Companies

Sales decline at Geox

May 30, 2024 Italy

The Italy-based group has reported a sales decrease of 13.5% in the first quarter of the year, as compared to the same period of 2023, mainly due to the performance of the wholesale channel in all regions

“The first quarter of 2024 has proven to be extremely challenging and complex as highlighted by numerous market indicators already emerged towards the end of last year. Sales for the first three months of 2024 experienced a decline of 13.5% compared to the same period last year, which, on the opposite, had been characterized by very positive performance. This decrease is primarily attributable to the Wholesale channel and is largely due to difficulties that several operators have been facing in many of our reference markets”, commented Geox’s Chief Executive Officer Enrico Mistron.

In the first quarter of 2024, the company’s consolidated sales totalled 193.6 million euros, reflecting a decrease of 13.5% (or 11.7% at constant exchange rates), on a comparable basis to the same period of last year.

Distribution Channel

The wholesale channel contributed 106.8 million euros to the group’s first quarter total sales, a decrease of 21.6% (or 19.7% at constant exchange rates), as compared to the same period of the previous year. As a result, this channel accounted for 55.2% of Geox’s total sales.

On a comparable basis to the first quarter of 2023, sales from the franchising channel decreased by 21.4% to 16.2 million euros in the period, due to the reduction in the number of stores, representing 8.4% of the Group’s total sales.

First quarter sales from the physical and digital directly operated stores (DOS) reached 70.6 million euros, increasing by 5.4% (or 6.9% at constant exchange rates), as compared to the same quarter of 2023. This result was driven by a 41.9% year-over-year growth in the digital channel in contrast with a 2.6% year-over-year decline in bricks and mortar. In total, the DOS channel accounted for 36.4% of Geox’s total sales.

Region

In the first quarter of the current financial year, Geox’s sales in Italy totalled 50 million euros, down by 13.2% on the same period of 2023. In the rest of Europe, the company’s sales totalled 84.1 million euros, down by 10.3% on the same period last year, mainly due to the negative performance in the DACH region (Germany, Austria, and Switzerland).

The group recorded a first quarter sales decline of 20.8% (or 20.0% at constant exchange rates) in North America to 6.0 million euros, on a comparable basis to a similar period of the previous year, “primarily influenced by the negative results of the Wholesale channel”.

In the other countries’ region, Geox’s revenue reached 48.5 million euros, a decrease of 17.9% (or 10.7% at constant exchange rates), as compared to the first quarter of the prior year, “consistent with the trends observed in the previous quarter due to geopolitical tensions and the outbreak of the Israeli-Palestinian conflict”.

Product Category

The Italy-based group also reported that, in the first three months of the year, footwear sales amounted to 174.1 million euros, down by 14% (or 12.5% at constant exchange rates) year-over-year, representing 89.9% of total sales. Apparel sales were also down by 8.5% (or 3.6% at constant exchange rates) year-over-year to 19.5 million euros.

Image Credits: geox.com

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