Alpargatas lifts Q3 sales as Havaianas U.S. volumes jump 82%

By Marcus Bennett

Havaianas sold 1.0 million pairs in the U.S. in the third quarter of fiscal 2026, up 82% from a year earlier, as its Brazilian parent Alpargatas reported higher sales and net income Monday.

How did Alpargatas perform?

Alpargatas reported net sales of 1.24 billion Brazilian reals, up 11.1% from 1.12 billion reals, while net income reached 175.5 million reals, a 2.4% increase from 171.3 million.

Havaianas generated 1.23 billion reals, up 11.1% from 1.10 billion. Havaianas Brazil contributed 989.7 million reals, up 13.5% from 872.1 million. Havaianas International sales rose 2.3% to 235.6 million from 230.3 million.

Alpargatas said Havaianas sold 8% more pairs. In the quarter, Brazil accounted for 55 million pairs, while international operations sold 5.6 million.

Alpargatas chief executive officer Liel Miranda said: “All of our geographies are ready to keep growing and increase our participation in all of our priority markets where we operate in.”

Miranda said every geography grew. Europe rose 17% in the first nine months of 2026. He also cited U.S. growth in both sell-in and sell-through, plus recovery in the distribution market spanning Latin America, Asia and Africa.

What changed in the U.S. business?

Havaianas’ transition to a new U.S. business model continued to progress well, according to Alpargatas. U.S. sales volume reached 1.0 million pairs, up 82% from the third quarter of fiscal 2025. The nine-month total reached 2.7 million pairs, a record for the U.S. operation.

U.S. sell-through tracked sell-in, according to Alpargatas, with no reported inventory build-up across the channel. The company defines sell-through here as distributor-to-retailer sales.

Alpargatas said commercial performance and operating efficiency gains drove the segment’s first-ever positive EBITDA in a third quarter. It did not disclose the amount, leaving the new profit contribution unquantified.

Did Rothy’s growth produce profit?

Rothy’s net sales reached $50.9 million, up 12.3% from $45.3 million. Seven new owned stores and wholesale growth drove the increase.

Rothy’s ended the quarter with 40 owned stores as of Sept. 30, compared with 33 in the third quarter of fiscal 2025, showing that the sales increase came alongside a seven-store expansion.

The brand reported a $2.6 million net loss. Its net margin fell 3.5 percentage points to negative 5.1%.

Higher sales had not yet produced a reported net profit. The figures did not separate how much of the gain came from stores versus wholesale, beyond naming both as drivers.

What are the priorities for 2027?

Alpargatas has focused on developing Havaianas’ portfolio, including more men’s and kids’ styles. Miranda said: “We have been gaining market share in the grocery channel. We have been gaining volume in the specialized channel. And this is long-term work.”

The company will pursue further share gains in Brazil. Internationally, Miranda made 2027 the priority for another year of expansion and growth, aimed at making Havaianas increasingly relevant. He specifically wants the brand to grow in the European summer.

For the United States, Miranda said the brand should keep growing distribution next year, while store expansion would likely run below the pace of doubling and focus on improving revenue per existing store. He cited better execution and greater brand visibility as the levers.

These priorities focus decisions on U.S. distribution, store productivity, Brazilian grocery share and specialized-channel volume. No door, capacity, certification, lead-time or investment-cost target accompanied the commercial plan. Sourcing teams therefore cannot size production from the disclosed targets.

For 2027, the measurable test is whether Havaianas can sustain U.S. sell-through, add doors and lift revenue per store while expanding abroad. Rothy’s adds a second test: whether growth from 40 stores can reach positive net income.