Geox reports moderate sales growth

The Italian shoe and clothing brand Geox reports moderate sales growth this year. In the first 9 months of 2023, the company's sales increased by 2,3% at current exchange rates (or by 4,1% excluding currency fluctuations) compared to the result for the same period last year and reached 581,9 million euros, writes Worldfootwear.com.

“2023 looks like a year of stabilization and moderate growth after the significant growth recorded in the previous two years,” comments Geox President Mario Moretti Polegato. But given the difficult macroeconomic environment in which the company has to operate, the head of Geox appreciates the result, as geopolitical tensions, high interest rates and inflation rates are causing more cautious consumer behavior.

At the end of September, sales in the wholesale channel amounted to 324,4 million euros, which is 8,2% higher at current rates and 10,2% higher at constant rates compared to the result obtained for the same period in 2022. The wholesale channel accounted for 55,7% of the company's sales.

At the same time, Geox's own retail sales amounted to 208,9 million euros, down 5,5% at current exchange rates and 3,6% excluding currency fluctuations compared to the same period last year. Retail sales account for 35,9% of the company's total sales.

In the brand's native Italy, sales in the first three quarters of the year increased by 6%, amounting to 158,9 million euros, compared to the same period in 2022, mainly due to growth in the wholesale segment (+ 22% compared to the same period last year ), it accounted for 27,3% of total sales.

The company's sales in Europe during the reporting period decreased by 5,2% compared to the same period of the previous year and amounted to 246,9 million euros. The European region accounts for 42,4% of total sales. The decline here is due to “negative performance achieved in the German market and, in particular, in multi-brand retail.”

At the same time, the North America region recorded a decrease in sales by 8,5% (or 3,8% excluding currency fluctuations) compared to the same period last year to 21,3 million euros, with the lowest sales recorded in its own retail ( a decrease of 16,8%), which is explained by a reduction in the number of stores in the branded network.

The rest of the world, which accounted for 26,6% of the company's sales, recorded an increase of 14,3% (or 22,3% excluding currency fluctuations), with sales reaching 154,8 million euros, compared to the same period in 2022 of the year. Geox management noted the brand's success in the Asia-Pacific region, where sales grew by 12,4% in the multi-channel network and by 9% in its own retail.

Footwear accounted for 90,4% of the company's total sales, with footwear sales totaling €2023 million in the first nine months of 526,4, an increase of 1,7% or 3,4% excluding currency fluctuations compared to the same period last year. However, apparel sales totaled $55,6 million, up 7,8% at current exchange rates and 11,6% excluding currency fluctuations compared to the same period last year.