All participants' microphones will be disabled. Afterward, we will begin the question and answer session. To ask a question, click the Q&A icon at the bottom of your screen and type in your question to join the queue. Once your name is announced, a prompt to activate your microphone will appear on the screen, and you should then activate it in order to ask your question. We advise you that all questions be asked at once. We would like to point out that the information contained in this presentation and any statements that may be made during this webcast regarding Alpargatas' business outlook, projections, and operating and financial targets constitute beliefs, assumptions, and of the company's management, as well as information currently available. Forward-looking statements are not guarantees of a performance. They involve risks, uncertainties, and assumptions as they relate to future events, and therefore, depend on circumstances that may or may not occur. Investors should understand that general economic conditions, market conditions, and other operating factors may affect Alpargatas' future performance and lead to results that may differ materially from those expressed in such forward-looking statements. Joining us today are the company's executives, Mr. Liel Miranda, CEO, Mr. André Natal, CFO and Investor Relations Officer, and Mrs. Melina Rodrigues, Investor Relations Director. I'll now turn the floor over to Mr. Liel. Good morning, everyone. Thank you for being here. I think we're going to start with a slide that all of you already know because we have been bringing this slide every single quarter where we show you our strategy and the results that confirm the success of the strategy we are pursuing. First of all is the continuous growth in Brazil, where we still have a lot of opportunity to gain market share in all channels. In the specialized channel mainly, but also in the modern food channel, where we have been gaining good results and where we have been seeing good growth of our sell-out. The second-largest pillar is this international growth movement, where we have three geographies, each one in a different development stage, but we are in all of them defining our business model and pursuing our growth. In Europe, we already have a more defined model, a better-established brand, and we are accelerating growth. In the U.S., we have changed our business model, a partnership with Eastman, and this has allowed us to access more retail doors, and this should bring an improvement to our market share associated with cost reduction. In the distribution market, our focus continue to be in the main markets. In those markets, through our distributors, we have also been able to accelerate our growth in our priority markets. Marketing and portfolio, they are fundamental in our strategy. A great pillar of this future and current growth is the relevance of our brand, which needs to continue to grow and be developed. Last in our last quarter, the strategy combines those three pillars with a disciplined strategy, both in execution as well as financial, as well as of costs and expenses. There we have been also through that, we have been demonstrating improvements in our return on capital and margins. The combination of those four pillars have been our strategy, and it has been pursued for several quarters, and this was one more quarter where we demonstrated our progress and that we are keeping steady paces towards all of those pillars. I'm going to hand the floor over now to André, who will give you details on our results. Good morning. Elaborating a little bit on our volumes. Our global volumes saw an important growth over this last quarter of 9% globally. This performance is anchored a lot in Brazil's growth, which was also of 9%, considering, of course, the relevance of the region for our results. We also saw a favorable combination of results in the international market, where we saw an important expansion, especially in Europe, where we had our peak season and where we saw, once again, a double-digit growth of 21%, which is considerable. Reminding you that in the first quarter, we had seen a growth of 18% in Europe. We repeated once again a kind of a similar performance, consolidating a very strong performance for this first half of the year in Europe. This is an important indicator given the importance of this region for our expansion plans and brand positioning in the world. The emerging markets, which encompasses Latin America, Middle East, and Asia, the rest of the world, is also a region where we saw, again, double-digit growth, even though part of this region has been naturally affected by the geopolitical issues that you all know of. More than offsetting this movement, we saw a growth in Latin America and Asia that allowed us to reach this 12% growth. As for the U.S., even though we had a retraction of 30% in this specific quarter, it's not connected to the performance of the region. It's connected to the changing the business model that Liel mentioned and that we have been telling you about for a long time, which transferred our peak seasonal to the fourth quarter and to the first quarter, rather than the second and the third, considering our former business cycle. In the annual comparison throughout 2026, we have a different basis for comparison, which gives this result of -30%. On next slide, this one, we look at the first half of the year, which gives you a bigger, longer window and allows us to see better understanding without the contamination of the individual results for each one of the quarters. In this case, we see that USA in the first half of the year grew 40% growth. It's worth mentioning that after so many years having been selling almost a steady volume, we already start to see a very relevant growth, 40% so far in the year. In addition to entering new doors and participating in channels where we were before a little representative, now there is this symptom that can be discussed and this is indication of the