After a difficult 2018, there has been no sign of respite for Grendene, which posted disappointing results for the first quarter. Its overall shipments out of Brazil declined by 37.0 percent from the year-ago quarter in terms volume to 6.9 million pairs, while 21.6 million pairs were sold in Brazil, a decline of 26.6 percent.

The volume figures for the quarter were the lowest for the company in any first quarter since the stock was floated in 2004. The management said the weak performance was solely due to falling consumption trends and admitted that Grendene is likely to have lost market share, in both the domestic and the external markets.

Sales declined across all the group's brands, models and geographic locations. The company noted that the export market was difficult due to import barriers, a low level of economic activity in Latin America, the trade war between the U.S. and China and the economic slowdown in various important markets such as the U.S., Europe and China.

Another factor is that, to improve efficiency, the company produced and shipped orders in December 2018 that would have been normally delivered in January if the demand had been stronger at home and abroad.

Overall, the parent company of Ipanema, Melissa, Rider and Grendha reported a sales decline of 22.4 percent from the year-ago quarter to 515.3 million Brazilian reais (€116.9m-$130.8m). Domestic revenues dropped by 22.2 percent to R$ 393.5 million (€89.2m-$99.9m), while export revenues fell by 22.7 percent to R$ 121.8 million (€27.6m-$30.9m).

The group's gross margin tumbled by 6.8 percentage points to 40.7 percent, while the Ebitda margin dropped by 13.1 percentage points to 11.9 percent. The group's net income was down by 51.0 percent to R$ 76.5 million (€17.3m-$19.4m).

Moving forward, the management said it does expect to recover lost volumes this year, but the results will likely be lower than in 2018. The focus will be on preserving margins and making adjustments to the portfolio to obtain better results.