At Alpargatas, Q2 Ebitda for the Havaianas parent rose by 203 percent year-over-year to 174.7 million Brazilian reais (€27.6m) as net sales increased by 8.3 percent to BRL$1,101.4 million (€174.0m) from BRL 1,016.5 million. Adjusted Ebitda improved by 177 percent to BRL$192.6 million (€30.4m). Gross margin jumped by 760 basis points to 54.7 percent.
The Brazilian footwear group sold 49 million pairs during the period ended June 30, representing a 6 percent year-over-year decrease. The decline in sell-in volume was prompted by a pull-forward strategy in Q1 designed to avoid a historical market contraction in Q2, the company said.
In Europe, unit volume increased by 6 percent to 3.6 million pairs during the period, as year-over-year revenues rose by 18 percent to BRL$255.8 million (€40.4m). Alpargatas continues to see improvements in the region’s business, which it partly attributed to logistical enhancements made since last year. Additionally, the company believes its resumed marketing efforts via targeted campaigns and brand collaboration have helped to re-ignite consumer interest in the brand.
At Rothy’s, Q2 sales rose by 7 percent to BRL$63.0 million (€10.0m) as Ebitda improved by 15 percent to BRL$7.9 million (€1.2m). Net income remained relatively stable at BRL$5.9 million (€930k), despite the negative impact from tariffs. Manufacturing efficiency gains and lower freight and distribution costs were offset by higher tariffs on products from China, which shaved 200 basis points off the gross margin’s 320-basis-point drop to 61.3 percent.
Grendene posts 66 percent improvement in Q2 Ebitda
Unit volume rose by 1.2 percent to 27.0 million pairs, with the domestic Brazilian market up by 2.0 percent to 22.9 million pairs, as all exports fell by 3.2 percent to 4.1 million pairs.
Q2 Ebit at Grendene increased by 104 percent to BRL$45.3 million (€7.2m) as total revenues grew by nearly 16 percent to BRL$555.3 million (€87.7m) from BRL$480.3 million. Domestic sales jumped by 13.0 percent year-over-year to BRL$572.5 million (€90.4m), and exports were 88.0 percent higher at BRL$183.7 million (€29.0m). Net income came in at BRL$143.6 million (€22.7m) versus BRL$41.6 million in the year-ago period. Gross margin contracted by 60 basis points to 42.0 percent.
The Brazilian group said Q2 “continued to reflect the challenging environment that has persisted since 2024,” which has been fueled by a combination of domestic pressures, volatility in international markets and ongoing geopolitical tensions. Grendene said it was closely monitoring negotiations between Brazil and the US aimed at preventing the implementation of a 50 percent tariff on Brazilian products starting on Aug. 6. That tariff did in fact take effect on Aug. 6 and is at press time the current rate.
