Consolidated net sales increase for Geox

Worldwide
Published:  24 November, 2016

Italian shoe and clothing brand Geox has reported consolidated revenues for the first nine months of 2016, with the UK, Russia and eastern European countries as the main drivers, recording double-digit growth in the period.

Consolidated net sales in the first nine months of 2016 increased 4.3% to €739.3 million at current exchange rates. Footwear sales accounted for about 90% of total sales in the period at €668.9 million, +4.6% compared the same period in 2015. Clothing sales represented 10% of total consolidated sales, amounting to €70.4 million, against €69.3 million a year earlier (+1.6%).

Revenues generated in Italy represented 31% of the Group's total revenues (34% in the first nine months of 2015) amounted to €231.2 million, against €238.1 million in the same period last year. The Group attributes the result to the planned rationalisation of a number of mono-brand stores, which was offset by the positive performance of the wholesale channel, +3.7% in the period.

Sales in Europe, which accounted for 44% of sales in the period, increased 6.3% at current exchange rates to €322.8 million against €303.5 million in the corresponding period of 2015. As for North America, sales were €46.8 million, +1.6% (+5.2% at constant exchange rates). Sales in Other Countries are reported to have increased 14.4%.

Revenues generated by directly-operated stores, DOS, represented 37% of Group revenues, recording a slight reduction at €273.8 million (-0.4% at constant exchange rates). Sales of the franchising channel decreased 1.5%, accounting for 16% of Group revenues, at €119.7 million, while wholesale stores represented 47% of the total revenue (against 44% in the first nine months of 2015) at €345.8 million, +11.3% at current exchange rates.

As of September 30, 2016, the overall number of Geox Shops was 1,148 of which 452 DOS. During the nine months of 2016, 68 new Geox Shops were opened and 81 have been closed, in line with the company’s rationalisation plan of the mono-brand network.

“Geox has closed the first nine months of 2016 with a 4.3% increase in turnover, thanks to the excellent performance of the wholesale channel, up 11.3%, and online sales, which grew by more than 30%”, said Mario Moretti Polegato, Chairman and founder of Geox.

The Italian brand has announced its order backlog for the 2017 Spring/Summer season is up 9%, driven by excellent performance across all main geographic areas.