Havaianas sold 1 million pairs in the US during the third quarter, an 82 per cent year-on-year increase, as the footwear brand continued its transition to a new business model.
The performance contributed to stronger global results, reporting net sales of $217.37 million, up 11 per cent year-on-year. Global volumes rose 8 per cent to 60.6 million pairs.
Management said sales from distributors to retailers remained aligned with shipments into the channel, with no inventory build-up.
Overall, the brand’s gross profit rose 13 per cent to $118 million, with an EBITDA margin of 23 per cent. Havaianas attributed the improvement to operational changes, pricing initiatives, improved efficiency and tighter cost control.
Across international markets, net sales reached $42.8 million, with pairs sold up 15 per cent year-on-year as Havaianas rebuilt scale through commercial discipline and operational efficiency.
In Europe, the brand sold 1.8 million pairs, up 13 per cent, supported by stronger consumer demand and a better channel mix that lifted average selling prices.
“Our Q3 performance in Europe reflects a commercial strategy focused on building a consistent, aspirational business that meets the preferences of consumers in the region,” the company said.
In Brazil, Havaianas sold 55 million pairs, up 7 per cent from the same period last year, while sell-out rose 8 per cent.
“This performance reflects the adjustments we implemented in channel dynamics, delivery execution and product portfolio,” the company said.
In markets served through independent distributors across Asia-Pacific, the Middle East and Africa, and Latin America, volumes are up 2 per cent to 2.9 million pairs.
Havaianas’ parent company Alpargatas reported an 11 per cent increase in adjusted EBITDA for the quarter, with management pointing to stronger operations and progress from its three-year transformation plan.
Its other major brand, Rothy’s, also recorded growth, with net sales increasing 12 per cent to $51 million, supported by new store openings across its owned retail and wholesale channels.
Looking ahead, Alpargatas said its third-quarter results reflected the consolidation of changes made over the past three years and reinforced its confidence in the group’s strategy.
“Confident that our greatest asset is the Havaianas brand, we will continue investing to support our commercial operations as they gradually gain scale and to sustain the profitability levels we have achieved,” the company added.
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