Brazilian footwear maker Grendene recorded a 27 percent drop in Q1 profitability to 41.6 million Brazilian reais (€6.9m) despite a 3.1 percent improvement in gross revenue to R$604.4 million (€100.6m) for the three months ended June 30. Ebit was R$22.3 million (€3.7m) as gross margin improved by 170 basis points to 42.6 percent.
Net revenues rose by 3.6 percent to R$480.3 million (€80.0m) from R$463.6 million. Pairage was essentially flat at 26.7 million pairs with the sales gain attributable to price increases. The group reported “robust” men’s sales from its Rider, Cartago, and Mormaii brands in Brazil.
Q2 exports equaled 4.2 million pairs and R$97.7 million (€16.3m) in gross sales. However the group called the market environment outside of Brazil as both “unstable and unfriendly,” citing political and economic issues in Latin American countries, a struggling US economy, and rivalry with Asian footwear producers due to falling freight costs.