execution we are managing to deliver in the U.S. In Europe, as I had said before, because of the combination with the first quarter of the year, there we saw certain instability. In Brazil, in average growth of 8%. We still, in the first half of the year, we grew 9%, which sounds to us as an interesting solid growth. We can also talk about that, the effects that this is going to have in our margins and gain of scale, and this is very important for the moment we are going through right now. Moving on to the next slide, we have a positive cash flow generation. This cash flow generation has been happening for many quarters already. There was just one quarter in which we failed, which it was negative BRL -37 million. We have been generating positive cash for a long time, which puts the company in this direction of deleveraging over time, as the graph on the right side shows. It's important showing you that in this quarter, this number of 0.5 leverage is already free of the last deal we made with Ioasys that was made in 2021. This has already been paid, and this is already discounted from this, yet we still have this leveraging of 0.5%. The leverage, by the way, is stable at a point which we consider very comfortable in terms of a capital structure and risk of 0.5%, but always with the trend that the company's going to be capable of generating cash and a business that over time will deleverage itself and which has been allowing us over time to also distribute money. We have also made own interest capital distribution, which also helps to hold the leveraging where it is because of the cash results it has yielded. Moving on to the working capital variation. We added one more information of the cash cycle so we can have not only a financial tracking, but also of the working capital, the quality of the working capital. We see a stability, we had exactly the same number in the first and second quarters with very small variation. There was a cash consumption. Seasonally, we had a large increase/decrease in the receivables. This is the moment we had been paid for the sales made in previous, but now we have a very strong issuance of receivables in Europe set off, which it was made by the important growth in Europe and by the sales in Europe. This demand some working capital, in terms of receivables. When we look on the right-hand side, the CapEx is pretty much in line with what we had last year and as our budget approved it in our last general meeting. We have been in this trajectory, which is very similar to the previous years. In the first half we ramp up, and in the second half of the year, we expected to have marketing and CapEx expenses to be higher to reach the number that we have approved for the general meeting of the year, and we are going to respect and pursue that number. Moving on to the next slide, we start looking at Brazil's performance in detail. Brazil had a strong performance in volume. We saw a growth of 9% in the quarter. This has been motivated by the sell-out expansion to 13% year-over-year, which is a considerable expansion. It's a double-digit expansion given the penetration of the category of our product in Brazil and the size and the relevance we have in Brazil. Naturally, growing 13% is none of something to render as small. This brings us in a volume very close to the levels we saw in 2021 in the first quarter. We can see now on the left side. There is still some scale, and there is some still difference to be gaining in the scale effect. However, when we look at our net revenue per pair, it's in these little circles. We can see there is strong evolution of this net revenue per pair. From 2023 up to here, we have been very careful in any movement. We have been careful before making any movement. This increase on the net revenue per pair year-over-year is not something just increase in prices. This is not the way we are working. Quite to the opposite. This is the combination of the increase in prices, but also an important effect of the mix and our combination of the mix, the product mix that we have been combining. To make it more premium. Increasing the average ticket has helped us to have a better net revenue per pair, allowing us to gain more than the current inflation rate. On the right-hand side graph, it's important to see, and it's worth mentioning that we had important gains in the food channel of BRL 2.4 million. When you look the comparison between the sell-in and sell-out, there has been an increase of BRL 2.4 million. This is something we have been doing to ensure that there is alignment between those two metrics. We have no intention of selling inflated, so as to say, volumes of sell-out, and that might generate an excessive inventory problem in the future. Over this quarter, we had a reduction in the inventory that we had stocked up in the first quarter, in our distribution chain, and now we pretty much reduce part of this volume. When we look in the graph on the right-hand side, over the past 12 years, the sell-in and sell-out, we remind you that the sell-out is always estimated. We don't really have a global vision and precise, accurate vision of the sell-out. This comes from a combination of different sources that we have access to. Following this indicator, that is the one we have been using, we have a stock-up of 2.4 million pairs, which is also compatible with the fact that the market has been growing. When we grow our sell-out 13%, this also demands a little bit more of stock levels in the chain itself. This is a slide that demonstrates an important commercial performance, both in the quality of our product mix, as well as in the expansion of volume, as well as in a disciplined vision of the inventory levels in our chain to ensure that is healthy and correct, considering the strategic moment we are in. Going through the gross margin in Brazil, this also saw a positive and important increase compared to the previous year. It was actually quite positive compared other years in the past, as we can