Companies

Grendene reports lower revenue and profitability in the second quarter

Aug 14, 2026 Brazil

The Brazilian footwear manufacturer has reported a lower revenue and profitability in the second quarter, as challenging consumer conditions took their toll on its domestic business

“The second quarter of 2026 unfolded in a still challenging consumer environment, marked by greater consumer selectivity, intense competition in the domestic market, and a macroeconomic backdrop that continued to influence purchasing behavior and inventory replenishment dynamics throughout the distribution chain”, reads the statement.

Second-Quarter Results

In the second quarter of the 2026 financial year, Grendene reported a gross revenue of 731.8 million Brazilian reais, a 3.2% decrease compared to the same period last year, with total sales volume decreasing slightly by 0.9% year-on-year to 26.8 million pairs.

This overall decline in gross revenue was mainly due to an unfavourable sales mix, which reduced gross revenue per pair by 2.3%, from 27.98 to 27.33 Brazilian reais.

Gross revenue in its domestic Brazilian market decreased by 5.0% year-on-year during the quarter to reach 544.0 million Brazilian reais. This was due to cautious consumer demand, which was affected by high interest rates, high household debt and delinquency, and strong competition from domestic and imported retail products.

In contrast, it increased by a modest 2.3% in international markets, reaching 187.8 million Brazilian reais. The operating environment continued to be characterised by moderate economic growth, foreign exchange volatility, and varying recovery trends across the regions served by the company.

In the second quarter of this year, Grendene recorded consolidated a net revenue of 552.8 million Brazilian reais, which is broadly in line with the same period in 2025, with a slight decline of just 0.4%. In the first half of the year, consolidated net revenue amounted to 1.09 billion Brazilian reais, reflecting a 2.9% year-on-year decline.

The company’s gross profit remained stable at 234.5 million Brazilian reais in the second quarter, with a 0.6% year-on-year increase and a gross margin of 42.4%.

However, adjusted EBIT fell by 48.2% year-on-year in the quarter, dropping to 15.8 million Brazilian reais. The margin also narrowed, from 6.1% in the same quarter of 2025 to 3.3%, despite the gross margin remaining resilient and operating expenses remaining stable. Reported EBIT declined by 78.6% to 9.7 million Brazilian reais.

In the second quarter of 2026, Grendene’s adjusted net profit fell by 48.6% year-on-year to 95.3 million Brazilian reais, with the margin narrowing from 37.2% to 19.7%.

The Brazilian company reported an adjusted EBIT decline of 41.1% in the first half of the year, to 74.8 million Brazilian reais. The margin also fell, from 12.3% in the same period of 2025 to 7.6%. Adjusted net profit declined by 37.0% year-on-year, to 217.4 million Brazilian reais.

Image Credits: hypebae.com

Brazil Companies Footwear Grendene Quarter Results Results