Companies

Grendene posts mixed results in 2025

Mar 26, 2026 Brazil

The Brazilian owner of the brands Melissa and Ipanema reported mixed results for 2025. Although gross revenue increased, profits fell amid declining volumes and a challenging macroeconomic backdrop

“In the 4Q25 and for the full year, the macroeconomic environment remained challenging, with persistent headwinds including elevated interest rates, ongoing inflation pressuring household budgets, and increasingly selective consumer behavior. This backdrop had a meaningful impact on demand dynamics in 2025, affecting sales volumes, the pace of inventory replenishment across the retail chain, and purchasing decisions within distribution channels (…)”, reads the statement from Grendene.

Full-Year Results

Despite a decline in gross revenue of 12.2% in the fourth quarter of the 2025 financial year, Grendene reported a gross revenue of 3.40 billion Brazilian reais (563.0 million euros) in the full year, reflecting a 5.1% increase compared to the previous year.

In its domestic market, full-year gross revenue declined by 2.6% year-on-year over the twelve-month period to 2.58 billion Brazilian reais (427.8 million euros). This reflected a 14.5% decrease in volume, which was partially offset by a 13.8% increase in average selling price.

However, in foreign markets, Grendene’s gross revenue increased by 40.4% in 2025, reaching 817.1 million Brazilian reais (135.2 million euros). This was due to a 4.0% increase in the volume of goods shipped and a 35.0% increase in the average selling price. It was also achieved despite a gross revenue decline of 9.1% in foreign markets in the fourth quarter.

Overall, this is consistent with an increase in gross revenue per pair, which grew by 18.3% in the full year, driven by mix adjustments and a higher share of value-added products.

Grendene reported a full-year net revenue of 2.58 billion Brazilian reais (427.8 million euros), which was 1.7% lower than in 2024. Net revenue declined by 18.0% year-on-year in the fourth quarter alone.

In terms of profitability, EBIT totalled 324.9 million Brazilian reais (53.7 million euros) last year, a decline of 41.7% compared to 2024, giving an EBIT margin of 12.6%. Excluding non-recurring items, recurring EBIT amounted to 367.3 million Brazilian reais (60.8 million euros), reflecting a 27.7% year-on-year decline. In the fourth quarter, EBIT and recurring EBIT declined by 47.7% and 43.7% year-on-year, respectively.

Net income reached 644.8 million Brazilian reais (106.7 million euros) in 2025, representing a year-on-year decline of 12.3%. Meanwhile, recurring net income increased by 2.4% to 815.9 million Brazilian reais (135.0 million euros). Net income in the fourth quarter also declined year-on-year.

“At the end of 2025, the company maintained a solid financial structure, high liquidity, and disciplined capital management, even in an environment of heightened competition and changing consumer behavior”, highlighted Grendene.

1 BRL = 0,17 EUR

Image Credits: topview.com.br

Brazil Companies Footwear Grendene Quarter Results Results Year Results