Italian shoe and apparel brand Geox has announced a strong sales performance in the first half of the year, reporting €264 million in revenue. This represents an increase of 8.4% compared to the same period last year. Despite facing challenges in the first quarter, the company experienced a robust recovery in the second quarter, with sales growing by 91%. Online sales, including those through e-tailers, accounted for approximately one-third of the total sales.
Geox acknowledges the ongoing impact of the Covid-19 pandemic on its business, but it emphasizes the positive trajectory of its sales. The company attributes this improvement to the increase in gross margins (+690 bps), the implementation of effective cost-saving measures, and the support received from certain European countries.
Since the reopening of its stores, Geox has also seen a gradual improvement in the performance of its retail network, which has been fully operational since the end of June. The first weeks of July have further confirmed the positive trend seen in the second quarter, with like-for-like direct store sales increasing by 23% compared to July 2020 and approaching pre-pandemic levels.
During the first half of the year, Geox achieved a gross profit of €126.5 million, up from €99.8 million in the previous year. The operating loss narrowed to €29.5 million from €70.6 million, while the net loss reduced to €36.9 million from €81.9 million.
Multi-brand stores performed well, with sales reaching €141.8 million, a 16.8% increase compared to the first half of the previous year. This was mainly due to the stronger trend in seasonal replenishment, the earlier timing of shipments for the FW21 collection, and increased sales of stock from previous seasons.
Sales from franchising and the directly operated stores (DOS) channel remained stable at €17.8 million and €104.4 million, respectively, during the first half of the year.
In the second quarter, both men’s and women’s shoe sales showed positive growth, both in physical stores and online. The average discounts for both genders and channels decreased, indicating strong demand and pricing power.
Geox experienced sales growth in all regions except for North America. Sales in Italy increased by 7.4% to €64.3 million, driven by a lower number of store closures due to lockdown compared to the previous year. European sales grew by 6.6% to €121.2 million, while sales in other countries expanded by 16.8% to reach €67.8 million.
Footwear sales grew by 11.3%, reaching €245.3 million in the first half of the year. However, apparel sales declined by 19.1% to €18.7 million.
Overall, Geox’s strong sales performance in the first half of the year reflects a successful recovery from the challenges posed by the Covid-19 pandemic. The company’s focus on cost savings, the support received from European countries, and its ability to adapt to changing consumer behaviors through online channels have all contributed to this positive outcome. Geox remains optimistic about its future performance as the retail industry continues to rebound from the effects of the pandemic.
Useful links:
– Geox Official Website
– Geox on Reuters
