The Italian shoe supplier Geox SpA had to pay tribute to the adverse conditions in the 2023 financial year.
According to preliminary figures, annual sales fell by 2.2 percent to 719.6 million euros last year, the company announced on Thursday. Adjusted for exchange rate changes, revenues were therefore slightly above the previous year’s level (+0.3 percent).
Management justified the meager figures with the “extremely complex macroeconomic environment” and “unusual weather events in May and September”. In addition, the number of brand stores has been deliberately reduced as part of the current business strategy, which is aimed at increasing profitability.
Not least due to store closures, total revenue in Geox’s own stores and those managed by franchise partners fell by 5.0 percent to 347.7 million euros. In the wholesale business, annual sales amounted to 371.8 million euros, which corresponded to slight growth compared to 2022 (+0.6 percent).
Sales developed differently in the individual market regions: In Italy they grew by 3.1 percent to 200.8 million euros, in the other European markets they fell by 7.1 percent to 304, not least due to “negative results” in Germany. 6 million euros back. In America, revenue was 27.2 million euros, 10.1 percent below the previous year’s level. In the remaining global markets, Geox achieved a sales increase of 2.4 percent to 187.0 million euros.
Given the persistently difficult market conditions, management does not expect any significant progress for the current 2024 financial year. Sales are expected to be roughly at the level of 2023, the company explained.