Companies

Grendene reports another softer quarter

Nov 12, 2026 Brazil

The Brazilian footwear group, which owns brands like Ipanema and Melissa, has seen its revenue and profitability drop again in the third quarter of 2026

In the third quarter of the 2026 financial year, Grendene recorded gross revenue of 951.0 million Brazilian reais (153.5 million euros), a 7.2% decrease compared to the same period last year. This reflects a 1.5% decrease in sales volumes (35.8 million pairs) and a 5.7% decrease in gross revenue per pair, which stood at 26.59 Brazilian reais (4.29 euros).

“Grendene’s performance in the third quarter of 2026 reflected differing trends in the domestic and international markets”, highlighted the company.

In Brazil, the company sold 30.0 million pairs during the third quarter, representing a 3.6% year-on-year increase, with a gross revenue per pair of 25.22 Brazilian reais (3.59 euros), representing a 5.3% year-on-year decline. Ultimately, total domestic gross revenue amounted to 757.2 million Brazilian reais (122.2 million euros), a 1.8% decrease compared to the third quarter of 2025.

Grendene also exported 5.8 million pairs to international markets during the quarter, which was a 21.6% year-on-year decrease, at an average price of 33.69 Brazilian reais (5.44 euros) per pair. Total third-quarter gross revenue was 193.8 million Brazilian reais (31.3 million euros) reflecting a 23.4% decrease compared to the third quarter of 2025.

The Brazilian footwear company recorded a consolidated net revenue of 742.1 million Brazilian reais (119.8 million euros) in the third quarter of this year, which represents a decline of 2.4% compared to the same period a year ago.

Grendene’s gross profit totalled 329.5 million Brazilian reais (53.2 million euros) in the third quarter of this year, marking a 6.8% year-on-year decline. Meanwhile, the gross margin fell by 2.1 percentage points to 44.4%. This was due to lower gross revenue per pair, changes in the sales mix, and industrial cost dynamics.

Operating profitability also weakened, with reported EBIT falling by 17.8% to 62.2 million Brazilian reais (10.0 million euros), while the EBIT margin declined from 10.0% in the third quarter of 2025 to 8.4%. On an adjusted basis, EBIT reached 109.0 million Brazilian reais (17.6 million euros), a 7.5% decrease, while the adjusted EBIT margin was 15.2%, compared with 16.7% a year earlier.

Grendene reported a net profit of 121.7 million Brazilian reais (19.7 million euros) in the third quarter, which was down by 12.1% year-on-year and gave a net margin of 16.4%. Excluding non-recurring items, adjusted net profit totalled 151.0 million Brazilian reais (24.4 million euros), reflecting an 18.2% decline, while the adjusted net margin fell to 21.1% from 26.2% in the third quarter of last year.

Nine-Month Highlights

In the first nine months of 2026, Grendene reported a net revenue of 1.83 billion Brazilian reais, which represents a 2.7% year-on-year decline.

Compared to the first nine months of the previous year, adjusted EBIT decreased by 24.9% to 183.8 million Brazilian reais (29.7 million euros). Net profit totalled 313.3 million Brazilian reais (50.5 million euros), reflecting a 20.8% decrease, and adjusted net profit stood at 368.4 million Brazilian reais (59.5 million euros), reflecting a 30.5% decline compared to the same period in 2025.

“Management remains focused on executing its operational and financial priorities, seeking to balance short-term performance with initiatives aimed at strengthening the business and enhancing its long-term competitiveness”, reads the statement.

1 BRL =1.16 EUR

Image Credits: couturetroopers.com

Brazil Companies Footwear Grendene Quarter Results Results