Geox recorded a 2.6% drop in sales in 2019, at current exchange rates, to €805.9 million. The decline was attributed to the reduction of the store network in the wholesale and franchising channel, aimed at mitigating the business risk. According to the company, the trend improved in the fourth quarter of 2019, with sales up 4.9% compared with the same quarter in 2018. Adjusted net income was negative by €10.6 million compared with €2 million in 2018.

Sales generated in Italy, representing 28.3% of Group revenues (29% in 2018), amounted to €228.5 million in 2019, compared with €239.8 million in 2018 (-4.7%). In Europe, 42.7% of Group revenues, sales declined 2.9% to €344.3 million, while North America recorded a decrease of 8.6% to €46.2 million. A 2.6% increase in sales was recorded in the Rest of the World compared with 2018. At €720.8 million (-3.1%), footwear sales represented 89.4% of consolidated sales, while apparel sales represented 10.6% of consolidated sales and amounted to €85.1 million (+2.3% at current forex).

As consumers increasingly buy online, leading to a drop in footfall in physical stores, Geox said its Board of Directors examined and approved a rationalisation plan in January for the Group’s network of stores (DOS); 80 stores worldwide, including direct stores and corners, that no longer comply with the Group’s strategy in terms of significance and profitability are to be terminated. During the same meeting, the Board approved a mutual separation agreement between Geox and Matteo Carlo Maria Mascazzini, who is to leave his role as employee and Director, and Livio Libralesso was appointed as Group CEO for the 2020-2021 two-year period.

Prior to the Italian government’s instructions for a nationwide shutdown, except for food stores, the Italian footwear brand had already temporarily closed all its 150 directly operated stores (DOS) in Italy. As a company, we feel extremely responsible towards all co-workers and customers who visit our stores, and their families. We have therefore decided to contribute to the collective effort being made in Italy by temporarily closing all of our stores in the country. We are solid and, once we’ve overcome this difficult time, I am absolutely confident about the future for this sector, for Italy and for Geox”, said Mario Moretti Polegato, Chairman and founder, Geox.