Havaianas Parent Alpargatas Set Sales Record in 2021 – Business of Fashion

The Brazilian flip-flop maker says it sold 260 million pairs of shoes last year, achieving global sales of $744.9 million, a result it attributed to the success of an aggressive international expansion strategy.

With a gross margin of 50 percent, Alpargatas posted EBITDA (earnings before interest, taxes, depreciation and amortisation) of $137.6 million. Overseas sales accounted for 32 percent of turnover, up five percentage points since 2018.

In 2021, Havaianas’s alone sold 31 million pairs of shoes outside Brazil, an increase of 57 percent in revenue terms.

“The numbers are the result of a long-term strategy,” chief executive Beto Funari said.

Funari said the 114-year-old company expanded its flip-flop range by more than 30 per cent during the past three years and doubled its portfolio of sandals, flats, sneakers, accessories and apparel.

In December, Alpargatas announced it would acquire a 49.99-percent-stake in San Francisco-based, sustainability-driven shoe brand Rothy’s, a business Funari said would help boost the Brazilian company’s presence in international markets, as well as in high-growth footwear categories and in the direct-to-consumer channel.

Alpargatas last week announced a new share offer to fund the Rothy’s purchase. Based on the closing price of its shares the issue could raise about $482 million, however the offer won’t be priced until Feb. 22.

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Alpargatas Buys 49.9% Stake in Rothy’s

The Brazilian owner of flip-flop sandal maker Havaianas, has reached an agreement to buy as much as 49.9 percent of US direct-to-consumer footwear brand Rothy’s Inc.