Havaianas, the brand of rubber sandals owned by Alpargatas, generated the equivalent of €115.4 million in revenues in Europe, the Middle East and Africa (EMEA) last year, representing a 35 percent year-over-year increase. Results were driven by the Sparkle flip-flop line and the Beyond Core category that grew 28 percent in unit volume. The direct-to-consumer channel grew its new customer base by 50 percent in the EMEA as the geography’s constant-currency Ebitda increased 117 percent and the gross margin hit 71 percent.

The Brazilian parent said it is pleased with the progression of Havaianas. The label, which sold 31 million pairs outside of Brazil last year, has expanded its product portfolio by more than 30 percent over the last three years, with sandals, flats, sneakers, accessories, and apparel growing more than 200 percent over the period.

Last year, Alpargatas invested the equivalent of €100.6 million in boosting Havaianas’ production volume capacity. Nonetheless, like others in the global footwear industry, it faced raw material price inflation and logistics bottlenecks in 2021. These issues continue to be challenging for the company. To date, mitigation has involved a price per pair increase via a revenue growth management (RGM) program, the implementation of cost reduction programs, and tight controls on operating expenses.

The company’s annual net profitability rose by more than 445 percent in 2021 to 692.6 million Brazilian reais (€116. 2m) as the topline increased nearly 26 percent to R$3,949 million (€662.2m). The company’s fiscal year operating margin rose to 15.7 percent from 9.4 percent in 2020, but gross margin slipped to 49.6 percent from 51.3 percent.

In a new development, Alpargatas has filed a secondary offering of 37.5 million new common shares and 57.5 million preferred shares to help pay for its December acquisition of 49.9 percent of Rothy’s, a 10-year-old brand that manufactures apparel and footwear from recycled products. Based on Alpargatas closing price on Feb. 11, the offering could reportedly raise more than €80.4 million and will be priced on Feb. 22. Itausa SA and Grupo MS, Alpargatas’ controlling shareholders, will participate in the offering being managed by Itaus BBA, Bank of America, JP Morgan, Bradesco BBI and Citigroup Brasil.

Rothy’s, founded by Stephen Hawthornthwaite and Roth Martin with a mission to transform eco-friendly materials into wardrobe staples, will shortly open its ninth U.S. retail location in Atlanta. Current brand boutiques are in Boston, Chicago, Los Angeles, New York City, San Francisco and Washington, D.C. Since its inception, Rothy’s says it has transformed over 100 million plastic water bottles ad 275,000 pounds of ocean-bound marine plastic into footwear, accessories, and bags.