“We remain committed to financial discipline, continuous pursuit of efficiency, and active inventory management throughout the supply chain. Our strategic priorities are well-defined: strengthen profitability in Brazil, rebuild scale and efficiency in Europe, execute the business model transition in the United States, and intensify our focus on key distributor-led markets”, reads the company’s statement.

First Half Results

In the first half of 2025, Alpargatas reported net sales of 2.19 billion Brazilian reais (346.9 million euros), an increase of 12.6% on a comparable basis to the same period of last year. According to the company, “this increase reflects an improved channel and product mix across both the Havaianas Brazil operation and international markets”.

During this period, 88.8 million pairs of Havaianas products were sold in Brazil, generating net sales of 1.47 billion Brazilian reais (232.8 million euros). This represents growth of 4.6% and 14.1%, respectively, as compared to the first half of 2024.

In terms of foreign markets, 12.7 million pairs of Havaianas were shipped abroad in the first half, which was a 12.6% decrease, as compared to the same period in 2024. Nevertheless, this translated into net sales of 675.6 million Brazilian reais (107.0 million euros), a 9.6% increase compared to the first half of 2023.

In particular, although first half Havaianas net sales increased by 16.9% year-on-year in Europe and by 31.6% in the US, they declined by 17.9% in International Distributor Markets (IDM). This was due to ongoing efforts to improve commercial dynamics with clients and reduce inventory in certain countries, which impacted sales volume during the period.

It’s also worth noting that Alpargatas “took a critical step forward” in shifting its business model in the US during this period. This shift aims to address the operational profitability challenges by significantly reducing costs, while also unlocking opportunities for broader distribution.

Rothy’s net sales also increased in this first half, rising by 14.2% to reach 106.4 million Brazilian reais (16.9 million euros), as compared to the same period last year. Alpargatas emphasised that it is continuing to monitor the US tariff agenda and its potential impact on Rothy’s business. Currently, no significant short-term impact is expected due to the margin structure of the operation.

In the first half of this year, the Brazilian company achieved a 121.9% increase in adjusted EBITDA to 398.5 million Brazilian reais (63.1 million euros), on a comparable basis to the same period of the previous year. Alpargatas’ normalised net income sharply increased by 250.2% year-on-year to 220.1 million Brazilian reais (34.9 million euros).

1BRL = 0.16 EUR

Image Credits: havaianas-store.com