Companies

Geox sales down in the first half

Aug 12, 2024 Italy

In line with the start of the year, Geox has reported a 9.4% decline in first half sales, on a comparable basis to the same period of last year, as the wholesale channel continues to struggle in most of its markets

In the first half of fiscal 2024, the company’s consolidated sales totalled 320.4 million euros, a decrease of 9.4% (or 8.0% at constant exchange rates) on a comparable basis to the same period of last year.

“The first half of 2024, consistent with what we have seen in the first months of the year, has proven extremely challenging due to the persistence of complex market conditions. Sales for the first six months of 2024 show a contraction of 9.4% compared to the first half of the previous year. The consolidation of the positive results achieved by the Direct Digital channel in the second quarter, along with a slight improvement in comparable sales of the Direct B&M channel, partially offset the sales results of the Wholesale channel”, commented the Chief Executive Officer Enrico Mistron.

Distribution Channel

The wholesale channel contributed 156.0 million euros to Geox’s total revenue in the first six months of the year, reflecting a decline of 16.0% at current exchange rates or 14.5% at constant exchange rates, as compared to the same period of the previous year.

“This result is primarily driven by the performance of the SS24, which collected fewer orders compared to the previous year’s SS23 collection”, said the company.

In this period, sales from the franchising channel were down by 15.2% to 23.4 million euros, on a comparable basis to a similar period of the prior year, impacted by the reduction in the number of stores and negative comparable sales.

In the first semester of the year, Geox’s sales from directly operated stores (DOS) reached 141.0 million euros, a slight increase from 140.2 million euros in a similar period of the prior year. While brick-and-mortar sales decreased by 5.4% year-on-year to 110.5 million euros, digital sales increased by 29.9% year-on-year to 30.5 million euros.

Geographical Areas

In the first half of this year, the company’s sales in Italy reached 89.0 million euros, reflecting a decline of 9.9%, as compared to the same period of 2023. In the remaining European markets, sales decreased by 1.7% year-on-year to 146.4 million euros.

Geox’s first half sales in North America decreased by 13.7% (or 13.2% at constant exchange rates) to 11.7 million euros, on a comparable basis to a similar period of the previous year. The ‘Other Countries’ area recorded a sales decrease of 20.6% (or 15.5% at constant exchange rates) year-on-year to 73.3 million euros.

Product Category

In the six months that ended in June, the company’s footwear sales amounted to 291.9 million euros, a decline of 10.1% (or 8.7% at constant exchange rates), as compared to the same period of last year. Meanwhile, Geox’s apparel sales declined slightly to 28.5 million euros from 28.8 million euros in the same period a year ago.

Operating Performance

At the end of June, the company’s EBITDA decreased from 40.2 million euros to 29.1 million euros and EBIT was negative 5.5 million euros (as compared to positive 3.6 million euros in the first half of 2023). In the end, the Italy-based company reported a net loss of 15.4 million euros, as compared to a net loss of 9.6 million euros in the same period last year.

Image Credits: geox.biz

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