Grimoldi stock faces a profitability test after first-half loss
Published on 11/10/2026 at 00:37 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSProfitability remains under pressure
- Grimoldi moved from profit to a net loss in the first half of 2026.
- Operating profit fell sharply while financial costs increased.
- The next financial report will show whether cash-flow measures are becoming a lasting recovery.
Grimoldi moved from profit to loss in the first half of 2026 as weaker real revenue and higher financing costs eroded profitability. An analysis published by Somos Inversores said the Argentine footwear company recorded a net loss of 3.537 billion pesos, compared with a profit of 12.906 billion pesos a year earlier.
Revenue decline tests the business
Revenue fell 24.9 percent in real terms to 126.629 billion pesos, while gross profit declined 26.5 percent to 67.642 billion pesos. Operating profit dropped 65.1 percent to 11.580 billion pesos, reducing the operating margin to 9.1 percent from 19.7 percent in the first half of 2025.
Financial costs rose 64.5 percent to 23.454 billion pesos. The analysis said operating profit covered only about half of those costs, leaving the company exposed to a recovery in consumer demand and to the cost of financing sales made through promotions and installments.
Liquidity improved, but risks remain
Cash and short-term investments increased to 45.942 billion pesos at the end of the first half, while total liabilities fell to 71.078 billion pesos. Inventory declined to 58.323 billion pesos and trade receivables fell to 24.404 billion pesos.
Those changes supported liquidity, but a reduction in working capital is not the same as a recovery in earnings. The next report, covering the period ended September 30, 2026, will be important for assessing revenue trends, operating margins, financing costs and inventory rotation.
Brands support a diversified retail model
Grimoldi combines local manufacturing with the sale of international brands including Hush Puppies, Vans, The North Face, Kickers, Merrell and Caterpillar. The company operates physical stores, franchise locations, e-commerce platforms and wholesale relationships in Argentina, giving it several sales channels but also exposing it to rents, wages, promotions and inventory costs.
Grimoldi company facts
- Business: Footwear manufacturing and retail
- Primary market: Argentina
- First-half 2026 revenue: 126.629 billion Argentine pesos
- First-half 2026 operating profit: 11.580 billion Argentine pesos
- First-half 2026 net result: Loss of 3.537 billion Argentine pesos
Argentine equities remain sensitive to domestic demand, inflation and financing conditions. Investors can follow broader developments in current market reports.
