In 2012, Alpargatas sold 9,501,000 pairs of athletic shoes in Brazil under the Topper, Rainha, Mizuno and Timberland brands, or 11.8 percent more than in the prior year, with year-on-year growth of 25.2 percent in the fourth quarter. On the other hand, Alpargatas sales of athletic shoes in Argentina fell by 22.2 percent to 6,665,000 pairs because of the poor economic situation in the country, and they were off by 23.1 percent in the last quarter. In terms of value, the company's total sales of Mizuno products jumped by 42 percent, partly due to an expanded range of products and its introduction of the brand in Argentina. Topper had a sales increase of 10 percent in Brazil.
Building on Mizuno's strength in running in Brazil, Alpargatas introduced the company's volleyball products and its cleated football boots in the market last year. It adjusted Timberland's footwear lines to better adapt them to the preferences of Brazilian consumers. The company also extended the product ranges under its own Rainha and Topper labels, launching them in the running category and adding a line of casual Rainha shoes.
Excluding the related retail operations, sporting goods represented 32 percent of Alpargatas' Brazilian turnover in the fourth quarter of 2012, up from 27 percent in the same period a year earlier.
Alpargatas, which also owns the Havaianas and Dupé brands of sandals, consolidated its position as Brazil's largest footwear company in terms of value in 2012. Its consolidated net revenues grew by 16.8 percent to R$3,007.0 million (€1,158.8m-$1,495.5m), with an even higher 18.9 percent rate of increase in the fourth quarter. Volumes rose by 6.3 percent over the year. Average selling prices continued to go up.
The gross margin declined by 2.5 percentage points to 42.3 percent, but the drop was less sharp in the fourth quarter. The consolidated operating margin before amortization (Ebitda), went down by 1.9 percentage points to 13.8 percent for the year, but improved by 3.1 percentage points to 15.5 percent in the quarter. For the full year, the net profit was off by 8.9 percent to R$280.0 (€107.9m-$139.3m), but it was up 12.8 percent to R$66.3 million (€25.6m-$33.0m) for the quarter.
Last March 4, the group finalized the purchase of a 30 percent interest in Osklen, a surf-inspired brand of high-end apparel and accessories, and it will have the option of buying another 30 percent interest in the first half of 2014. Osklen has 64 stores in Brazil and six abroad, and this has raised the group's retail network to a total of 518 exclusive stores (more on this company in Shoe Intelligence).
