Alpargatas Q3 Sales Rise 11% as Havaianas Grows in Brazil and the U.S.

Alpargatas’ latest results contain two distinct growth stories, and they’re advancing at different speeds. Havaianas sold more pairs across its markets, with Brazil doing most of the work, while Rothy’s grew through new stores and wholesale sales. For the third quarter of fiscal 2026, Alpargatas reported net sales of 1.24 billion Brazilian reals, up 11.1 percent from 1.12 billion reals a year earlier. Net income rose more slowly, increasing 2.4 percent to 175.5 million reals.

That gap between sales and earnings gives the headline growth some needed context. Higher revenue shows that both brands are finding ways to sell more, but it doesn’t tell us on its own how efficiently they’re doing it. Havaianas’ U.S. operation reached positive third-quarter EBITDA, while Rothy’s remained loss-making. Two brands, two very different operating questions.

Havaianas growth is strongest at home

Havaianas generated 1.23 billion reals in sales, an 11.1 percent increase from 1.10 billion reals in the prior-year quarter. Brazil contributed 989.7 million reals, up 13.5 percent, while international sales rose 2.3 percent to 235.6 million reals. The split is telling: the brand is growing beyond Brazil, but its home market remains the clear anchor of its business.

Volume helps explain the increase. Havaianas sold 8 percent more pairs overall, including 55 million in Brazil and 5.6 million through its international operations. That points to wider demand for the product, though the figures don’t show how much of the sales increase came from pricing or changes in the mix of products sold. The broader takeaway is more straightforward: Brazil provided the bulk of the momentum, while overseas markets added a smaller gain.

The concentration matters because international growth is a stated priority, not yet the main source of quarterly sales. A strong domestic business gives Alpargatas a large base to build from, but it also means that progress in other markets will take time to become as visible in the overall results. Growth across geographies is encouraging. Its scale still varies considerably.

The U.S. operation shows signs of progress

In the United States, Havaianas sold 1 million pairs during the quarter, 82 percent more than in the same period last year. The nine-month total reached 2.7 million pairs, a record for the U.S. operation over that span. Alpargatas said its transition to a new business model is progressing well, though the company hasn’t provided enough detail here to judge the full scope of that change.

One useful signal is the relationship between distributor sales and retailer sales. U.S. sell-through—sales from the distributor to retailers—tracked sell-in, according to Alpargatas, which said there was no channel inventory build-up. That alignment suggests the reported sales weren’t simply pushed into the channel faster than retailers could move them. It’s a more meaningful measure of demand quality than a shipment increase on its own.

Better commercial performance and operating efficiency also brought the U.S. segment its first positive third-quarter EBITDA. This is more significant than it looks: the milestone suggests that higher volume is beginning to arrive alongside better operating results, rather than sales growth standing alone. It doesn’t establish that profitability will continue, but it gives the company a practical benchmark for evaluating the next phase of the business.

Rothy’s adds stores as losses persist

Rothy’s net sales reached $50.9 million, up 12.3 percent from $45.3 million a year earlier. Alpargatas attributed the increase to seven new owned stores during the quarter and wholesale growth. As of Sept. 30, Rothy’s operated 40 owned stores, compared with 33 in the third quarter of fiscal 2025. The expansion gives the brand more places to reach customers, while wholesale growth extends its reach through retail partners.

But the sales increase came with a continuing earnings gap. Rothy’s recorded a $2.6 million net loss, with a negative net margin of 5.1 percent, down 3.5 percentage points year over year. Store openings can support future sales, but they also add costs; the quarterly figures don’t break out how much each factor contributed to the result. The numbers here are underwhelming on profitability, even as the top line grows.

That tension is familiar in retail expansion: adding locations can make a brand more accessible, yet the value of each new store depends on whether it attracts enough business to justify its costs. Rothy’s current results don’t settle that question. They show that sales are rising and the store base is larger, while losses remain part of the financial picture.

International expansion is the next test

On the earnings call, chief executive Liel Miranda said Alpargatas sees room to keep growing and increase its presence in priority markets. He pointed to growth across international geographies, including a 17 percent increase in Europe over the first nine months of 2026 and a recovery in distribution markets spanning Latin America, Asia and Africa. Those results indicate that the opportunity isn’t limited to the United States, though the company’s international sales remain smaller than its Brazilian business.

Alpargatas is also broadening Havaianas’ men’s and kids’ ranges. In Brazil, Miranda said the brand has gained share in grocery and increased volume in specialty retail, describing this as long-term work. The strategy appears to pair wider product choices with more points of sale, giving the brand additional ways to reach shoppers. If you’re working in this space, the distinction matters: a strong quarter can come from demand for existing products, while sustained expansion depends on whether a brand can keep finding customers in new channels and categories.

For 2027, the company’s international priority is another year of expansion, with a greater focus on making Havaianas more relevant in each market. That includes building the brand’s presence during the European summer and expanding U.S. distribution. Miranda cautioned that U.S. store growth probably won’t repeat the pace of doubling; he pointed instead to more retail doors, stronger execution and higher revenue per store.

That said, expansion targets are only useful if they lead to durable sales and operating gains. Alpargatas’ results offer some encouraging signals: more Havaianas pairs sold, U.S. sell-through tracking sell-in and a first positive third-quarter EBITDA for that segment. Rothy’s is adding stores and growing wholesale, but its loss shows the cost side still matters. And this is the part most people overlook: distribution can build access, but access alone doesn’t prove that customers will keep buying.

What the results leave to prove

The next measure to watch is whether higher pair volume and wider distribution can keep translating into sales without eroding operating gains. For Havaianas, that means seeing international growth develop alongside its strong Brazilian base and keeping the U.S. business’s early operating progress intact. For Rothy’s, it means showing that store and wholesale expansion can support a healthier financial result over time.

For now, Alpargatas has a clear source of strength in Havaianas and a growth effort at Rothy’s that still carries visible costs. The company’s next challenge is execution. More pairs and more stores are useful signs; the harder question is what they earn.