Geox sees sales stabilise in 2023

Geox in its preliminary results statement reported 2023 sales of 720 million euros, down 2.2 percent or up 0.3 percent at constant exchange rates, mainly driven by negative DOS performance partially offset by multi brand channel.

Fourth quarter results were 17.3 percent below previous year at current exchange, with sales reaching 138 million euros.

The company also announced the appointment of Geox CEO Livio Libralesso as omnichannel general manager, with responsibility for the group's business in omni-channel and customer-centric perspective. Prior to joining Geox in 2001, he was an auditor and held management positions in multinational companies such as Safilo and Benetton.

Commenting on the trading update, Geox said in a statement: “The substantial stability in comparison to the previous year was achieved in a complex macroeconomic environment characterised by strong geopolitical tensions, high interest rates, and inflation, all of which induced strong consumer uncertainty and, as a result, significant prudence in consumption.”

Geox’s wholesale channel witnesses growth

The company’s wholesale sales amounted to 371.8 million euros, up 0.6 percent at current exchange and 3.4 percent at constant exchange rates.

Franchising channel sales amounted to 60.2 million euros, showing a 5.3 percent decrease in respect to 2022. The total number of franchised stores decreased from 294 stores to 280 stores as of December 2023.

Directly-operated stores (DOS) sales amounted to 287.5 million euros, down 4.9 percent at current exchange and 2.7 percent at constant exchange rates. Comparable sales (LFL) at the end of the period increased by 3.7 percent.

Online channel delivered comparable sales growth of about 3.7 percent. The number of DOS decreased from 315 to 255 at the end of December 2023.

Geox performance across core markets

Sales generated in Italy amounted to 200.8 million euros, up 3.1 percent driven by a 17.2 percent increase in the wholesale channel partly mitigated by 9.7 percent decline of the franchising channel and 2 percent decline in the direct store network.

Sales generated in Europe amounted to 304.6 million euros, a decrease of 7.1 percent driven by the negative performance achieved in the German market, specifically in the multi brand channel. DOS in Europe reported comparable sales up by 5.5 percent. Franchising channel with 1.6 percent rise, was also slightly positive in terms of LFL performance.

North America reported sales of 27.2 million euros, down by 10.1 percent or 5.4 percent at constant exchange rates. The 2.9 percent increase of the multi brand channel was more than offset by the 17.8 percent decline by the direct store network due to a lower number of stores.

Other countries reported sales growth of 2.4 percent or 12.5 percent at constant exchange rates driven by an 8.6 percent increase recorded by the multi brand channel and a 6.4 percent growth by the franchising network. Positive performance was delivered in the MEA region, particularly due to the signing of new distribution agreements aimed at expanding the sales network.

Footwear sales amounting to 646.9 million euros, were down 2.4 percent or 0.3 percent at constant exchange rates compared to 2022. Apparel sales amounting to 72.7 million euros, increased 0.3 percent at current exchange and 5.7 percent at constant exchange rates.

At December 31, 2023, the total number of Geox Shops was 655 of which 255 were DOS. During 2023, 41 new Geox Shops were opened and 103 were closed, in line with the planned optimization of the store network in the more mature markets and an expansion in countries where the group’s presence is still limited.