This article first appeared on GuruFocus .
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Revenue:BRL 915 million, a decrease of 12.2%.
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Gross Margin:45.2%, a decrease of 5.7 percentage points.
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Net Income:BRL 286 million, a decrease of 17.7%.
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Recurring EBIT:BRL 122.5 million, a decrease of 43.7%.
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Volume of Sales:35.3 million pairs, a decrease of 19.8%.
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Export Volume:Decrease of 14.7%.
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Domestic Market Volume:Decrease of 21%.
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Online Sales Growth:27.1% increase in GMV.
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Melissa Store Locations:438 stores, up from 422 the previous year.
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Dividends:Distribution of over BRL 1.4 billion approved.
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Financial Result:BRL 161 million, an increase of 8.6% from the previous year.
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Release Date: March 06, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Grendene SA ( BSP:GRND3 ) maintained healthy margins despite reduced sales volume, focusing on price strategy and product mix.
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The company generated a robust financial result with BRL57 million in cash and approved a dividend distribution of over BRL1.4 billion.
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E-commerce sales showed significant growth, with online sales increasing by 27.1% and Melissa's online sales representing 18.7% of domestic sales.
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Grendene SA expanded its Melissa store network, closing the year with 438 stores compared to 422 the previous year.
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The company achieved a strong financial result with a total financial result 8.6% higher than the previous year, driven by a higher CDI and exchange results.
Negative Points
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Domestic demand was pressured by macroeconomic factors such as high interest rates and suppressed income, leading to reduced sales.
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Grendene SA faced strong competition from imported goods, with a 21% increase in imported footwear impacting market share.
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Export volumes decreased by 14.7%, with gross revenue in reais down by 9%, affected by tariffs and logistical challenges in key markets like the USA and the Middle East.
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The company experienced a 19.8% decrease in total sales volume for the quarter, with domestic market volume decreasing by 21%.
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Recurring EBIT decreased by 43.7%, and gross profit fell by 27.1%, primarily due to lower sales volumes and increased labor costs.
Q & A Highlights
Q: There was an internal discussion and legal one about the possibility of distributing dividends coming from tax reserves. Is there a future risk of this decision being questioned by public entities? A: Alceu De Albuquerque, Chief Financial and Administrative Officer, stated that the risks of questionings are minimal. Legal advisers have confirmed the validity of the lawsuit, and no questions have arisen from the IRS within two years of the ruling. The company feels secure about distributing incentive reserves for ICMS.
Q: Could you give more details on what has been done related to production adjustment and structure to adapt to current volumes? What can we expect from operations in 2026 and international competition? A: Alceu De Albuquerque explained that the company reduced its workforce and administrative structure, focusing on direct labor adjustments. For 2026, despite challenges like elections and the World Cup, Grendene expects growth in revenue, volume, and margins, aided by structural adjustments and favorable raw material conditions.
Q: How did macroeconomic factors and competition impact Grendene's performance in 2025? A: Alceu De Albuquerque noted that high interest rates, suppressed income, and increased competition from imported goods pressured domestic demand. These factors, along with international market challenges, led to inventory adjustments and impacted sales volumes.
Q: What were the main financial results for Grendene in the fourth quarter of 2025? A: The company reported a decrease in volume by 19.8%, with gross revenue down by 12.2%. Despite these challenges, Grendene maintained healthy margins and generated BRL57 million in cash, approving a dividend distribution of over BRL1.4 billion.
Q: How did Grendene's e-commerce and digital integration perform in 2025? A: Grendene saw robust growth in online sales, with GMV increasing by 27.1%. The share of online sales in the domestic market rose from 5.24% to 7.6%, and Melissa's online sales represented 18.7% of total domestic sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
