TCF POST Report
SÃO PAULO — Alpargatas delivered a sharply stronger second quarter of 2026, with growth led by its core Havaianas brand and supported by a broad recovery across Brazil and key international markets. The company’s results point to improving operational efficiency, stronger margins and renewed momentum outside its home market.
Alpargatas’ adjusted EBITDA jumped 48.5% year on year to R$286 million in 2Q26, while the adjusted EBITDA margin expanded to 23.3% from 17.5% a year earlier. Net income nearly doubled, rising 95.1% to R$169.7 million, while consolidated net sales increased 11.3% to R$1.23 billion. Gross profit climbed 14.6% to R$690.8 million, the company’s highest quarterly gross profit on record.
Havaianas remains the growth engine
Havaianas was overwhelmingly the company’s strongest-performing brand and accounted for almost all of Alpargatas’ operating earnings. Brand EBITDA rose 44.9% to R$283.1 million, with its margin expanding 5.4 percentage points to 23.3%. For the first half, Havaianas EBITDA reached R$582.7 million, up 44.9%.
The brand sold 53.3 million pairs globally during the quarter, up 9%, comprising 45.6 million pairs in Brazil and 7.7 million internationally. Havaianas’ consolidated net sales increased 11.4% to R$1.215 billion.
Brazil was the standout domestic market. Havaianas Brazil sold 45.6 million pairs, up 8.6%, while sell-out increased 13%. Its food-channel market share reached 79.7%, gaining 2.1 percentage points year on year. Net sales surged 16.7% to R$809.2 million, helped by a stronger product and channel mix. EBITDA rose 19.9% to R$165.7 million, with the margin reaching 20.5%.
The Brazilian operation also recorded a 22.2% increase in gross profit to R$387.2 million, while gross margin reached 47.9%, up 2.2 percentage points. For the first half, Brazil net sales rose 14.8% and EBITDA increased 29.2%.
Europe emerges as the international star
Internationally, Europe was the clear growth leader. Havaianas sold 4.4 million pairs in the region, up 20.9%, marking the third consecutive quarter of positive sales momentum. European net sales increased 20.6% to R$308.5 million.
The improvement in Europe was particularly important for international profitability. Havaianas International generated R$295.6 million in gross profit, up 7.1%, while gross margin climbed to 72.8%. International EBITDA more than doubled to R$117.4 million, a 105.2% increase, with the margin expanding to 28.9% from 14.4%.
The company attributed the performance to improved commercial execution, better service levels and greater scale in Europe, which also helped reduce cost per pair. International COGS per pair fell 18.3% year on year.
U.S. transition masks underlying recovery
The United States presented a more complicated picture because of Havaianas’ transition from a direct model to a distributor-based model. Quarterly sell-in volume fell 30%, while net sales plunged 66.9% to R$22.1 million. However, management said the decline reflected the changed seasonal profile rather than deterioration in underlying demand.
The first-half comparison provides a more positive picture: U.S. volume was 40.2% higher than in 1H25, reaching 1.8 million pairs. The company said the U.S. operation also ended a long period of historical losses and exceeded previous volume records, suggesting the new model is beginning to create a healthier platform for expansion.
Asia and Latin America support distributor markets
Havaianas’ distributor markets across APAC, MEA and Latin America also returned to volume growth. The group sold 2.8 million pairs in these markets during 2Q26, up 12.1% year on year.
Latin America and Asia were the main contributors, more than offsetting the effects of geopolitical conflicts in parts of the Middle East. However, first-half IDM volume remained 2.3% below the previous year, showing that the quarterly recovery has not yet fully translated into a sustained half-year improvement.
Rothy’s improves margins but remains under pressure
Alpargatas’ other significant brand, Rothy’s, delivered a mixed quarter. Net sales declined 2.9% to US$61.2 million, primarily because online sales contracted as the brand reduced its reliance on discounting. The decline was partly offset by company-owned stores and new wholesale doors.
Rothy’s gross profit nevertheless increased 6% to US$41 million, with gross margin expanding 5.7 percentage points to 67%. The improvement benefited from a U.S. government reimbursement related to tariffs on products imported from China and a higher share of full-price sales.
The brand’s store network expanded to 39 locations from 29 a year earlier, while recurring customers accounted for 54.2% of sales, up from 43.7%. However, higher store and personnel expenses pushed EBITDA down 17% to US$6.5 million, and net income fell 51.5% to US$2.9 million.
A more balanced global growth profile
The 2Q26 results show Alpargatas becoming increasingly dependent on the combination of Havaianas’ domestic strength and improving international profitability. Brazil remains the volume and revenue anchor, but Europe has become the most important international growth engine, while Asia and Latin America are helping restore momentum in distributor markets.
The company’s overall profitability improvement is particularly notable. Adjusted EBITDA increased 48.5% despite operating expenses falling 2.9%, while net income rose 95.1%. For the first half, adjusted EBITDA reached R$585.5 million, up 46.9%, and net income rose 66.8% to R$332.5 million.
For Alpargatas, the key challenge now is converting the strong Brazilian performance and European recovery into a more consistent global growth trajectory. The U.S. distributor transition, continued expansion in Asia and Latin America, and the rebuilding of Rothy’s digital and store businesses will determine whether the company can sustain the sharp improvement seen in the first half of 2026.
