São Paulo – Brazilian footwear manufacturer Grendene saw export volume go up 18.8% year-on-year in Q3, it reported this Friday (30). It shipped abroad 9.1 pairs of shoes from July to September, up from 7.7 million a year ago. Export revenue slid 4.5% to BRL 117.6 million.
In disclosing results during an investor conference, Investor Relations director Alceu Albuquerque celebrated the results. “We had the best third quarter in Grendene’s history in gross revenue terms, at BRL 772.8 million, and the best third quarter in pairs of shoes shipped, at 53 million,” he said.
Albuquerque said there has been a widespread, faster than expected rebound, primarily due to the easing of shelter-in-place orders. Factors included the reopening of brick-and-mortar stores, emergency aid in Brazil, the resumption of manufacturing – which had been partly halted in Q2 – and shopper acceptance of the spring-summer collection. The pickup in sales was driven by the domestic market.
The director believes the recovery is also a consequence of measures taken at the height of the crisis, such as client payment extensions and instalment conversions, and the reduction of work hours and wages for all staff – including the board of managers – to avoid dismissals. “Those decisions enabled us to lay the foundation for a faster return to regular operating conditions, and to position ourselves to capture opportunities amid this scenario of rapid recovery.”
Grendene posted BRL 772.8 million in gross revenues during Q3, up 9.5% year-on-year. sales volume was up 22.6% to 53 million pairs. This means gross revenue per pair of shoe sold dropped. According to Albuquerque, sales increased the most within Latin America, which consumes more basic products, and fire sale campaigns were done with distributors in some parts of the world to offload inventory, which had piled up since the pandemic began.
Although he said the outlook seems to be improving faster than expected, the Investor Relations director said that ultimately, the impact of Covid-19 remains uncertain. “We have showed resilience in the face of adversity, and we believe we are coming out of the pandemic stronger as a company. We are proud of our staff and our recent performance, even though we’re aware of the numerous uncertainties that remain,” he said. The outlook for Q4 is good, and the company has hired 3,000 temporary workers, Albuquerque said.
Grendene makes brands that are famous at the local and global level, including Ipanema, Melissa, Rider, Grendh, Pega Forte, and Grendene Kids. Last September, it announced that its Azaleia brand had been licensed for manufacturing and sale in Brazil and abroad, with the exception of Peru, Chile and Colombia. Grendene is one of the biggest footwear manufacturers in the world.
Translated by Gabriel Pomerancblum