Brazil-based Alpargatas reported that sales in the second quarter totaled Brazil Real $1.2 billion, representing an increase of 11.3 percent year over year (y/y). Volumes reached 53.3 million pairs, up 9.0 percent y/y. The company’s flagship Havaianas was boosted by 17 percent growth in Brazil and 22 percent in Europe. Sales fell sharply in the U.S. due to the shift from a direct to a distributor model, but U.S. volume was up 40 percent in the half.

EBITDA grew 54.1 percent to $R269.1 million. Adjusted EBITDA gained 48.5 percent to $R286.0 million. Consolidated gross margin reached 56.3 percent, expanding from 54.7 percent the previous year

Alpargatas wrote in its earnings press release, “Continuing our long transformation journey, we celebrate once again, concrete advances on several fronts that we have defined as priorities. The results recorded in 2Q26 consolidate the effectiveness of the initiatives implemented and the strategic decisions made along this trajectory. Alpargatas recorded an Adjusted EBITDA of R$286 million, with an EBITDA margin of 23.3 percent, the best result for a second quarter in our time series. We have been able to keep our brand stronger every day, which also translates into the resumption of our growth, both in Brazil and in the international market. This combination of sales growth with cost and expenses discipline has allowed us to achieve healthy and growing margins. More than celebrating the gains so far, we remain confident in our strategy and committed to ensuring that Alpargatas is well prepared to capture the opportunities ahead.”

Alpargatas said the net sales per pair benefited from the improvement in the channel mix in Brazil and positive performance in it international operation, especially in Europe. The EBIT improved benefited from “a recovery in production scale, sustained service levels above 80 percent, combined with a stronger end-to-end integration across planning, manufacturing, and commercial execution.”

Havaianas Brazil Sales Expand 17 Percent in Q2
In Havaianas Brazil, sales for the quarter reached R$809.2 million, growth of 16.7 percent y/y, with a 7 percent increase in net sales per pair, Alpargatas said, “The result continues to be driven by the better product mix across all channels.”

Brazil volumes were 45.6 million pairs in 2Q26, representing an increase of 8.6 percent compared to 2Q25.  Alpargatas said that after pulling forward volumes in the previous quarter to support the new collection launch, Havaianas Brazil “captured the results of the adjustments made in channels’ dynamics,” with a growth of 13 percent in sell-out.

Alpargatas said, “We remain focused on the balance between sell-in and sell-out seeking a healthy inventory balance across the chain. In the last twelve months, we registered 2.4 million more pairs in the chain, a stock considered normalized for the operation. In the period, the food operation market share totaled 79.7 percent, representing a gain of 2.1p.p. (percentage points) in the annual comparison, with good performance in both the modern and traditional channels.”

Havaianas Brazil’s EBITDA reached R$165.7 million in the quarter, representing growth of 19.9 percent compared to 2Q25 and marking the highest EBITDA ever recorded for a second quarter. The EBITDA margin also expanded by 0.6p.p., totaling 20.5 percent. This margin advance mainly reflects the 2.2p.p. expansion in gross margin, partially offset by the negative impact of higher marketing investment in the period.

Alpargatas said of Havaianas Brazil, “This quarter, we increased marketing investments, totaling about 10 percent of net sales in Brazil, driven by the World Cup’s activations. It is worth mentioning that, although marketing investments represent an expansion of 3 p.p. compared to 2Q25, the last 12 months level totaled 8 percent of net sales, a level that we consider healthy for the brand in the Brazilian operation. Investments related to the World Cup are part of the brand’s global calendar and reflect our strategy of maintaining a frequent and relevant connection with consumers, taking advantage of moments of great global mobilization and strong engagement of the Brazilian public.”

Havaianas International Sales Gains Slowed by U.S. Shift to Distributor Model
In the Havaianas International operation, net sales for the quarter reached R$405.8 million, with growth of 2.3 percent y/y. This growth reflects successful execution during the quarter of higher seasonality in Europe, as well as good performances in Latin America and Asia in the period.

Volume increased 11.9 percent, totaling 7.7 million pairs, distributed as follows: (i) 4.4 million in Europe (+20.9 percent); (ii) 2.8 million via independent distributors (IDM) (+12.1 percent); and (iii) 0.6 million in the U.S. (-30 percent).

