Brazilian footwear manufacturer Grendene S/A, based in Farroupilha, Rio Grande do Sul, recently reported consolidated gross revenues of $640 million in 2005, an 11% decrease from the $723 million posted in 2004. Domestic sales and exports fell 9% and 22% respectively last year. Net consolidated revenues dropped 11.8% to $506 million. Net profit fell 3% to $92.5 million.

Local sales fell 10% compared with 2004. Grendene lost 2% of its share of the domestic market which is now 19%, however, the company's international market share rose 2% to reach 15% of total Brazilian footwear exports.

"The situation is difficult but we are determined to change it and are working hard to recover our profitability," said Marcus Peixoto, financial and investor relations director.