# Alpargatas profit jumps to R$197 million in 4Q25 as Havaianas margins rebound

*Brazilian footwear group posts sharp earnings recovery as domestic profitability and international turnaround drive strongest annual results on record.*

- Published: 2026-03-05
- Updated: 2026-03-06
- Section: Insights
- Tags: Alpargatas, Alpargatas earnings, B3 companies, Brazil consumer stocks, Brazilian companies, corporate earnings, footwear industry, Havaianas, Latin America consumer sector, retail Brazil
- URL: https://brazilstockguide.com/insights/alpargatas-profit-jumps-to-r197-million-in-4q25-as-havaianas-margins-rebound/

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**By Brazil Stock Guide** – Alpargatas reported a sharp rebound in profitability in the fourth quarter of 2025, posting **net income of R$197 million**, compared with just **R$2 million** in the same period a year earlier, as margins recovered and the Havaianas business regained momentum both in Brazil and abroad. The footwear group closed the year with **net income of R$567.9 million**, the highest in its history.

Revenue in the quarter reached **R$1.26 billion**, up **11.8% year over year**, supported by stronger international sales and a better product mix in Brazil. Gross profit nearly doubled to **R$633 million**, while **adjusted EBITDA climbed to R$211 million**, more than five times higher than a year earlier. Gross margin rose to **50.4%**, from **33.3%** in the fourth quarter of 2024, reflecting improved operational efficiency and the normalization of inventory effects that weighed on the previous year’s comparison.

**Domestic engine**

Brazil remained the core driver of the turnaround. The company sold **60.8 million pairs** of Havaianas in the domestic market during the quarter, slightly below the prior year, but stronger pricing and channel mix helped push revenue higher. For the full year, Brazilian revenue reached **R$3.4 billion**, up **10%**, with **EBITDA of R$824.7 million** and a margin of about **24%**.

Management attributed the performance to disciplined pricing, stronger product mix and gains in manufacturing and logistics efficiency. Consumer demand also strengthened: sell-out — the sell-through at retail — rose **8% in the quarter**, suggesting improving demand even as the company kept sell-in volumes controlled to avoid excess inventory.

Margins reflected that improvement. Brazil’s gross margin reached **50.9% in the quarter**, the highest ever recorded by the company in a single quarter.

A marketing campaign also placed the brand at the center of political debate. The **Havaianas year-end campaign for 2025/2026 featuring actress Fernanda Torres** triggered strong backlash from some conservative consumers and right-wing politicians.

In the video, Torres suggests that people should not begin 2026 “with the right foot,” as the expression goes in Portuguese, but rather “with both feet,” a phrase that critics interpreted as a political message and that sparked calls for boycotts on social media.

**International rebound**

The international operation, which had weighed on results in recent years, also began to show signs of recovery. Sales abroad rose **45% year over year in the quarter**, reaching **R$184 million**, with stronger performance across Europe and distributor markets. International volumes increased **82%**, totaling **5.7 million pairs**.

The United States posted the strongest growth, with volumes up more than **300%**, largely reflecting the initial inventory build linked to a new distribution partnership with Eastman that is scheduled to start operating in 2026.

Although the international division still reported a quarterly EBITDA loss of **R$42 million**, the annual result turned positive at **R$42.1 million**, marking the first profitable year for the segment since 2022.

**Margins and capital discipline**

For the full year, Alpargatas delivered **revenue of R$4.56 billion**, an increase of **11%**, while **adjusted EBITDA reached R$865 million**, more than doubling from 2024. Gross profit rose **34%**, reflecting operational improvements and the absence of inventory write-downs that distorted the prior year comparison.

The company also returned **more than R$1.2 billion to shareholders** through dividends and capital reductions during 2025. After the payout, leverage remained moderate at roughly **0.8x net debt to EBITDA**, suggesting a still conservative capital structure.

Management says the company is entering a new corporate cycle following several years of restructuring — combining stronger profitability in Brazil with the early signs of a renewed international expansion for the Havaianas brand.

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Source: Brazil Stock Guide, https://brazilstockguide.com/insights/alpargatas-profit-jumps-to-r197-million-in-4q25-as-havaianas-margins-rebound/