Despite the economic impact of the coronavirus pandemic, Alpargatas, the parent company of Havaianas and Osklen, managed to grow its revenues abroad in the second quarter. Overall sales declined by 19.6 percent to 680.5 million Brazilian reais (€108.6m-$128.6m), while the gross margin expanded by 2.1 percentage points to 53.0 percent. The Ebitda margin jumped by 7.2 percentage points to 19.4 percent, lifted by the positive result of a lawsuit against the Brazilian tax department. Net income soared by 43.2 percent to R$ 44.5 million (€78.2m-$8.4).
Even though sales went down by 35.4 percent in Brazil, those of the company’s Sandals International business jumped by 11.7 percent to R$ 316.0 million (€50.4m-$59.7m).
International sales accounted for 46 percent of Alpargatas’ total revenues, compared with 33 percent in the year-ago quarter, driven by EMEIA (Europe, Middle East, Africa and India), the U.S., China and an improved performance from the supply chain.
Sales abroad soared after easing lockdown restrictions by 61 percent in May and 57 percent in June, boosted by e-commerce. Sales in EMEIA advanced by 16 percent, including a jump of 143 percent in online sales. Havaianas.com sales rocketed by a staggering 593 percent in the region.
Elsewhere, revenues in North America and the Caribbean increased by 28 percent, and in China, they climbed by 69 percent.
Even though domestic sales were down overall, Havaianas Brazil performed well in June, driven by fast replenishment of products in the convenience and food channel.
Globally, the Havaianas online channel sales increased by 205 percent. Online sales for the licensed Mizuno brand increased by 80 percent, and Osklen.com sales rose by 148 percent.
During the quarter, Havaianas successfully launched the 2021 collection, which includes new flip-flop shapes and technologies as well as sandals, clothing and accessories portfolio expansion. The St Tropez family line was also a highlight. In addition, Havaianas partnered with Mastermind Japan to launch products in limited editions, inspired by streetwear.
The company has not released any guidance for the full year.