see in this historical series of the past years in the line. We have the best second quarter, even though we had a small compression of scale compared to five or six years ago. This shows that over time, we have gained much more efficiency, and there are several elements behind that. There is the manufacturing efficiency, logistics efficiency, as well as the administrative gains, which is not shown here. Our operations has become more efficient. A combination of these several effects has resulted in a more efficient, in like 10 points, 10 percentage points higher, which is very healthy considering the gross margin per pair, which is pretty much like, you can see that in the circles, double what was five years ago. This is an important evolution, even despite of the scale effect that we are still missing a little bit compared to five years ago. Moving on to the expenses. We broke it down so you can see the variable, fixed, and marketing expenses individually. Considering the variable expenses, we are pretty much flat with previous years, but a little bit lower than we had in 2023. Eventually, marketing was higher in this quarter. We don't manage the marketing expenses trying to fit it as homogeneous, equally in all the quarters. This is not the best practice. This is not what we do. We do it based on our global calendar on which the marketing investments are based on. We respect the collabs, important activations we need to make around all the year. Especially because of the World Cup and because of some collabs we had in the year, this elevated our marketing to 10% of our revenue in that quarter. When we look over a longer period of time, in Brazil, we have been respecting 7%-8% marketing investments related compared to the revenue, which means that we increased it two points percentage compared to the previous quarter. The fixed expenses are slightly higher in this quarter. A little bit of a higher concentration connected to having a higher workforce. I think it is a permanent effort of the company, and we try to find ways to offset these effects that are always coming. You always have some offenders in terms of expenses, and our payroll is part of that. We have been gaining more efficiency, and this is what you can see on the right-hand side, where you can see our EBITDA margin, which is slightly higher. Maybe for the second quarter is an all-time high in our historic series. It's worth mentioning that we had a little bit more of a margin in our marketing expenses, considering the recurring marketing levels we have been investing in. It was slightly better than a year ago and much better than some years ago. There is this evolution from 11-20 percentage points, is extremely important to be noticed. We obviously are doing that in addition to the fact we are still missing on the scale effects that we still have not fully recovered compared to a few years ago. Again, we are comfortable with these levels, the levels we have reached, and we still want to keep working to improve the company, and we will do so. Moving on to the international operations. As I said, it also had an important performance in terms of volume, even though offsetting the seasonal results of the U.S., considering its new business model. There you can see a little bit better of a volume scale, but it's important to see the graph on the left-hand side showing that we sold 3.5 million pairs than we sold actually in 2021 in the second quarter. This is an important scale compression. We're talking about 3.5 million pairs in a total of 7.7 million pairs sold. It's actually quite relevant scale difference. Despite this, we will see on the next slides that we have been able to compensate our margins and profitability on the next slide. Moving on to the next slide, you can see that the gross margin levels has recovered compared to that moment in 2021 where we had much higher sales volume. It's also 3% increase year-over-year. We had those important moments in 2023, which all of you know about and have followed, where we were pressured in our operations. Now we are back to a gross margin level, which is extremely important and in alignment, even though with our historical series, as you can see in the line of the graph, even though we are still missing on these 3.5 million pairs sold a few years ago, more than we have sold in this quarter. This is something that we want to continue working on to gain this scale effect back. In the next slide, we go back to paying attention to the expenses. The marketing expenses go back to a level of 14%, which we also understand to be totally healthy because there are several regions where we are building brand. In other regions, we are strengthening our brands. In these regions, we believe we have a lot of potential for expansion. The variable expenses level is following. You can see this. We reached here 15% of our revenue back to one of the best levels in our historic time series. Especially the fixed expenses. Here there is a especially important contribution from the American operation because this change in the business model makes us much lighter and more efficient in terms of expenses. This helps us to bring the profitability levels back to another level, which can be seen on the right-hand side. The EBITDA margin brings us back very close to that levels we were in 2021 of 30%. We reached the 29% right now. It's a great evolution. We actually reached -1% in our margin. We can see in this trajectory that was steep and strong to go back to a very good level in terms of EBITDA margin. Even in margin per pair, we had the scale margin that was negative, but we had volume that was much more than offset this effect, taking us to EBITDA per pair much better than we had in the previous years. We will keep working the regions where we have a very good margin per pair, and if everything goes well there, we'll keep moving forward in those regions and increasing even more positively of our margin. Moving on to Rothy's. Rothy's expanded its