Alpargatas reported a net revenue decline of 11% in fiscal year 2023 to 3.73 billion Brazilian reais (696.9 million euros), on a comparable basis to the previous fiscal year, mainly due to lower volumes in both Brazil and international markets. In the fourth quarter alone, the company’s net revenue totalled 1.0 billion US dollars (186.9 million euros), down by 8.5% year-over-year.

Havaianas’ net revenue amounted to 3.68 billion Brazilian reais (687.5 million euros) last year, reflecting a decrease of 10.5%, as compared to 2022. This comprises a net revenue decline of 6.8% year-over-year to 2.72 billion Brazilian reais (508.2 million euros) in the domestic market and a 19.4% decline year-over-year to 973.6 million Brazilian reais (181.9 million euros) in international markets, including volume decreases of 13.4% and 30.4%, respectively.

In the fourth quarter of 2023, the flip-flop brand’s net revenue reached 991.8 million Brazilian reais (185.2 million euros), down by 8.7% from the same quarter of the prior year. At home, its net revenue fell by 0.2% year-over-year to 895.2 million Brazilian reais (167.2 million euros), it dropped by 48.9% in international markets to 96.6 million Brazilian reais (18.0 million euros), including volume decreases of 2.9% and 47.8%, respectively.

Meanwhile, Rothy’s full year net revenue totalled 180.3 million Brazilian reais (33.4 million euros), reflecting a decrease of 1.4%, as compared to 2022, even though its fourth quarter revenue rose by 20.8% year-over-year to 65.1 million Brazilian reais (12.2 million euros).

In 2023, Alpargatas’ gross profit amounted to 1.5 billion Brazilian reais (280.2 million euros), down by 22% from the previous year, and its gross margin contracted to 40.1% from 46.1%.

The parent company of Alpargatas and Rothy’s also reported a consolidated net loss of 1.9 billion Brazilian reais (355.0 million euros) last year, as compared to a net profit of 108.5 million Brazilian reais (20.3 million euros) in 2022.

Going forward, “we will be a company more focused on our iconic product, so well recognized by our consumers. We will leverage the strength of our Havaianas brand in our main markets. Internationally, we will be more focused and consistent in priority countries”, says the management team in a statement.

“Our operational processes are becoming more efficient, and our organizational structure is becoming leaner. With cost management and capital allocation discipline, we are convinced that this is the path we will take to resume sustainable growth with profitability and value creation for our shareholders”, it concludes.