Alpargatas, the parent company of Havaianas and Osklen, reported revenues from continuing operations of 1,095 million Brazilian reais (€177.8m-$209.2m) in the second quarter, up by 71.4 percent on the year earlier and 46 percent higher than the second quarter of 2019, led by growth in international markets, the continued expansion of its online business and product innovations. The company transferred the Brazilian license for Mizuno to Vulcabras last summer.

The gross margin expanded in the quarter by 0.3 percentage points compared to the year earlier to 55.9 percent, although the gross margin in Brazil narrowed by 1.8 percentage points to 40.4 percent, a level Alpargatas described as “healthy” despite the impact on costs from high raw material prices due to a high turnover of inventories in the country. The gross margin for the international business expanded by four percentage points to 73.2 percent, driven by an improved country mix, revenue growth management (RGM) initiatives, mainly in the EMEA region, and a positive effect from the average cost of inventories and exchange rates.

Ebitda jumped by 55.9 percent to R$221.6 million (€36.0m-$42.3m), while net income from continuing operations surged to R$111.4 million (€18.1m-$21.3m) from R$33.9 million.

Alpargatas’ sales in Brazil increased by 79.2 percent to R$578.9 million (€94.0m-$110.6m), with Havaianas rising by 72.0 percent to R$520.0 million (€84.4m-$99.2m) and Osklen going up by 234.0 percent to R$54.1 million (€8.8m-$10.3m).

The Havaianas brand’s sales outside Brazil grew by 63.4 percent at constant currency rates to R$516.4 million (€83.8m-$98.5m). Its sales in Europe climbed by 40.7 percent to $R320.4 million (€52.0m-$61.1m) while in the U.S. they rose by 48.3 percent to R$69.8 million (€11.3m-$1.3m) and in China they were 60.6 percent higher at R$17.1 million (€2.8m-$3.3m).

Alpargatas’ online sales increased by 7 percent as compared to the second quarter of 2020 to R$220 million (€35.7m-$42.0m) and were triple their level in the second quarter of 2019. They accounted for about 20 percent of Havaianas’ sales and 40 percent of Osklen’s revenues in the second quarter.

Alpargatas counted 841 stores at the end of the quarter, compared with 784 a year earlier. In Brazil, it increased the number of Havaianas franchises to 486 from 444 and the number of own stores to six from five. The number of Osklen franchises rose to 26 from 22 while the number of own stores fell to 47 from 57. Havaianas’ international business saw franchises increase to 240 from 189 while own stores decreased to 47 from 57.