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Alpargatas’ net revenue up by 11.4%

Nov 12, 2019 Brazil
Alpargatas’ net revenue up by 11.4%
Alpargatas’ net revenue topped 1 billion Brazilian Reais in the third quarter, up by 11.4% on a year-on-year basis
Alpargatas’ net revenue totalled 1.037 billion Brazilian Reais (0.25 billion US dollars) in the third quarter of 2019, up by 1.4% on a year-on-year basis, driven by a double-digit growth in all business lines: businesses in Brazil (Havaianas Brazil, Mizuno and Osklen) grew by 10.9%, the Havaianas international operations increased by 10.4% and the Argentina's business grew by 15.5%. Consolidated net income for the period reached 58.5 million Brazilian Reais (14.05 million US dollars), translating a 51.2% fall year-on-year.

Havaianas

Havaianas increased its market share in all sales channels in Brazil. The volume of Havaianas in Brazil increased by 5.5% in the third quarter. Net revenue on a year on year basis was driven by the increased sell-out in the direct channel. Average prices rose above inflation, driven by the launch of the new collection (which took place during the second quarter) and a better mix of selling channels. During the third quarter, in the direct consumer channels, revenue rose by 10% in Havaianas mono-brand stores on the basis of the DTC (same store sales + ecommerce) concept.

The international sandals business increased net revenue by 10.4% in the same period, spearheaded by the LATAM (Latin America) and APAC (Asia Pacific) regions. This result was driven by the recovery in Argentina, where the company has a new distributor, and by the increased sell out in Duty Free as a result of better spaces and new points-of-sale in Colombia. In the APAC region, the brand has entered into a partnership with JD.com in China (in addition to the partnership with Tmall.com), and has now new 50 mono-brand stores in that region this year. There were both the opening of new points-of-sale and the conversion of multi-brand stores, which already sold Havaianas products, into exclusive stores, after the opening of Alpargatas office in Hong Kong.

Osklen

Net revenue increased by 15.6% in the third quarter compared to similar period in 2018, and noteworthy were the larger share of footwear in the mix of products and the expansion of omnichannel in the mix of channels. The DTC (same store sales + ecommerce) concept recorded growth for the 9th consecutive quarter, reaching 13% compared to third quarter of 2018.

Mizuno

Volume increased by 4.4% in the third quarter of 2019. Mizuno’s ecommerce platform, mainly responsible for this increased volume, recorded a double-digit growth in the first three quarters of 2019. Double digit growth was also recorded in the mid, basic, and soccer categories, following the launch of new models (cool line). Another Mizuno outlet store was opened in the city of Guarulhos (São Paulo).

Other Updates

In August 2019, Alpargatas moved to its new headquarters in the city of São Paulo, leaving a 14-storey single-user building for a new three-storey address awarded a LEED sustainability certificate, designed with collaborative work spaces and hyper connectivity.

During the quarter, Alpargatas also opened a new distribution center (DC) designed for multichannel sales in the city of Extrema, in the State of Minas Gerais (MG). This new DC is part of the plan to integrate Havaianas physical stores – its top business – with ecommerce.

Image credits: PhilippinesThePrintableCoupon.com

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