter, with growth of 13.2 percent. International net sales reached R$307.5 million, an increase of 10.2 percent.
Havaianas Brazil expands market share
On the domestic market, Havaianas Brazil sold 54.90 million pairs. This represents an increase of 7.60 percent compared to the first quarter of 2025. Net sales of the Brazilian business increased by 13.20 percent to R909.10 million. Gross margins in Brazil reached a record high for a first quarter at 49.50 percent. The reason for this was manufacturing productivity and a more favorable product mix.
In Havaianas’ international business, sales volumes increased by 14.80 percent to 6.60 million pairs. The development was particularly strong in Europe, where volumes grew by 18 percent to 3.50 million pairs. This is the sixth quarter in a row that the region recorded positive trends.
In the USA, the company is making the transition to a new business model with distributor brokerage. Although this change resulted in a three percentage point decline in international gross margin to 61.80 percent, it significantly reduced operating costs. US volumes rose 161.40 percent to 1.20 million pairs as the new partner built inventory for the coming season.
The distribution markets in Asia Pacific, the Middle East and Africa recorded a volume decline of 17.40 percent. The main reason was geopolitical conflicts that affected sales in Israel. Despite these challenges, international EBITDA grew by 88.60 percent to R62.20 million.
Rothy’s under pressure on margins due to import tariffs
US 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. The growth was supported by expansion of the retail network to 36 stores and higher business-to-business (B2B) penetration.
However, Rothy’s reported an EBITDA loss of $2.20 million in the quarter. Profitability was impacted by a 5.40 percentage point decline in gross margin. The main cause was the 4.80 percentage point impact of US import tariffs on products from China in 2025. Unfavorable weather conditions also forced temporary store closures, limiting the brand’s ability to reduce fixed costs.
Looking ahead, management plans to focus on sustainable growth in Brazil. In addition, there should be a gradual recovery in international volumes as the new US business model matures.
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