Geox sales rise 3% in 2016
Italian footwear specialist Geox has recorded a revenue of 900.8 million euros, or growth of 3% compared to 2015. Net profit fell from 10 to 2 million euros. Its EBITDA has similarly dropped, standing at 47.5 million euros in 2016, compared to 61.8 million the previous year.
Sales have been pushed high by the brand’s wholesale network, a segment that has seen growth of 11.7% on the global scale, as well as the brand’s online business which has soared by over 30%. The footwear segment represents 91% of the company’s revenue, at 815.5 million euros (+3.9% year-on-year) while apparel has slipped by 4.6% (85.2 million euros).
European sales comprised 44% of its total turnover of 396.6 million in 2016 (+5.6%).
“Russia and Eastern European countries have been the countries to most significantly contribute to the upturn, while Austria, Switzerland and the UK have also been very satisfactory with double-digit growth,” commented Mario Moretti Polegato, president and founder of ‘the breathable shoe’ company which achieves 30% of its sales in its domestic market. In North America, sales have plunged by 60 million euros, a drop of 3.4%.
The Italian company is redefining the network, opening stores in new markets and streamlining its business in existing markets. As such, it opened 104 stores in 2016, simultaneously leaving behind 104 boutiques. 21 points of sale have been closed in Italy, 15 in other European countries, and 64 elsewhere in the world. Geox, which has 1161 monobranded points of sale, has recently changed General Manager: Gregorio Borgo (ex-Pirelli) has taken over from Giorgio Presca, who left with severance pay of 4.35 million euros.
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