Overview
- The company posted an inflation-adjusted net loss of ARS 1,872 million in the first quarter, equal to 3.2% of sales and breaking a four-year run of profits.
- Unit sales fell 13% to 547,000 pairs, with sharper drops in wholesale at 23% and online at 35%.
- Revenue fell 26% in real terms to ARS 59,000 million after the retailer cut prices across channels to keep volumes moving during a weak demand period.
- Financing costs rose to 18.6% of revenue from 6.7% last year due to working-capital borrowing and the costs of offering purchases in installments.
- Grimoldi leans on its direct-to-consumer model, which supplied 68% of peso revenue, and plans new Vans and The North Face stores and a Mango launch in the fourth quarter as it forecasts a second-half pickup.