Havaianas Maker Refocuses on Core Products Under New Leadership

Alpargatas, the company behind Havaianas, has undergone significant changes to stabilize its business. Under new CEO Liel Miranda, who joined in February 2024, the firm has cut costs and trimmed its product portfolio.

Miranda acknowledges that work remains, stating, “Alpargatas is no longer in crisis, but the turnaround is not complete.”

The second quarter results of 2024 showed promising signs, with sales growth, improved margins, and decreased financial leverage.

Despite these improvements, investors remain cautious. Alpargatas’ stock price has been trading at its lowest levels of the year, indicating market hesitation about the company’s recovery.

The company has slashed its investment from R$500 million in 2023 to R$180 million in 2024. It has also cut 50% off Havaianas products and reduced its workforce by 30%.

Logistical operations have been addressed, reducing delivery delays and customer service issues. Miranda plans to refocus on Havaianas’ core product: rubber flip-flops.

Alpargatas’ International Strategy and Market Outlook

The company is also reevaluating its international strategy, focusing on 15 key markets, including southern Europe, England, southern Asia, and the United States.

Analysts believe Alpargatas was slow to react to its crisis. Ana Paula Tozzi, president of AGR Consultores, suggests the company expanded its portfolio too quickly without consolidating new products.

Online sales for Havaianas have been challenging due to easy product substitution. Despite challenges, Havaianas remains dominant in Brazil, with 95% household penetration and a 75% market share in food retail.

Alpargatas’ future success depends on growing international sales, where margins are higher, and continuing to reduce production costs. The company must also address the lingering effects of its restructuring efforts.

As Alpargatas moves forward under Miranda’s leadership, the market remains cautiously optimistic. Investors recognize the brand’s potential and operational improvements but are eager to see the company unlock its full value in the coming months and years.

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