Geox’s H1 revenue down 3.5% but e-commerce grows 25%
Geox continues to tumble. The Italian footwear group closed the first six months of the 2019 financial year with a revenue of €399.4 million, down 3.5% compared to the previous year, having already lost 6.5% in 2018 and 1.3% in Q1 2019. EBITDA for H1 2019 was down by nearly 26%, to €18.7 million.
The group attributed this negative performance to unfavourable weather in April and May, which hampered the start of the Spring/Summer 2019 season, and to the streamlining of its franchising network, which lost 10% of stores in the last 12 months. The number of directly operated Geox stores instead rose from 436 at the end of June 2018 to 448 as of now.
The wholesale channel, which accounted for 46.5% of the group’s revenue, lost 2.8%, while retail sales (accounting for 44% of the total) posted a 0.8% increase. Franchised stores, due also to the reduction in numbers, lost 21.9% of revenue, falling to €37.9 million, while direct e-tail continued to boom, posting a 25% increase in the first quarter and a 26% one in the second quarter.
Geox lost ground in all its main markets: Italy, which generated 29.1% of total revenue, fell to €116.2 million (-6.5%), owing to the group’s store rationalisation policy; the rest of Europe (which accounted for 43.8% of total revenue) fell to €174,8 million (-2.8%); North America lost 8.6%, down to €22.1 million, though online sales rose by 36%.
In terms of product categories, footwear, the main business segment for Geox (91.2% of the total), lost 3.3%, falling to a revenue of €364.3 million. Apparel also slumped, falling 5.8% to €35.2 million, though the performance of directly operated stores was positive (+18%).
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