"First quarter 2022 results, albeit in an extremely complex environment, show a significant improvement over last year with double-digit revenue growth across all distribution channels. Since the re-opening of stores, we are seeing a progressive and significant improvement in the performance of our network, which has been substantially back in operation since the end of June 2021; the entire first half of 2022 will therefore benefit to some extent from an easier basis of comparison. However, the improvement is significant and continued in both April and May bringing overall growth to more than 32% (…)", said the company.

In the first quarter of 2022, Geox’s consolidated revenue totalled 184.4 million euros, reflecting an increase of 24.3% (24.2% at constant exchange rate), on a comparable basis to the same period last year.

Sales by Distribution Channel

Revenue from multi-brand stores, which represented 55.5% of total revenue, grew by 11.5% (by 11.8% at constant exchange rates) in the first three months of this year, reaching 102.6 million, as compared to revenue of 91.9 million euros in the same quarter of the past year.  In this period, sales from the franchising channel amounted to 15.6 million euros, up by 49.3% as compared to the first quarter of 2021, representing 8.5% of the group’s total revenue.

In the first quarter of the current fiscal year, revenue generated from directly operated stores (DOS), which equalled 35.9% of total revenue, increased by 43.9% (by 42.7% at constant exchange rates), totalling 66.1 million euros. Comparable DOS sales were up by 54%, reflecting a growth of 90% at brick-and-mortar stores and a 13% decline in the online channel (digital sales are stabilizing following a boom during the pandemic period).

Sales by Geographic Region

During the first quarter of 2022, sales in Italy, responsible for 26.3% of total sales, rose by 62.1%, reaching 48.5 million euros, on a comparable basis to 29.9 million euros in the same quarter of the prior year. Revenue generated in Europe*, which accounted for 46.1% of total revenue, amounted to 85.0 million euros, as compared with 70.1 million euros in similar period of 2021.

The North American region reported revenue of 5.1 million euros as of the 31^st of March, up by 9.6% (by 2.0% at constant exchange rates), as compared to the same period last year.

In the first quarter of the current fiscal year, other countries’ region posted a revenue increase of 4.9% (6.5% at constant exchange rates), on a comparable basis to an equal period of the previous year, totalling 45.84 million euros. In particular, sales were down by 12.5% in the Asia Pacific region, mainly due to the result of the reorganization in Japan, and revenue generated by sales in China was up by 8%. Sales in Eastern Europe grew by 8.7%.

Sales by Product Category

In the three months to the 31^st of March, footwear sales, which accounted for 88% of consolidated revenue, generated 162.4 million euros, reflecting an increase of 20.2% (19.8% at constant exchange rates), on a comparable basis to the first quarter of 2021. Apparel sales reached 22 million euros in this period, up by 66.1% (by 70.6% at constant exchange rates), and were responsible for 12% of total revenue.

2022 Outlook

Geox highlighted that despite expecting a "year of strong growth in turnover", "there is still some pressure on margins generated by the international geopolitical situation, the high cost of energy and the impact of Covid-19 on the supply chain in terms of both costs and shipping times, mainly due to the new lockdown in China". The company also assumes that the situation will continue during the rest of the year, perhaps with some mitigation. Nevertheless, it continues to expect double-digit growth for 2022, projecting sales of over 700 million euros.  

*Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland