Improved Geox results for 2021 so far

Italy
Published:  25 November, 2021
Credit: Geox

The Italian footwear and apparel manufacturer has reported its financial results for the first nine months of 2021, showing sales revenue of €463.5 million (US$520 million), +8.9% at constant exchange rates.

The company attributed this result to solid performance of its multi-brand channel and the recovery of direct sales that took hold with the gradual reopening of the mono-brand network starting in the second quarter.

Revenues in Italy represented 24.1% of the total with €111.8 million (US$125 million), up 9.4% from the same period in 2020. This positive result benefited from a lower percentage of stores closed due to lockdowns compared to 2020, while growth was driven primarily by the wholesale channel (+24%).

In Europe, revenues accounted for 45.9% of the total, amounting to €212.8 million (US$239 million), up 9.4% from 2020. Meanwhile, North America reported sales of €19.1 million (US$21 million), +4.2% compared to the same period in 2020.

Other countries reported revenue growth of 15.9% over the nine months of 2020, with varying trends. In particular, in the Asia Pacific area, turnover fell by 6.8%, mainly as a result of the reorganisation in Japan which led to the closure of the branch and the transfer of the business to a distributor with effect from 2022. China reported revenue growth (+6.9%), with direct store like-for-like sales up 19%.

Outlook

Amid an ongoing complicated global situation, Geox estimates that the impact of production issues, transport costs and Covid-19 disruptions amounts to approximately €14 million (US$16 million) of revenue losses.

Despite these difficulties, the group expects double-digit growth in annual revenue for the full financial year, above €600 million (US$673 million), while gross margins are expected to improve by around 300 basis points compared to the end of 2020.

The company commented: “Caution is still the order of the day, however. In fact, if on the one hand the level of infections and the health situation have shown a general improvement in the main Western European countries and in North America, allowing, starting from the second quarter, a progressive reopening of the entire distribution network, on the other hand there has been a recent increase in infections, first in some areas of South-East Asia and then in Eastern Europe, characterised by a low vaccination rate, with the reintroduction of temporary lockdown measures, for example in China, Vietnam and Russia.”