Companies

Geox reports moderate growth

Nov 17, 2023 Italy

The Italian-based brand recorded a positive performance in the year to date, but emphasised that the sales growth was moderate as compared to the last two years

“The year 2023 looks like a year of stabilization and moderate growth after the strong increases recorded in the previous two years. Sales realized in the first nine months, delivered indeed an increase of +2.3% at current exchange rates, (+4.1% at constant exchange rates) compared to the previous year. This result gains more value considering that it was achieved in a complex macroeconomic situation characterized by strong geopolitical tensions, high interest and inflation rates that induce strong concerns and cautious consumption”, commented Mario Moretti Polegato.

In the first nine months of fiscal 2023, the company’s consolidated sales reached 581.9 million euros, reflecting an increase of 2.3% (or 4.1% at constant exchange rates), on a comparable basis to the same period of last year.

Channel

At the end of September, sales in the wholesale channel generated 324.4 million euros, up by 8.2% at current exchange rates and by 10.2% at constant exchange rates, as compared to the same months of 2022. This channel accounted for 55.7% of the group sales.

In the first nine months of the year, the franchising channel also contributed 48.7 euros to the total revenue, increasing by 0.8%, on a comparable basis to the same period of the previous year. Meanwhile, directly-operated stores (DOS) sales amounted to 208.9 million euros, down by 5.5% at current exchange rates and by 3.6% at constant exchange rates year-over-year, representing 35.9% of the group’s sales.

Region

In Italy, Geox’s sales grew by 6.0% in the first three quarters of the year, totalling 158.9 million euros, as compared to a similar period of 2022, mainly due to the growth in the wholesale channel (up by 22% year-over-year). These accounted for 27.3% of total sales.

The company’s sales in Europe generated 246.9 million euros in this period, reflecting a decrease of 5.2%, on a comparable basis to a similar period of the prior year, and representing 42.4% of total sales. This was attributed essentially to the “negative performance achieved in the German market and specifically in the Multibrand channel”.

At the same time, the North America region recorded a sales decline of 8.5% (or 3.8% at constant exchange rates) year-over-year to 21.3 million euros, with the lower result achieved by direct store network (down by 16.8%) impacting the performance (fewer stores).

In the year-to-date, the other countries region sales rose by 14.3% (or by 22.3% at constant exchange rates), reaching 154.8 million euros, as compared to the same period in 2022; these accounted for 26.6% of total sales. Geox highlighted the performance of the Asia Pacific region to this result, as sales in this region increased by 12.4% in the multichannel and by 9% in the direct store network.