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Geox growth slows in 2023

Feb 7, 2024 Italy
Geox growth slows in 2023
The Italian-based footwear group has seen its growth slow from previous years due to a complex macroeconomic environment and unusual weather events in May and September
“Following the significant increases of the previous two years, 2023 appears to be a year of stabilization. Preliminary revenues are down by 2.2% vs the previous year when measured at current exchange rates, while revenues measured at constant exchange rates are up by 0.3%. The substantial stability in comparison to the previous year was achieved in a complex macroeconomic environment characterized by strong geopolitical tensions, high interest rates, and inflation, all of which induced strong consumer uncertainty and, as a result, significant prudence in consumption”, reads the company’s statement.

The Italian-based footwear brand has reported preliminary sales of 720 million euros in 2023, down by 2.2% at current exchange rates and up by 0.3% at constant exchange rates, on a comparable basis to the previous year.

Channel

The wholesale channel, which accounted for 51.7% of the group’s sales, increased by 0.6% at current exchange rates and by 3.4% at constant exchange rates last year to 371.8 million euros, as compared to 2022.

Franchising channel sales, equal to 8.4% of Geox sales, totalled 60.2 million euros, decreasing by 5.3% in 2023, on a comparable basis to the previous year. “The performance for the year (…) was negatively affected by the reduction in the number of stores compared to 2022”.  At the same time, directly operated stores (DOS) sales, representing 40% of total sales, declined by 4.9% at current exchange rates and 2.7% at constant exchange rates year-over-year to 302.4 million euros in 2023.


Region

The group’s sales in Italy amounted to 200.8 million euros last year, up by 3.1% on the prior year and accounting for 27.9% of total sales. This performance was mainly driven by the wholesale channel, but partially offset by the negative performance of the franchising channel and the direct store network.

In Europe*, Geox’s sales decreased by 7.1% year-over-year in 2023 to 304.6 million euros, led “by the negative performance achieved in the German market and specifically in the Multibrand channel”; sales in this region represented 42.3% of the group’s total sales.

In the North American region, the company’s 2023 sales totalled 27.2 million euros, down by 10.1% (or 5.4% at constant exchange rates) on the previous year, as “the positive results of the Multibrand channel were more than offset by the lower result achieved by the direct store, mainly due to a lower number of stores”. Geox also reported that sales in this region accounted for 3.8% of its total.

Sales in other countries, which equalled 26.0% of the group’s total sales, increased by 2.4% (or 12.5% at constant exchange rates) last year, reaching 187.0 million euros, as compared to 2022. “Positive performance was delivered in the MEA region, particularly due to the signing of significant new distribution agreements aimed at expanding the sales network”, highlighted Geox.


Product Category

The Italian-based group reported that footwear accounted for 90% of total sales at 646.9 million euros in 2023, down by 2.4% (or 0.3% at constant exchange rates), on a comparable basis to the previous year. Sales in the apparel segment totalled 72.7 million euros in these twelve months, up by 0.3% at current exchange rates (or 5.7% at constant exchange rates).

*Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland


Image Credits: shoes-report.com

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