Sales in Europe reached $R308.5 million, a gain of 20.6 percent. Alpargatas said, “In Europe, the adjustments implemented in recent years, both in commercial execution and in the service level, have been key to rebuilding our credibility with customers and ensuring the right product is available in the right channel. In 2Q26, 4.4 million pairs were sold, an increase of 21 percent compared to 2Q25. The sell-out of the period also showed a good pace of growth in the seasonally most important quarter for the operation of this geography.”

Sales in the U.S. declined 66.9 percent to $R22.1 million from $R66.8 million y/y. The U.S. decline reflects the change in the business model in North America in January 2026 from a direct to a distributor model through a partnership with Eastman Group.

Alpargatas said,  “In United States, the transition to the new business model continues to advance at a good pace, with a relevant expansion of the sell-through, which represents sales from our distributor to retailers. Our sell-in volume decreased by 30 percent in the quarter, a reduction completely explained by the different seasonal profile brought about by the new business model, given that in 2Q25 we used to operate in the direct model in the American market. In the cumulative view of 1S26, which offers a more adequate basis for comparison, our sales volumes grew 40 percent compared to the same period of the previous year. The result of the U.S. operation in the first six months of this year interrupts a series of historic losses over many years, while surpassing previous volume records in the region, reinforcing our confidence that the new business model is leading us toward a healthier operation, with broader market reach and multiple growth opportunities.”

IDM sales inched up 1.5 percent to $R75.2 million. In markets where Alpargatas operates through distributors (IDM), in the APAC, MEA and Latin America, volume growth was resumed, with an expansion of 12 percent compared to the same period of the previous year, totaling 2.8 million pairs. Alpargatas said, “In the quarter, strong volume growth in Latin America and Asia offset the impacts of geopolitical conflicts in the Middle East seen in some geographies.”

Havaianas International EBITDA for the quarter was R$117.4 million, an increase of 105.2 percent compared to 2Q25, with a margin of 28.9 percent, representing an expansion of 14.5p.p. compared to 2Q25. This increase in margin reflects an increase in gross margin by 3.2p.p., as well a s significantly reduced expenses mainly due to the change in the business model in the U.S.

Rothy’s Q2 Sales Slip
In 2Q26, Rothy’s net sales totaled US$61 million, a reduction of 3 percent compared to 2Q25 due to a retraction in e-commerce sales volume. Alpargatas said Rothy’s e-commerce decline reflected a “strategy to reduce the channel’s dependence over discounts, which was partially offset by the performance of the company-owned stores, supported by the addition of 10 new stores over the last 12 months, as well as the opening of new wholesale doors.”

Gross margin reached 67 percent, an expansion of 6 p.p. year-over-year, benefiting from a reimbursement by the U.S. government related to tariffs imposed on products imported from China in the prior year.

As a result, quarterly EBITDA totaled US$6.5 million, which represents a reversal of the negative results registered last quarter, in which Rothy’s had been impacted by store closures “due to extreme weather conditions in the first months of the year and the United States tax on products imported from China.”

Alpargatas owns a 49.9 percent stake in Rothy’s.

Outlook
Alpargatas said, “We continue to move forward in 2026 with confidence in the defined strategy and in Alpargatas’ ability to deliver consistent and sustainable results. The evolution observed in recent quarters reinforces the soundness of the choices made and allows us to look at the coming years from a stronger, more efficient, disciplined, and better prepared position to capture the long-term growth opportunities of our business.

“In Brazil, we remain focused on sustainable expansion, preserving leadership in the food channel and continuously improving our execution in specialized channels. In the international environment, we remain attentive to the gradual recovery in volumes, the consolidation of the new business model in the United States and the brand strengthening across key geographies.

“The results achieved reinforce the resilience of our business model. The continued progress of our international operations, combined with greater geographic diversification of revenues and ongoing improvements in operational efficiency, contributes to a more consistent earnings profile over time. At the same time, the nature of our cost structure and our disciplined business management practices reduce the company’s sensitivity to short-term external fluctuations, allowing us to remain focused on executing our strategy and delivering long-term value to shareholders.

“And so, we are confident in our ability to build the next chapter of Alpargatas’ history. A chapter that proposes to appropriate the advances implemented throughout this journey, while seeking innovation and connection with consumer trends around the world. With a clear strategy, solid results and discipline in the execution and resource allocation, we will continue to prepare ourselves to capture the opportunities ahead of us, strengthening our core business and expanding, in a sustainable way, the global relevance of Havaianas.

Image courtesy Havaianas