Havaianas lifts Alpargatas sales as US volumes jump 82%

By Tom Whitfield

Havaianas sold 55 million pairs in Brazil in Alpargatas’ fiscal 2026 third quarter, driving the Brazilian footwear group’s net sales up 11.1% to BRL1.24 billion. Net income rose only 2.4% to BRL175.5 million from BRL171.3 million, Alpargatas reported on Monday.

What drove Havaianas’ growth?

Group net sales increased from BRL1.12 billion a year earlier. Havaianas generated BRL1.23 billion, up 11.1% from BRL1.10 billion, while Rothy’s also recorded sales growth.

Havaianas Brazil posted net sales of BRL989.7 million, up 13.5% from BRL872.1 million. The international arm reached BRL235.6 million, a 2.3% increase from BRL230.3 million.

The company linked brand growth to an 8% increase in pairs sold. Brazil accounted for 55 million pairs, while international operations sold 5.6 million. The volume split reinforces Brazil’s role as the main growth engine.

CEO Liel Miranda told analysts that the quarter showed: “all of our geographies are ready to keep growing and increase our participation in all of our priority markets where we operate in.” The statement is broader than the regional data, which showed international Havaianas sales rising only 2.3%.

He added that all international geographies showed growth. Europe grew 17% in the first nine months of fiscal 2026. He also cited growth in U.S. sell-in and sell-through, defined as distributor sales to retailers. The distribution market spanning Latin America, Asia and Africa showed a recovery.

How far has the US model progressed?

Alpargatas said Havaianas’ transition to a new U.S. business model was progressing well. Quarterly sales volume reached 1.0 million pairs, up 82% from fiscal 2025’s third quarter. The nine-month total reached a record 2.7 million pairs.

U.S. sell-through tracked sell-in. Alpargatas reported no inventory build-up across the channel. Better commercial performance and operating efficiency produced the segment’s first positive third-quarter EBITDA.

Miranda said the U.S. priority is to keep expanding distribution in 2027. He described the international priority as another year of expansion and growth in 2027, with Havaianas seeking greater relevance during the European summer.

Why did Rothy’s expansion remain unprofitable?

Rothy’s net sales rose 12.3% to $50.9 million from $45.3 million. Seven new owned stores and wholesale growth drove the increase. The business operated 40 owned stores at Sept. 30, compared with 33 in the third quarter of fiscal 2025.

The expansion did not produce a profit. Rothy’s reported a $2.6 million net loss and a negative 5.1% net margin. The margin deteriorated by 3.5 percentage points from the prior year, showing that sales growth had not yet translated into earnings.

On U.S. store expansion, Miranda said the pace would not match the previous doubling. The company intends to add doors while prioritizing revenue per store, better execution and brand visibility. The test is productivity, not only a larger network.

Alpargatas has also expanded Havaianas’ men’s and kids’ assortment. Miranda said the brand is gaining grocery-channel market share and specialized-channel volume in Brazil, which he described as long-term work. He did not quantify either claim.

What does this change for suppliers and distributors?

Alpargatas disclosed no factory orders, supplier commitments, capacity investment, sourcing-country changes or tariff lines. The results therefore describe channel demand and retail execution, not a confirmed production cycle. The commercial evidence supports measured replenishment in Brazil and cautious U.S. expansion, not an assumption of accelerated factory orders.

For sourcing teams, the decision is to treat the results as a channel-demand signal, not a factory-volume commitment, and to require firm order and capacity guidance before expanding supply against the 2027 growth plan.