Geox SpA and the group’s financing banks signed yesterday the binding documents related to a financial restructuring, the implementation of which is necessary to carry out the actions envisaged in the company’s new industrial plan 2025-2029. The struggling Italian footwear supplier’s plan was approved by the board of directors on December 19, 2024.
As part of the financial restructuring, it is envisaged that the majority shareholder LIR Srl, which holds around 71 percent of Geox’s share capital, will support the implementation of the new industrial plan with equity capital of up to a maximum of 60 million euros.
The industrial plan is divided into two phases. The first phase, from 2025 to 2026, is entitled “Strategy re-rooting and performance improvement” and focuses on renewing the cornerstones of Geox’s business model. This will be achieved through the implementation of an updated value proposition and greater efficiency of the operational model.
The second phase, from 2027 to 2029, entitled “Acceleration”, will be characterized by a strengthening of the presence in key markets and a renewed impetus for international expansion. The plan envisages achieving sales of over 850 million euros with an operating margin (EBIT) of over seven percent by 2029 and making investments totaling 120 million euros over the entire period. In addition, Geox aims to position itself as a leading brand in the “Everyday Premium Footwear” segment and to strengthen the “Respira” brand identity not only with functional and technological content, but also with emotional content.
The customer group should be rejuvenated
A gradual expansion and rejuvenation of the customer base is also planned, with the focus on the target group of 35 to 50 year olds. At the same time, the existing core target group, namely people aged 50 and over, should be further strengthened.
The financial agreements between Geox and the banks essentially include the redesign of the repayment plans for existing medium and long-term financing at some of the banks. This includes an extension of the respective final due dates by 24 months as well as an adjustment to the repayment plans. In addition, a capital injection totaling 60 million euros is planned, which will be made in two tranches. 30 million euros at the beginning of 2025 and a further 30 million euros in autumn 2026. These funds will be provided by the majority shareholder LIR.
On December 13, 2024, Geox entered into a partnership with an experienced Chinese market player to strengthen the Geox Group’s presence in the People’s Republic of China. This collaboration includes an exclusive distribution agreement for a period of five years, starting with the Spring-Summer 2025 collection.
Geox SpA’s consolidated sales for the first nine months of 2024 amounted to 525.5 million euros, a decrease of 9.7 percent compared to the previous year (-9 percent at constant exchange rates).
This article previously appeared on Fashionunited.it and was created using digital tools translated.
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