Alpargatas, the Brazilian-based parent company of Havaianas, has pulled off a very strong quarter, lifted by both domestic and international sales. Its net income rocketed by 73.0 percent to 31.6 million reais (€7.0m-$7.8m) for the second quarter of 2019. The management said this expansion reflects efforts to widen the focus to branding, consumers and the global expansion of Havaianas.

The group's revenues progressed by 11.6 percent from the year-ago quarter to R$993.4 million (€220.0m-$243.8m), driven by double-digit growth in all businesses in Brazil – namely Havaianas Brazil, the Mizuno license and Osklen. In particular, same-store sales for the Havaianas and Osklen brands grew by 17 and 21 percent, respectively.

Outside Brazil, a 14.4 percent increase in Havaianas' international operations was driven by a particularly strong performance in the EMEA region. Earlier this year, Havaianas started operating directly in Greece, expanding distribution and visibility. In the U.S., the brand is growing in key accounts such as Amazon and Nordstrom, while in Asia-Pacific the growth was driven by Australia and the Philippines. In China, the brand opened a local subsidiary and started to sell online on Tmall. In Latin America, Columbia stood out.

Among other brands, the licensed Mizuno business showed an increase of 12.6 percent, thanks to a broader range of products and better positioning in the regional sales channels. Mizuno's new e-commerce platform and its outlets also performed well.

The company's overall sales grew by 16.6 percent in Brazil and by 14.4 percent in the Sandals International business. However, this excludes Argentina, where sales declined by 8.1 percent due to the country's troubles with hyper-inflation.

In Brazil, the gross margin declined by 0.8 percentage points to 41.6 percent, while the Ebitda margin gained 1.3 percentage points to 6.5 percent.

The Sandals International segment recorded an Ebitda margin of 23.5 percent, up by 5.8 percentage points, while its gross margin lost 1.1 percentage points to 69.6 percent.

Overall, Alpargatas' gross margin declined by 1.2 percentage points to 45.7 percent, mainly through the impact of hyper-inflation in Argentina and the increased share of the wholesale channel in EMEA. In Brazil, there was pressure on the cost of rubber as compared to the year-ago quarter, which was partially offset by a richer mix of products and channels. The adjusted Ebitda margin grew by 2.7 percentage points to 9.9 percent across the group.

Alpargatas has appointed some new top managers in the past few months, including Jacod Uhland, who, with his 22 years of experience at VF Corporation, was placed in charge of the North America and the Caribbean region.