Alpargatas revenue slides as sales fall globally
Net global sales of Brazilian group Alpargatas fell 3.3% in the third quarter. The owner of flip flop brand Havaianas said revenue reached 951.1m reais ($286m, 242.3m euros), as its performance weakened both in Brazil and abroad.
In Brazil, net revenues fell by 1.1% to 670m reais ($201m, 170.8m euros) compared with the third quarter of 2016, but the biggest fall was recorded in Argentina, where the brand saw revenues drop 11.3% to 172.2 million reais ($51.6m, 43.8m euros).
Meanwhile the Sandals International division, which is responsible for the brand’s international business (excluding Argentina), reported sales of 108.4m reais ($32m, 27.6m euros) for the three months between July and September, down 1.8% on the same period last year.
The results reveal the brand performed better in Brazil than in its international markets, repeating 2016’s trend when Alpargatas reported weak international sales and double-digit growth in Brazil.
The group, which announced its financial results this week, attributed the decline in sales in Argentina to the growing competition from global brands, which impacted Topper’s sales in the market.
In Brazil, Mizuno and Osklen sales increased during the third quarter, but the rise couldn’t offset the poor performance of its sandals division. However, the group said its gross margin grew in its domestic market as a result of increased Mizuno profitability and Havaianas’ cost cutting plan.
Alpargatas’ international division reported lower volumes and a decrease in revenue in both dollar and euros.
EBITDA also fell 14.9% in the third quarter, and consolidated net income totalled 71.3m reais ($21m, 18m euros), down 15% on the previous year.
Net revenues for the nine months of 2017 reached 2.61bn reais ($786m, 667.2m euros), falling 12.4% compared with the same period in 2016.
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