Geox returns to profitability

By

Sarah Ahssen

Published
Feb 26, 2016

In 2015, Italian footwear manufacturer Geox generated a revenue of €874.3 million, equivalent to a 6.1% rise. But notably Geox has returned to profitability, posting a net income of €10 million, compared to an €2.9 million loss in 2014.

Footwear sales represented 90% of the group's sales, and amounted to €784.9 million, for an 8.8% increase. By contrast, apparel sales declined by 12.9%, reaching € 89.3 million. However, Geox appears to want to strengthen in the segment, having recently signed an agreement with Kanz Financial Holding from Germany, for the development, manufacture and distribution of an apparel line for children and adolescents.

Geox sales in Italy reached €281 million, equivalent to a 3.1% rise and accounting for 32.2% of total sales. In Europe (excluding Italy), sales grew 4.6% to €375.6 million, while those in North America reached €62.7 million, equivalent to a 13.1% rise. Sales in other countries amounted to €154.7 million, and rose 13.1%.

Sales in directly owned stores represented 43% of the group's revenue, and rose 9.5% to €378.5 million. The growth was notably led by new store openings. Sales in franchised stores recorded a 4.4% decline, down to €142 million. This shortfall was due to the closing down of unprofitable stores.

Geox operates 1,161 branded stores worldwide, 476 of which are directly owned. In 2015, 121 new Geox stores have opened, and 185 have closed down, chiefly among franchised stores. Finally, wholesale operations too have increased, by 7.2%,  and were worth over €353 million.