Companies

Geox full year sales decline

Mar 12, 2025 Italy

The Italy-based footwear company, which is focused on a five-year business plan to increase sales to 850 million euros by 2029, reported a 7.8% year-on-year decline in full year sales

“2024 proved to be a challenging year for the Group, marked by persistently difficult market conditions that affected both business performance and sales volumes. Sales decline of approximately Euro 56 million (-7.8%) compared to the previous year was partially offset by disciplined cost and investment management, leading to significant operational savings of approximately Euro 20 million”, commented Chief Executive Officer Enrico Mistron.

Fiscal 2024 Sales

Geox reported full year sales of 663.8 million euros, down by 7.8% on a comparable basis to fiscal 2023. In the fourth quarter alone, sales slightly increased by 0.5% year-on-year at current exchange rates to 138 million euros.

Sales decreased in all segments except for Directly Operated Store Digital, where they increased by 20.1% year-on-year to 61.6 million euros. Wholesale sales decreased by 12.5% year-on-year to 325.5 million euros, Franchising by 17.3% year-on-year to 49.8 million euros and Directly Operated Store Brick & Mortar by 3.9% year-on-year to 226.9 million euros.

From a geographical perspective, Geox’s sales in 2024 decreased by 6.6% year-on-year to 187.5 million euros in Italy, by 1.4% year-on-year to 300.3 million euros in Europe (Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland), by 11.9% year-on-year to 23.9 million euros in North America and by 18.7% year-on-year to 151.9 million euros in Other Countries.

Fiscal 2024 Operating Performance

The decline in full year net sales led to a reduction in adjusted gross profit of approximately 27 million euros to 337.6 million euros.

“In response to these challenges, management implemented an efficiency plan aimed at containing and reducing the operating costs structure, generating significant savings of approximately 20 million euros compared to 2023”, said the company.

As a result of this plan, the company’s adjusted EBITDA decreased to 26.2 million Euros in the past year from 37.0 million Euros in the previous year, and the decrease in adjusted EBIT was limited to 7 million Euros compared to the previous year, resulting in an adjusted EBIT of 8.8 million Euros.

Geox reported a full year adjusted net loss of 17.3 million euros, as compared to a net loss of 6.5 million euros in 2023. This result includes the impact of extraordinary costs of 13 million euros related to the company’s ongoing strategic transformation process.

“The Group incurred extraordinary, non-recurring costs of approximately 13 million euros, related to business transformation and the optimization of the distribution network, the closure of certain subsidiaries (USA and China), and internal organizational restructuring”, added Mistron, highlighting that the company has also entered a new partnership agreement with a relevant international player in the Chinese market.

Outlook

In a challenging macroeconomic environment, for 2025, Geox's Direct-to-Consumer (DTC) business will focus on the expansion of digital platforms, while the physical store network is expected to remain largely unchanged, and the strategy to improve the quality of the multi-brand distribution network will continue.

Taking this into account, the company expects a slight (low single-digit) decline in sales in 2025, as compared to 2024 and an adjusted EBIT margin decline of approximately 80 basis points year-on-year.

Image Credits: marcacorona.it

Italy Companies Footwear Geox Results Year Results