Alpargatas reported a 9 percent increase in sales to 940 million reals (€205.9m-$229.9m) for the first quarter of 2019, with gains in all its divisions in Brazil and abroad. In particular, the management pointed to an increase of 16.1 percent in the sales of its major brand, Havaianas, which were particularly strong in the EMEA and Asia-Pacific regions.
The company's overall sales grew by 6.7 percent in Brazil and by 16.1 percent in other countries, although they were up in volume by only 3 percent and 2 percent, respectively.
The gross margin increased by 0.1 percentage points to 45.4 percent and the adjusted Ebitda margin grew by 0.2 percentage points to 14.5 percent. However, the group's consolidated net earnings declined by 61.5 percent to R$ 43.5 million (€9.5m-$10.6m).
Overall, sandals represented 70 percent of total revenues. Their sales outside Brazil delivered an improved Ebitda margin of 24.2 percent on sales of R$ 208.0 million (€45.6m-$50.9m). Thanks in part to higher selling prices and strong action on social media, Havaianas' sales at its Brazilians retail operations grew by 14 percent on a same-store basis.
The licensed Mizuno business showed an increase, thanks in part to the launch of an urban casual line, but the share of sporting goods in the total turnover of the group declined to 21 percent from 24 percent in the year-ago period. Topper and the apparel business in Argentina grew by 8 percent.
Alpargatas appointed some top new managers in the past few months including Fernanda Romano, who was placed in charge of the digital channel, and Leondro Madeiro, who will serve as the new chief executive for Osklen, the group's brand of sportswear.
The group decided to raise its equity by R$ 851.5 million (€186.5m-$208.3m) on March 20, partly through the issue of 117.6 million new shares.