Mario Moretti Polegato, Chairman and founder of Geox, commented: “2017 performance reflects the first concrete results of our new strategy focused on boosting profitability and achieving a healthy and profitable business. Geox has closed 2017 with a substantially stable turnover compared with the previous year, thanks to the growth of the wholesale channel and improved like-for-like sales in directly operated stores, which recorded a growth of 2% in the second half of the year, exceeding expectations. This positive performance has almost completely compensated for the planned rationalization of the mono-brand store network that was carried out during the year. Russia, Eastern Europe and China continue to record double-digit growth, as does the e-commerce channel (+26%).
Measures to improve operating efficiency continued, with the expected growth in industrial margin, together with tight cost control, leading to an increase in operating margins".

2017 consolidated net sales amounted to 884.5 million euros, substantially in line with last year (-1.8% at current forex, -1.7% at constant forex) with the growth of the wholesale channel partially compensating for the planned optimization of the mono-brand store network. 

Wholesale revenue, representing 45% of total group revenue (44% in 2016) reached 401.0 million euros (+1.4% at current forex, +1.6% at constant forex). This trend is due to a substantially stable performance in Italy and in the rest of Europe, double-digit growth recorded in Russia, Eastern Europe, China and by the online channel.

Sales of the DOS channel, which represent 41% of total group revenue, declined to 362.1 million euros (-2.3% at current forex, -2.1% at constant forex), mainly driven by  a planned network optimization in Europe and expansion in more responsive markets such as Russia, Eastern Europe and China (overall -16 net closures).

Sales of the franchising channel, which account for 14% of the group revenue, amounted to 121.4 million euros, with a decrease of 9.8% (-10.3% at constant forex). This trend reflects the dynamics reported above and is also due to the store network rationalization plan (-62 net closures) and the slight decline in comparable store sales.
 
As of the 31^st of December, the overall number of Geox stores was 1 095 of which 439 DOS.  During the year, 70 new Geox shops were opened and 136 were closed in line with the rationalization plan of the DOS network in more mature markets and the expansion in countries where the group’s presence is still limited but developing well. Sales in Italy, which accounted for 29% of sales (30% in 2016) amounted to 257.5 million euros (270.1 million euros in 2016). Sales in Europe, which accounted for 43% of group sales, amounted to 382.9 million euros (396.6 million euros in 2016). North American sales amounted to 56.9 million euros, down by 6.2% (-5.6% at constant forex). Sales in other countries increased by 8.0% compared to 2016 (+7.9% at constant exchange rates).

Footwear sales represented 90% of consolidated sales amounting to 796.7 million euros, -2.3% (-2.1% at constant forex). Apparel sales accounted for 10% of consolidates sales at 87.9 million euros, compared to 85.2 million euros (+3.1% at current forex, + 3.0% at constant forex).