Geox manages to increase sales in a 'complex macroeconomic situation'

Italian footwear player Geox sales for the first nine months of 2023 amounted to 582 million euros, up 2.3 percent or up 4.1 percent at constant exchange due to the positive performance of the multibrand channel partially mitigated by the negative performance of the DOS channel.

The company said in a statement that the third quarter results were in line with the previous year with sales reaching 228.4 million euros, up 4.1 percent at constant exchange rates.

Commenting on the company’s trading performance, Mario Moretti Polegato, founder and president of Geox said: The year 2023 looks like a year of stabilisation and moderate growth after the strong increases recorded in the previous two years. The result gains more value considering that it was achieved in a complex macroeconomic situation characterised by strong geopolitical tensions, high interest and inflation rates that induce strong concerns and cautious consumption.”

Highlights of Geox’s nine month results

The company’s wholesales, which accounted for 55.7 percent of group sales, amounted to 324.4 million euros, up 8.2 percent at current exchange and up 10.2 percent at constant exchange rates benefitting from a positive order collection for the SS23 and FW23.

The company added that the franchising channel sales, equal to 8.4 percent of group sales, amounted to 48.7 million euros, up 0.8 percent with the performance getting affected by a reduction in the number of stores compared to September 2022 and on the other hand benefitting from a favourable timing effect on shipments. The total number of franchised shops decreased from 294 shops in September 2022 to 282 in September 2023.

Directly-operated stores (DOS) sales, which account for 35.9 percent of group sales, amounted to 208.9 million euros, down 5.5 percent at current exchange rates and down 3.6 percent at constant exchange rates. Comparable sales (LFL) rose 1.6 percent with physical shops reporting comparable sales growth of about 2.7 percent, while the online channel showed a decline of 3 percent. However, the growth of the direct online channel was about 50.2 percent compared to 2019.

The number of DOS decreased from 318 shops in September 2022 to 261 in September 2023.

Geox posts positive performance across markets

Sales generated in Italy, which represents 27.3 percent of the group's sales, amounted to 158.9 million euros, up 6 percent driven mainly by the wholesale channel, up 22 percent, partly mitigated by the negative performance of the franchising channel, down 4.6 percent and the direct store network, down 2 percent.

Sales generated in Europe, equal to 42.4 percent of group sales, amounted to 246.9 million euros, a decrease of 5.2 percent driven by the negative performance achieved in the German market and the multibrand channel. DOS in Europe reported comparable sales up 1.8 percent and the performance of the franchising channel was slightly positive by 1 percent.

North America reported sales of 21.3 million euros, down 8.5 percent or down 3.8 percent at constant exchange rates. Geox said that the positive results of the multibrand channel, up 4.4 percent, were more than offset by the lower result achieved by the direct store network, down 16.8 percent due to a lower number of stores.

Other countries reported sales growth of 14.3 percent or 22.3 percent at constant exchange rates. Particularly in the Asia Pacific region, sales were up due to the good performance achieved by both the multibrand channel, up 12.4 percent and the direct store network, up 9 percent. Positive performance was also reported in the "Other Countries" area, up 15.1 percent.

Footwear accounted for 90.4 percent of consolidated sales, amounting to 526.4 million euros, up 1.7 percent or 3.4 percent at constant exchange rates. Apparel accounted for 9.6 percent of consolidated sales, amounting to 55.6 million euros, up 7.8 percent at current exchange and 11.6 percent at constant exchange rates.

Total number of Geox shops was 656 of which 261 DOS at the end of the period under review. During the first nine months of 2023, 30 new Geox Shops were opened and 91 were closed.