The Italian shoe manufacturer Geox has published its consolidated sales figures and financial position for the first nine months of 2024. Sales amounted to 525.5 million euros, a decrease of 9.7% at current exchange rates (9.0% at constant exchange rates) compared to the previous year. The decline is due to negative currency effects (4.8 million euros) as well as the closure of branches and franchise stores in 2023 (16.2 million euros).
While the direct sales channel (physical and digital) recorded solid growth – particularly driven by the digital segment with a comparable sales increase of +11.4% – wholesale remains under pressure and recorded a decline of 15.4% (14.5% at constant exchange rates).
The strategic challenges in the US and China markets prompted Geox to change its sales model in these regions. The company plans to discontinue its current, unprofitable direct business and replace it with locally adapted sales solutions. According to CEO Enrico Mistron, Geox wants to continue to ensure a strong presence in these markets and is committed to new strategic partnerships to better address market conditions.
Net financial assets (before IFRS 16) deteriorated from -129.0 million euros (as of September 30, 2023) to -145.8 million euros in 2024. The working capital ratio remained stable and corresponds to seasonal fluctuations. Mistron emphasized: “The positive results in direct sales demonstrate the strength of our strategic direction in this area as the multi-brand channel continues to struggle with difficult market conditions. The measures to optimize our branch network and the realignment in strategically important markets are necessary steps to secure long-term growth.” With this realignment, Geox is focusing on profitability and adaptability in a continued challenging global market environment.
