Companies

Geox improves profitability despite first-half sales decline

Aug 7, 2026 Italy

The Italy-based company has reported sales of 270.4 million euros in the first half of 2026, a decrease of 11.4% year-on-year, while adjusted EBIT increased to 5.6 million euros from 0.6 million euros

On a comparable basis, sales declined by 8.8%. “Geox has faced a challenging and sharply contracting market, already impacted by an extremely fierce competition as well as by natural and other extraordinary events, leveraging all the measures within its control to restore profitability even at the risk of losing sales volumes”, said the Chief Executive Officer Francesco Di Giovanni.

The company’s wholesale sales fell by 13.0% (12.8% at constant exchange rates) to 87.5 million euros during the first half of the year, compared to the same period last year. This reflects lower order intake for the Spring-Summer 2026 collection across key markets.

Meanwhile, retail sales fell by 8.5% (8.7% at constant exchange rates) to 113.5 million euros. Geox attributed this decrease to a negative perimeter effect of around 3.9 million euros resulting from store closures and a further impact of 6.9 million euros from weaker store traffic.

At the end of June, the group had 525 Geox Shops, including 231 directly operated stores, compared with 570 locations at the end of 2025. Thirteen stores were opened and 58 were closed during the first six months of the year.

Digital sales decreased by 14.0%. Although Geox0s own website performed positively, this was not enough to offset the lower volumes from wholesale web and marketplace platforms. The directly operated website recorded like-for-like growth of 9.2%.

Regional performance

Geox saw a decline in sales across all geographic regions. In the first half of the current year, sales in Italy totalled 83.7 million euros, representing 31.0% of group sales and marking a 7.5% year-on-year decline.

In the rest of Europe, the company’s sales dropped by 9.5% (a 9.4% decline at constant exchange rates) year-on-year to 131.0 million euros, accounting for 48.4% of total sales during the period. This decline was mainly attributed to a weaker performance in the DACH region and France.

Sales fell by 20.6% (21.4% at constant exchange rates) year-on-year to 55.7 million euros in Other countries. Geox cited weaker performance in the Middle East, Africa, and Russia, where operations were still being affected by instability and geopolitical tensions.

Operational Performance

Despite lower sales, Geox’s gross margin improved to 52.6% from 51.2% in the first half of 2025, supported by initiatives to optimise the collection and channel mix.

Adjusted operating costs decreased by 19.1 million euros compared with the same period a year ago, reaching 136.6 million euros in the first half of the year. This was mainly due to lower personnel, services and consulting expenses, as well as reduced logistics and store network costs.

The company’s adjusted EBITDA, excluding the effects of IFRS 16, reached 12.6 million euros, compared with 8.6 million euros in the first half of 2025. Adjusted EBIT increased significantly to 5.6 million euros from 0.6 million euros.

Geox reported that inventory levels decreased from 246.9 million euros to 194.4 million euros between June 2024 and June 2025, and that bank debt decreased from 100.5 million euros to 95.3 million euros over the same period.

Fiscal 2026 Outlook

For the full year, Geox expects sales of around 550 million euros, which represents a high single-digit decline compared with 2025. Adjusted EBITDA, excluding the effects of IFRS 16, is forecast to be around 34 million euros, up from 25 million euros in 2025. Meanwhile, adjusted EBIT is expected to reach approximately 21 million euros, up from 9 million euros.

Image Credits: geox.com

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