gross profit. First, we had negative impacts of the tariffs, and now we had the refund of those tariffs. Concentrated in the second half. It was not for this effect. We would be at 62%, which is consistent and aligned to the historic time. A little bit higher than we did in this same quarter last year. In terms of gross profit, we are pretty good considering the EBITDA margin had a small compression when we look at over the past 12 months. It's a little bit smaller year-over-year. Looking at the last 12 months, it's also slightly smaller than we had seen already. There is a performance gap, especially in the online sales, in which we have been working together with the management to understand, diagnose, and understand the action plans we are going to reignite the online sales performance mainly. Overall, we don't see any kind of substantial change in the performance trajectory of the company. I think this was my last slide. As usual, I'd like to thank you for your attention and time and open up for questions in case you have it. We will now begin the question and answer session. As a reminder, to ask questions, you should click the Q&A icon at the bottom of your screen and type your question to join the queue. When your name is announced, a prompt to activate your microphone will appear on the screen, you should then activate your microphone to ask your question. We kindly ask that all questions be asked at once. Let's move on to our first question. This is [Danny], Analyst, XP. [Danny], go ahead. [Good morning, Natal and Liel. Thanks for taking my question, and congratulations for your positive results. I have two questions from my side. The first one is about the raw materials dynamics. This has been asked you before. I think your shares reflected this worry about the volatility of the oil price. I think I asked you this about the last quarter, and you said there was certain purchase anticipation that had not been so much relevant, but it was done either way. I wanted to understand how this contributed to the margin in this second quarter, and how we were looking at the upcoming quarters and the management of the raw material. I also like to know how we can separate today that from the exchange rate fluctuation effect. A second question that is somehow connected to the first question, but a little bit broader, is your pricing increase distribution. Natal, you said you have been very careful when a big part of the revenue per pair has come in from a better mix and not from the price increase, but I would like to understand how much you see a need or room for increasing prices, considering the more challenging moments we are living, especially of the financial aspects in Brazil.] Thank you, [Danny]. I'm going to try to answer both questions. You ask it and more people ask it, in fact. Yes, we have been hearing this question a lot. We have been asked this a lot. We have been trying to explain all the mitigation effects that exist in our numbers. Our sensation is that there is a little bit of an overreaction to the raw material prices. Of course, it is absolutely important because our raw material is only part of our cost, right? Inside all raw materials we have, the rubber is only one part of all the raw material universe that we use. We also have a stock of this raw material. I have already mentioned that we have a relevant fixed part in the contracts we have, which also is mitigating to the price increases. What you mentioned, the exchange rate fluctuation is another thing. Although we have an increase in the raw material prices, we are seeing right now a decrease in the USD price compared to the BRL. This kind of offsets the results. You're right. I think the result that we expect right now is that shows the evidence of what we have been explaining over some time. We explained that in our last webcast. The numbers show, in fact, that this number is pretty mitigated, diluted in our results. Although despite all of those negative effects, we still saw very positive results, right? We also have our operational scale effects. We have been selling larger volumes. This also helps us in the margin per pair, right? Speaking particularly on the stock levels, we have been benefiting over the past quarters of a price that had not yet been affected by war. We anticipated. The first shipments we received with higher prices contaminated by the geopolitical questions were in June. We still have received very little effect. Again, when we saw the effects again, we also saw the geopolitical issues kind of accommodate and the oil levels go back, oil price go back. I know it went up close to $120, and now it went back to very much more normalized effect. We don't have any opinion about the future prices, but what we saw is that this somehow offset. This was somehow mitigated. When we see the price of the raw material arriving for us right now, they are pretty much aligned with the price we already have in our stock of raw materials. We don't see a very strong negative effect for the upcoming months. There was a very short period when the prices were affected because we already had a stock, because we already had benefited from a better pricing that we had negotiated. Again, although we navigated a little bit of this bad prices period, there was a small uptick in prices, but this is already back to the average prices we have with our inventory already present in our stock. Punctually, it might happen, but in longer period of times, we don't think that the prices will be much higher than what we have been receiving right now for our purchase. As for the price increase environment, we have been very careful, as I mentioned before. This 7.5% price in Brazil has about 2.5% of it, which comes from the mix, have no connection whatsoever with adjusting prices to consumers. Price adjustment to consumers is not an adjustment just because of linear inflation adjustment to all products. We are doing this with data, like data-based, and always looking at