According to Geox, an improved performance was recorded in the fourth quarter, with sales up +2% supported by comparable sales in directly operated stores (+3.4%) and driven by the e-commerce channel (+22%). The Company’s adjusted Ebitda was €48.2 million in the year, compared with €74 million in 2017. The Italian footwear manufacturer says the unusual weather conditions across its main regions affected the sales in 2018, with March exceptionally cold, while September and the first half of October were exceptionally warm. Nevertheless, the Group’s balance sheet is said to show a positive net financial position of €2.3 million, improving from a negative -€5.4 million as of December 31, 2017.

Sales in Europe, which represents 42.9% of Group revenues, amounted to €354.7 million, compared with €382.9 million in 2017 (-7.4%), with sales in home market Italy (29% of Group revenues) totalling €239.8 million (-6.9%). Revenue in North America was €50.5 million in 2018 (-11.2%) and the Rest of the World recorded a -2.7% decline in turnover compared with 2017. Footwear sales represented approximately 90% of consolidated sales, amounting to €744 million, down -6.6%, and apparel accounted for 10%, totalling €83.2 million (-5.3%).

Mario Moretti Polegato, Chairman and Founder, Geox said that in 2018, the footwear industry “faced yet another year of incredibly important challenges” and that Geox launched an in-depth strategic, organisational and distribution review process in its 2019-21 Strategic Business Plan. The Group says it aims “to make the relevance and desirability of the Geox brand to significantly grow again” by expanding its target audience to include new types of customers “who, as of today, are not yet attracted by our message”.