Lower Geox sales in first quarter

Worldwide
Published:  24 May, 2019

The Italian brand of classic and casual footwear has recorded €260.9 million in sales in the first quarter of 2019, down 1.3% at current exchange rates and -1.6% at constant rates.

Geox posted a 1.9% decrease in sales in the wholesale channel for the first quarter, while like-for-like sales in directly-operated stores were up 3.4%, supported by the e-commerce channel (+25%), according to the manufacturer. A decrease in sales in the franchising channel (-12.9%) is said to have been affected by the store network optimisation over the last quarters (network effect of approximately -10%), “the effects of which shall diminish over the course of the year”, said Geox.

Sales in its home market Italy, which represents 31% of Group revenues, were down 4% in the quarter, and revenues in Europe, representing 43% of Group revenues amounted to €112.7 million, against €113.9 million in the first quarter of 2018 (-1%). Revenue in North America totalled €10.7 million, which is €1.1 million lower than in the same quarter of 2018 (-9.8%). A 3.8% increase in sales was recorded in the ‘Rest of the World’ compared with the first quarter of 2018 (+3.4%), with double-digit growth in like-for-like sales for directly-operated stores and in the wholesale channel in Eastern Europe.

In the first quarter, footwear sales represented 91% of consolidated sales, totalling €236.5 million (-1.4%), while apparel sales represented 9% of consolidated sales, amounting to €24.4 million, compared with €24.6 million in the first quarter of 2018 (-0.6%).

Outlook

Matteo Mascazzini, CEO, Geox, said the Company will be expanding its digital and social media campaign with influencers (launched in Italy at the end of 2018), firstly in main European markets and followed by Asia towards the end of the year. “When faced with continuing difficult market conditions and decidedly important challenges, it becomes even more crucial to pursue, with determination, the objectives set by the 2019-2021 Strategic Business Plan”, said Mascazzini.

Geox’s strategic plans include insourcing of the e-commerce channel in North America by the end of June 2019 and a gradual roll-out of the main omnichannel services (click and collect, reserve in store) which are currently being piloted in a number of stores in Italy.