opportunities that exist for a few or for some items, and to all the corrections we need to make to each one of the items. On the other hand, we don't see any kind of pressure on us to make an adjustment of prices. The sell-out is showing that our of 13% increase does not show us any pressure to make any kind of a very steep adjustment. We do not have any intention to make exaggerated price adjustments to consumer from now on. What we have been trying to do is always to have a channel and portfolio mix that makes us deserve to have this better average ticket price, not only just adjusting pricing for the sake of it to consumers. This will continue to be our behavior and posture and the vision. We do believe that there is some flexibility. This thesis that we can adjust prices to consumer at any time, that our margin is very small is not true. It has already proved negative in the past, and we measure this elasticity, and we make our adjustment decisions based on the elasticity of our prices. This takes us to a position of being capable of having prices which are 7%-8% higher than before, but with our sell-out growing 13%. This is part of the discipline that we want to continue to display in the future, and that we expect it to continue to work in the future. [Absolutely clear. Thank you very much for your answer, André.] The next question is by João Soares, Sell-Side Analyst with Citibank. João, open your microphone and go on. Good morning, Liel, Natal. Amazing results once again. I have two questions from my side. I would like to understand the sell-out from Brazil caught our attention. We see the sell-out at low single digits, that in some quarters it was flat, and in this quarter you delivered 13% in sell-outs increase. I'd like to understand how much it is sustainable in the upcoming quarters. Given the investments that you have, the investments in marketing and investments in the brand image, also understanding how much it is represents in terms of market share, I think this is relevant, important to hear about that as well. Another question is that I was making some math here, and the last time you delivered this international margin was with much higher volume. You deliver a similar margin with 31% to less volume sold, right? I'd like to hear a little. I know you don't like to give this middle term vision of the operational, but we are clearly working at another level right now. There is a lot of the commercial dynamics in the U.S. If you could talk to us a little bit about how we could imagine this potential, like can this margin come to a level that we have in Brazil? Any kind of idea? This is extremely important, guys. Thank you, João, for your question. Starting with the first question about sell-out in Brazil. Actually, we know that the sell-out in Brazil is variable, right? You remember that. Last year we had some quarters where we grew high single-digit quarters, and we had quarters where the sell-out didn't grow. In the second half, we had the World Cup, so we had this growth in sell-out. Havaianas is connected a lot with this Brazilianness effect. Our On-Time In-Full was above 80%, so we ensured that consumers found the products they wanted in the channels they wanted at the right moment. A third thing is that we have been improving our performance. This 13% sell-out is a consequence of us executing better in this specialized channel, executing better our operations in the modern grocery channel, where we have more opportunities, we have more opportunities to grow as well. There is also a third variable, which is structure-based. We have a very good market share in the distributors and wholesalers. In this quarter, different from previous quarters, it did not lose importance in the market as a whole. When you combine all of these variables, a one-time variable that was a World Cup that helps us to be present in the mind and in the hearts, on the feet of all consumers. Our fundamental better execution variable with better displays, better visibility at the points of sale and being the most important points of sale. This third variable, when we have such an important channel having good performance, this all added to this perfect, great performance, and the sell-out is connected to the market share. In the specialized channel, we didn't have a market share measured, but in the grocery market share measured as by Nielsen, we gained almost two percentage points in market share because our sell-out is above the growth in the category. Because of all of these variables that I mentioned, we don't give guidance, we don't try to predict the future. We are working hard to have a very positive second half of the year, but we are not able to give you an idea of the sell-out levels we could expect for the second half of the year. I think this is the best answer you can have. The best indication you can use is the improvement of our execution at the points of sale via on-time, in-full numbers, communication, display. We didn't have a on-time, in-full growth in the second quarter. It has been happening over the past quarters. This is about the sell-out in Brazil. As for the international margin, this is also not on-time, in-full growth. We have been working on that for several quarters. In this quarter, in addition to all of this improvement in costs that we have been performing over the past two years, in addition to the best execution to grow our volume that we also experienced, the change in the volume in the U.S. had a significant contribution because we used to have costs associated with warehousing personnel that we have ceased having since the first quarter of the year in the U.S. Now overall, we are operating through distributor with a much better margin in the U.S. This is also not a one-off number. This is not a one-off phenomenon. This is the evolution of the work we have been carrying out over the past two years. When you look ahead, obviously, we don't give guidance and we don't try to predict the future, but as you said