Alpargatas generated 5.4 percent (+21% currency neutral) sales growth to 132.0 million Brazilian reais (€32.5m) for its rubber sandal brand in the EMEA during the third quarter. Revenue per pair increased 4 percent in constant currency. Overall, Havaianas’ sales fell in all other geographic regions, although they increased by 36.5 percent to distributors at R$80.1 million (€16.0m) and were 12.3 percent higher in the home market at R$833.7 million (€166.0m). In the U.S., a 62-percent decline in unit volume resulted in a 41-percent drop in year-over-year revenue to R$23.8 million (€4.7m) with the lower volume and higher unit price related to Amazon’s channel mix strategy. The sandal brand’s quarterly sales in China fell 24.4 percent to R$7.2 million (€1.4m) with the decline caused by pandemic restrictions in the market.
Overall, the group’s quarterly consolidated net income was R$44.9 million (€8.9m) for the period ended Sept. 30. Operating income slipped 59 percent to R$74.6 million (€14.9m) against R$181.6 million in the year-ago period. Total revenues rose by 10.3 percent to R$1.09 billion (€219.0m) on a reported basis as the operating margin slipped to 12.8 percent from 15.4 percent. Consolidated gross margin declined to 47.4 percent from 48.2 percent on currency headwinds, higher raw material costs and industrial expenses, and geographical mix. Period end inventories were up 13.1 percent year-over-year at R$1.43 billion (€286.7m).
As for Rothy’s, the native American digital brand that the group acquired a 49.9 percent equity stake in Dec. 2021, third-quarter sales rose 2 percent to $38 million for nine-month growth of 34 percent to $129 million. Investments in marketing and retail store operation equaled $18 million, resulting in negative $11 million in Ebitda for the brand in the period. The brand has experienced 30 percent same-store sales growth over nine months from the 15 stores it currently operates. Rothy’s, which participated in a collaboration with Evian during the U.S. Open, has hired a new chief marketing officer, Jamie Gersch, and a new chief merchant, Heather Archibald.
