Geox
Italy's Geox sees double-digit revenue growth in Q1 2022
Italian footwear, apparel and accessories manufacturer Geox sees Q1 2022 results as positive. Consolidated revenue of Geox was 184,4 million euros, an increase of 24,3% (24,2% excluding currency fluctuations) compared to the same period last year, writes Worldfootwer.com.
“First quarter 2022 results, albeit under extremely challenging conditions, show a significant improvement over last year with double-digit revenue growth across all distribution channels. Since the reopening of stores, we have seen a gradual and significant improvement in the operation of our network, which returned to full operation from the end of June 2021. Thus, the entire first half of 2022 somewhat outperforms in comparison. However, the improvement is significant and continued in both April and May, resulting in an overall increase of over 32% (…),” the company said in a statement.
The multi-brand store channel revenue, which accounted for 55,5% of total revenue, grew by 11,5% (up 11,8% excluding currency fluctuations) in the first three months of this year, reaching 102,6 million compared to revenue in 91,9 million euros for the same period a year earlier. Also in the reporting period, compared to the same period last year, sales of Geox in the franchise network increased by 49,3%, to 15,6 million euros, which is 8,5% of the group's total revenue.
In the first quarter of the current financial year, revenue from direct operated stores (DOS), which accounted for 35,9% of total revenue, increased by 43,9% (up 42,7% excluding currency fluctuations) to 66,1 million euros. Like-for-like DOS sales rose 54%, reflecting a 90% increase in physical stores and a 13% decline in the online channel (digital sales are stabilizing after booming during the pandemic).
Sales by region
During the first quarter of 2022, Geox's sales in Italy, which accounted for 26,3% of total sales, grew by 62,1% to reach €48,5 million, up from €29,9 million in the same quarter. previous year. Revenue generated in Europe (Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland), which accounted for 46,1% of total revenue, amounted to EUR 85,0 million compared to EUR 70,1 million for the same period in 2021.
The North American region reported revenue of €5,1 million as of March 31, up 9,6% (up 2,0% at constant exchange rates) compared to the same period last year.
In the first quarter of the current fiscal year, the Other Countries region posted a revenue growth of 4,9% (6,5% excluding currency fluctuations) compared to the same period of the previous year, amounting to 45,84 million euros. In particular, sales in the Asia-Pacific region decreased by 12,5%, mainly as a result of a reorganization in Japan, while sales in China increased by 8%. Sales in Eastern Europe grew by 8,7%.
Sales by product category
In the three months to 31 March, footwear sales, which accounted for 88% of consolidated revenue, generated €162,4 million, an increase of 20,2% (19,8% excluding currency fluctuations) compared to the first quarter of 2021. During this period, clothing sales reached 22 million euros, an increase of 66,1% (up 70,6% excluding currency fluctuations), and contributed 12% of total revenue.
Geox's management emphasizes that despite anticipating "a year of strong turnover growth", "there is still some pressure on margins caused by the international geopolitical situation, high energy costs and the impact of Covid-19 on the supply chain in terms of both cost and delivery time. mainly because of the new lockdown in China.” The company also assumes that the situation will continue until the end of the year, perhaps with some softening. However, Geox still expects double-digit growth in 2022, forecasting sales of over 700 million euros.
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Italian footwear, apparel and accessories manufacturer Geox sees Q1 2022 results as positive. Geox's consolidated revenue was €184,4 million, up 24,3%…
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