yourself, we now have a great opportunity of regaining the scale we once had in the past with a much better and much more efficient operation. We believe that all the efforts we are performing right now would be able to allow us to recover this volume we managed to sell in the international operations in the past, which should contribute to a better profitability in the future. Would you like to add anything, André? I think, the only thing I would add in my analysis and in the opportunities in the international market, about your last question, is that it's very clear to us the size of the opportunity that's going to be over index, a higher growth with a high margin, higher price point because of the image positioning, especially in the American market and European market, we're going to have growth rates that are going to be higher than the global margin of the company. This should help us over time, not only decompress the international scale, but also increasing the margins, which are already better. We're not going to give you any guidance or projection. But again, this is where we believe that our opportunities for capitalizing are. We believe that there is where, in these geographies, is where we can gain the most in the future. This is what is in our planning, in our scope for the future. Just one clarification. Given the on-time, in-full that you have right now and looking at the European volume, you know that certainly your relations with the key accounts have improved in Europe. What is the potential of Europe right now? Can we imagine that you can reach an even higher scale than you had, or more key accounts in Europe or more countries in Europe in the future? What can we imagine for the future? João, our analysis in the end of last year comprised exactly that. It was not about Europe, it was about the entire international operations. We tried to be as much as we could based on data and fact and market analysis to understand the size of the demand, where the demand actually is based on price point, based on channel, et cetera. All the breakdowns we could have. We didn't have an ambition that was just for the sheer ambition of just for having this ambition, for the sake of having this ambition, and we would know exactly where to seek this growth. Obviously, we're not going to tell numbers about this potential and these studies, but the biggest conclusion we reached was that the international market is big enough to almost believe in any number. The only point is to adjust the timing for a perfect execution. This is the big challenge. It's always very tempting when you look at the market, which is bigger than a 1 billion annual pairs. Right now, we have a stronger brand that is top of mind that's listing some of those markets. It's very tempting to grow the volume a lot in a short period of time, we could compromise and undermine again our service level. The challenge here is balancing the two things. What you see in this quarter is a little bit of the effect of this discipline. We are having a double-digit growth in Europe and with the capacity to deliver in Europe and without hurting our relationships with our key accounts and customers and opening doors that we had lost with all of this movement. This is the path we are pursuing. Specifically, when we talk about Europe, we have a very large brand awareness, which is already established. The most obvious thing to do, and which we're doing right now, is to ensure the correct supplying of the channels where we have to be so we can monetize and capitalize better on this awareness that we have. Of course, there are other geographies that we can add to this package, which would be a second stage of this expansion. What we see ahead of us is a very promising expansion because we have both a lot of space because although the size of the brand, our market share is very small, so we have a lot of space to monetize our market share, our brand awareness that we have already built. We also have space to grow in other geographies and break into those geographies because they are promising and there we still have to build our brand awareness. There is a lot of potential in the market, but always with this care of the execution of the discipline so we don't have this fluctuation of the volume we leave it over in the international operations over the past 10 years. We want to have a very good calibrate and well-executed growth in the international market. Excellent, guys. Thank you. The next question is from Joseph Giordano with JPMorgan. Joseph, open your microphone and go ahead with your question. Good morning, everyone. Thanks for taking my question. I'd like to explore two points here. I would like to go back to these international results. I'd like to explore a little bit, thinking about the economics of the international operations given your new business model. Maybe it's early to know, to explore a little bit to the volumes. Also, in Europe, we come from years that where you had a kind of agitated performance in Europe. I would like to see if you see any kind of a room for gaining any market share. Also in Brazil, I would like to understand if we can have more space in the food channels in Brazil and how we can think about the product mix component since it's an important component of the margin. I'd like to understand what you were talking about, the new channels, the modern channels. Maybe this implies in having new categories of products or maybe new products, I don't know. Joseph, thanks for your questions. I will start by taking your question about the U.S. operations, and Liel will talk about the other points. What I can tell you about the U.S. new business model is that the two large drivers that we were seeking with this distribution partnership is, on the one side, having a starting point that's much leaner than in the past, considering that we used to have a warehouse, we used to have offices, we used to have personnel, we used to have a big office, all of this