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Footwear exports totaled USD 166.7 million in the two first months of the year

Data prepared by the Brazilian Footwear Industries Association (Abicalçados) indicates that 23 million pairs were shipped in the first two months of the year. They generated USD 166.7 million, decreases both in volume (-10.7%) and in revenues (-8.5%) in relation to the same period last year. Considering the month of February alone, 10.6 million pairs were shipped abroad for USD 75.2 million, a 3.3% decrease in pairs and a 10% decrease in revenues in relation to the second month of 2019.

Abicalçados' executive president, Haroldo Ferreira, highlights that the international deceleration, driven especially by the United States, had a negative influence on performance. "The decrease in shipments to the United States was very important, especially in leather shoes," he says, stressing that the contribution of the decreased shipments to the United States during the period was 6.3% (of the total decrease of 8.5%).  "Almost everything we lost was due to the United States. In addition to the economic problem in that country, whose footwear sales decreased by almost 2% in the quarter – which generally inhibits imports –, there is the general impact of coronavirus, especially in Asia and Europe," Ferreira says. He also adds that the basis in 2019 was too high due to the trade war against China.

According to Ferreira, the good news is that profitability continues to grow in reais with the current exchange rate. "In reais, exports grew by 4.9% in February and by 3.8% in the quarter," the leader says.

Destinations
The main destination of Brazilian shoes abroad in the two-month period was the United States, to where 1.98 million pairs were shipped, generating USD 33.36 million, 32.5% and 11.6% decreases, respectively, compared to the same period in 2019.

The second destination of the two months was Argentina. With a weak basis in 2019, the Argentines bought 1.3 million Brazilian pairs, which totaled USD 13.9 million, 46.2% and 30.4%, respectively, compared to last year.

The third destination during the period was France, to where 1.76 million pairs were shipped for USD 12.46 million, decreases both in volume (-35.6%) and in revenues (-13%) in relation to the same period in 2019.

States
The main exporter of Brazilian shoes in the two months was the state of Rio Grande do Sul. Throughout the period, the state shipped 5 million pairs for USD 70.8 million, a 4.4% increase in volume and a 4.9% decrease in revenues compared to the same period last year.

The second largest exporter during the period was the state of Ceará, from where 9.7 million pairs were shipped for USD 52.5 million, decreases both in volume (-15.4%) and in revenues (-15.9%) in relation to the corresponding period last year.

São Paulo ranked third, with a 28.1% increase in volume and a 3.7% increase in revenues in relation to the first two months last year. The figures were 1.2 million pairs and USD 14 million.

Imports
The appreciated dollar also had an impact on footwear imports. During the two months, 5.3 million pairs came into Brazil, for which USD 69.35 million were paid, 15.8% and 0.8% decreases, respectively, compared to the same period in 2019. Considering February alone, 2.5 million pairs were imported for USD 28 million, 28.6% and 7.5% decreases, respectively, in comparison with the same period last year.

The main origins of imports during the two months were Vietnam (2.35 million pairs and USD 39.9 million, 10.7% and 15.9% increases, respectively, compared to the same period last year); Indonesia (604 thousand pairs and USD 10 million, 46% and 38% decreases, respectively); and China (1.8 million and USD 9.4 million, a 26% decrease in volume and a 15.8% increase in revenues).

In footwear parts – uppers, soles, heels, insoles etc. – imports totaled US$ 4.9 million, 25.3% less than in the first two months last year. The main origins were China, Paraguay, and Vietnam.