Grendene (GRND3) Q1 2025 earnings summary

Executive summary

• Gross revenue rose 6.5% year-over-year to R$705.4 million, with recurring net profit up 8.2% to R$159.8 million and recurring EBIT up 6.9% to R$96.5 million, despite a 10.5% drop in volume.

• Export growth and higher average prices per pair offset domestic volume declines amid macroeconomic uncertainty.

• E-commerce GMV grew 18.5% year-over-year, with online penetration rising to 6.8% and gross margin in digital commerce reaching 69.0%.

• Gross margin expanded to 46.7% (+2.1 pp YoY), driven by pricing, cost discipline, and premium product strategies.

• Digital commerce and premium product strategies contributed to margin and revenue growth.

Financial highlights

• Gross profit increased 9.6% to R$263.5 million; gross margin improved by 2.1 percentage points to 46.7%.

• Recurring EBIT rose 6.9% to R$96.5 million, with a margin of 17.1%.

• Recurring net profit reached R$159.8 million (+8.2% YoY); recurring net margin improved to 28.3% (+0.9 pp).

• Operating cash generation was R$327.5 million; net cash position increased to R$1.9 billion (+24%).

• Proposed dividend of R$57.5 million, or R$0.0638 per share, to be paid May 29, 2025.

Outlook and guidance

• Management expects continued macroeconomic and geopolitical uncertainty, focusing on profitability, operational discipline, and international expansion.

• Inventory normalization in March is expected to drive new orders in Q2 and benefit domestic restocking.

• U.S. tariffs on Chinese footwear may benefit exports; no material impact expected in Brazil.

• Continued investment in brand positioning, digital integration, and sustainability initiatives.