“In the first quarter 2025, sales declined by 2.4% compared to the same period of the previous year. Nonetheless, the solid performance of the Web channel partially offset the contraction recorded in the Wholesale and Retail channels. I believe it is important to highlight however, that the Retail channel delivered comparable sales in line with the previous year. Despite this slight decrease in sales, cost rationalization and efficiency measures enabled us to achieve a higher adjusted EBIT compared to the first quarter of 2024, with an improvement of approximately 6.3 million euros(…) we believe it remains fundamental to maintain a prudent approach, focused on growing in the most profitable markets, further optimizing our processes, and keeping costs under control. We are fully aware of the persistent uncertainties affecting the environment, but the results achieved in this first quarter confirm the soundness of the path we have taken and strengthen our confidence in the medium-term sustainability of our business model”, commented Chief Executive Officer Enrico Mistron.

The decline in sales is mainly attributable to the performance of the wholesale and retail channels, only partially offset by the positive performance of the Web channel.

Distribution Channel

Wholesale channel sales amounted to 74.7 million euros, accounting for 39.5% of total group sales (40.3% in the first quarter of 2024), and recorded a decrease of 4.3% at current exchange rates (-4.5% at constant exchange rates) compared to 78.0 million euros in the first quarter of 2024. Retail channel sales amounted to 61.2 million euros, accounting for 32.4% of total group sales, down from 64.8 million euros in the first three months of 2024 (-5.5% at current exchange rates, -5.6% at constant exchange rates). Sales generated through digital channels - which, starting from this year, include the owned website and marketplaces, both directly managed and operating under a Wholesale model - recorded a positive performance, increasing by 4.6% compared to the first quarter of 2024. This result is attributable to the strong performance of Wholesale platforms, which also benefited from favorable shipping timing compared to the previous year.

Region

Sales generated in Italy accounted for 29.3% of total group sales (28.4% in the first quarter of 2024) and amounted to 55.4 million euros, slightly increasing by 0.6% compared to 55.0 million euros in the first quarter of 2024. This result was driven by the positive performance of the Web channel - supported by the aforementioned early shipments to Wholesale platforms - which fully offset the declines reported in the Wholesale channel (-4.7%) and in the Retail channel (-1.5%). 

Sales generated in Europe represented 45.3% of total group sales (43.4% in the first quarter of 2024), amounting to 85.6 million euros compared to 84.1 million euros in the first quarter of 2024, marking an increase of 1.8% (1.6% at constant exchange rates), mainly driven by solid performances in France and the DACH (Deutschland (D), Austria (A), and Switzerland (CH)) area. Similar to the Italian market, this region recorded positive results in the Web channel (+12.8%), which offset the weaker performances of the Wholesale (-4.6%) and Retail (-2.6%) channels.

Starting from this fiscal year, sales results from Canada are reported and discussed within the “Other countries” area. Sales generated in the Other countries area accounted for 25.4% of total group sales (28.1% in the first quarter of 2024) and amounted to 48.0 million euros, compared to 54.5 million euros in the first quarter of 2024, recording a decline of 11.8% (-12.1% at constant exchange rates). We note that this result was negatively impacted by the change in the geographic perimeter following the closure of the subsidiaries in China and the United States, which led to a revenue loss of approximately 4.6 million euros. In addition, we highlight the good sales performance in the MEA (Middle East & Africa) region, contrasted by weak results in Russia, where operations continue to be affected by the ongoing instability and tensions related to the current conflict

Sales by product category

Footwear accounted for 90.4% of consolidated sales, amounting to 170.8 million euros, down by 1.9% (-2.1% at constant exchange rates) compared to 174.1 million euros in the first quarter of 2024. Apparel represented 9.6% of consolidated sales, totaling 18.2 million euros compared to 19.5 million euros in the first quarter of 2024, marking a decline of 6.9% at current exchange rates (-7.0% at constant exchange rates).

OUTLOOK

When analyzing the outlook for the current fiscal year, Geox believes "it is essential to approach the international landscape with due caution, as it remains marked by persistent uncertainty and volatility. These factors continue to have a significant impact on market dynamics and consumer behavior, influencing both the quarter just ended and projections for the full year". Considering the first-quarter results and the above considerations, the company confirms its full-year 2025 guidance - while a slightly lower deviation is expected in terms of sales performance, estimates related to profitability remain unchanged.