structure, organizational structure in order to be there, to directly operate. For a small operations, that didn't justify that. We had the objective of, before anything else, becoming leaner, in terms of general expenses and administrative expenses. Also we thought that this partnership could catapult us to having better distribution. This is what we expect, and this is exactly what has been happening so far. What's going to happen from now on, this is already translated into the numbers we see, we'll keep following and monitoring the numbers, we hope to see more of this throughout the year. We are going to have expenses which are much more efficient. You saw the size of the expenses level drop that we had in the international. It's much connected to this change in the U.S. At the same time, I'm not going to give you any numbers for the future because we don't give guidance, and we have difficulty ourselves to know this number exactly every year because this is not a same-store sales. It's also expansion of distribution number. It's difficult to predicting how many new doors we're going to be every new year, and how much more space we're going to gain because of the performance in the previous year. There is a component of uncertainty here for us, for our partnership, we are not comfortable to share any kind of thought on that. What I can tell you is that since the beginning of the partnership up to now, what we see is that we have been opening very important doors, especially in the channels where we had a gap of presence. We didn't get into the more sports-driven. Some of those stores, sometimes they have hundreds or thousands of points of sales, and we had zero penetration there, we checked this box. Now we are better distributor in the U.S., and the sell-through performance, which would be the sales from Eastman, our partner, to the distributors, to who used to be our direct customer. This sell-through comparison, what we sold directly to those retailers and what Eastman is selling is a very important growth. It's a performance aligned to what you saw in terms of performance of our selling. This, our volume growth, is not only stocking up of the inventory. We're not only selling to Eastman. It's in fact the volume that Eastman is selling through to the retail with good perspectives. I would say that several of those new doors that were open to us got us into some hundreds of points of sales to test us, and now we might be able to be in all of their points of sales in the future, we can gain traction. Expect to gain traction as we are sold in new points of sales and perform better. This should provide us with more traction for the next customers, with the same clients and with new clients. The performance so far has been very important. We saw very high double-digit growth so far, the first half of the year. After having four years of volumes stagnate, we are now going out selling our Havaianas 40%, and the sell-through is not much different from that right now. We have also been visiting the market there, and the price execution there is also very good. At first we see a very good movement in line with the expectations we had. We will not give you guidance, and we keep gaining traction in this market, which, because this is a market of over 140 million pairs, but we have a very small market share, but very respected brand image there. We should be able to monetize much better in the upcoming years in the U.S. As for Europe, I think it's always important to remember, as you said, of all the problems we faced in 2023, 2024, where we lost volume. This made our clients buy for the next year based on the sales sold in that specific year, which was smaller. The biggest number of inflection was in 2025, through new, better OT presence, more effective presence in the stores. We reverted this trend. We grew single digit, we grew in Europe in 2025. This was the biggest turnaround because it allowed our clients to place orders already assuming a better performance and some level of growth. In 2026, we have been seeing even a better number than our clients expected, because we're talking about high single digits growth in 2025. So far, we are looking at low double-digit growth. The only thing we can tell is that we keep executing well our operations, ensuring supply to our clients and ensuring that our presence in the stores is happening. Our sell-out is coming with a 20% growth, which should signal to our clients in Europe, not only the ones who buy right now, but also to the ones that are prospect buyers, to place orders for 2027 even higher. We still obviously don't know the number. We are going to have visibility of that only in the fourth quarter. Theoretically, this is what should happen. We should have this turning point in 2025 and so far in 2026, the performance revives this performance of 2025. We're going to collect the orders for 2027, ensure that we keeping this trajectory. As for Brazil, we have already talked about that. This is part of our strategy. In our strategy, the grocery channel, there, we have a very high market share, close to 80%. When you break down the grocery, there is the modern, which is the cash and carry, where our market share is still below 70%, whereas in the traditional, let's say, doors, it's above 80%. This is our biggest opportunity. We have been pursuing it, the growth has been coming over the past years. We have been growing 3%-4% market share in the modern retail doors. We still see space for growing in the grocery, especially in the modern grocery channels. In the specialized channel, this is a sea of opportunities for us because we have a market share there which is way below what we see in the grocery channel. We have approximate market share of 30%-40%. We don't have the same accuracy of the specialized channel because there isn't an institution like Nielsen that operates in the specialized channels that can give us this number. Based on the best estimates we have, our market share is significantly lower than in the grocery channels. In the channel, and the channel as a whole is as large as the grocery channel. In the specialized channel, the sky is the limit. We have a huge potential if we have the right execution. What was the historical problems we couldn't deliver on-time, in-full? Our OTIF levels were too low. We have been improving this significantly. We are already operating above 80%, We'll keep working to reach on-time in-full indicator, even at higher numbers, supplying in the right moment with the right price to the right person and the right product. The second point is that we didn't have a good presence in the points of sale. We keep focused on improving our distribution and improve the presence of our Havaianas brand in the specialized channel. Also the portfolio where we concentrated a lot in We had a adequate portfolio to the grocery channels. Now, over the past few years, we have launched new items that have much better fit with the specialized channel. This combination of store execution and portfolio availability will keep enabling us to have opportunities for growth in the specialized channel for a long time because there is a big gap between these versus the grocery channels. I hope I have answered your concerns. Thank you. You did. Thank you very much. Our last question comes from Vinicius Strano, Analyst with UBS. Vinicius, open up your microphone and ask your question. Good morning, Liel. Good morning, Natal. Good morning, Melina. I'd like to explore a little bit the international market from a gross margin perspective. If you could make some comments about what you see of contribution comes from the mix of the geographies. Thinking a little bit more of the gross margin coming from Europe, USA, and the IDM to understand this mix effect. Also the improving the margins due to other factors Also the gross margin growth in the specialized channel in Brazil. Where do you see this contribution coming from? How do you see the mix contribution in the gross margin in Brazil? Vinicius, thank you for your questions. Let me address your concerns. As for the international operations, we indeed have a margin expansion in both geographies, both actually in Brazil and in abroad. We had a large gross margin expansion. This gross margin expansion has an evolution of the mix of the products. You are correct. We saw a big growth in Europe, which is a growth. It's a region that brings us an average, a higher average, gross margin because of the price points, because of the mix of products we sell there. On the other hand, there are two other effects. One that is negative, one that is positive. The one that's positive is the fact that the market in general that saw a decrease, which is the Middle East and Africa. This is a market where typically we have a lower gross margin. This margin was the most affected because of the geopolitical current issues. We had a sell-in decrease there in the second quarter compared, the IDM grew 2% volume, but gross, especially concentrated in Asia and Latin America, where our margins are a little bit better than in the MEA region, Middle East and Africa. Europe growing very well. It's a combination of Europe growing very well, 20%+, MEA losing its representativity. This mix of prices is favorable, of regions is favorable because of that. Also in the U.S., we have a smaller margin price. This is the negative fact complementing what I had said before in Joseph's question. The gross margin in the U.S., because of this new distribution model, tends to be smaller, right? Because we share this with the distributor. Now we have to accommodate the margin that is paid to the distributor. He's our commercial partner. Based on that, we have a smaller gross margin, but with a better EBITDA effect because the expenses go down much more than the proportion of sales we have. This effect of negative effect of the U.S. was also reduced because of the smaller sales in the United States. The U.S. didn't have a much large sales because of the seasonality. Year-over-year We have a seasonality, but we also had this favorable combination of Europe going up and MEA going down, which also helped us in the combination of margins. Thinking ahead, what we imagine is that over years, this is the way we plan our vision to grow. We should continue to have a growth that is over index in Europe and U.S. Of course, we also have priority geographies inside Asia and in Latin America. When we look at the composition of the mix of regions, it tends to be a more premium mix, specifically considering the gross margin. It should be a profile where we have a favorable growth of margin if we have a good growth in Europe and in the U.S. When you look at Brazil, your second question, overall, we see better margins in the specialized channel. However, in this quarter specifically, the growth in the specialized channel was a little bit smaller than in other specific sub-channels of the grocery channel. Liel mentioned earlier how we saw the traditional grocery channel, where we have a very high market share. This channel specifically saw a bigger growth. When you look at that net sales expansion prepared, this is much more connected to the mix of product than to the mix of channel. The mix of channel had a very small contribution in this quarter, in particular, when we compare to a year before. The price evolution, the growth in the specialized was positive but was smaller than we saw in the other sub-channels of the grocery channel. In the international operations, yes, there is a better effect of the mix. In Brazil, no, it was in fact a more premium consumption mix. This has helped us to have this gross margin improvement. I hope I was clear in the description of the effects. Thank you, Natal. The question and answer session is now closed. [audio distortion] We would now like to close the webcast. The IR department is available for answering any further questions you might have. Thank you for coming, and I'll see you next time. Bye-bye.