Geox H1 net sales fall by 4 percent

Geox first half 2012 consolidated net sales decreased by 4 percent (5 percent at constant exchange rates) to 429,1 million euro’s (528,5 million dollars). Footwear sales represented 87 percent of consolidated sales, amounting to 375,5 million euro’s (462,50 million dollars), with a 5 percent decrease compared to the same period of 2011. Apparel sales accounted for 13 percent of consolidated sales equal to 53.6 million euro’s (66 million dollars), with a 2 percent decrease.

Sales in Italy, the group’s main market, which accounted for 36 percent of sales (38 percent in the first half of 2011) amounted to 156,6 million euro’s (192.88 million dollars), showing an 8 percent decrease. Sales in Europe, which accounted for 43 percent of sales (in line with the first half of 2011), declined by 5 percent to 183.1 million euro’s (225.52 million dollars), compared with 192.2 million euro’s (236.73 million dollars) in the first half of 2011. North American sales decreased by 4 percent at 25.4 million euro’s (31.29 million dollars) (-10 percent at constant exchange rates). Sales in the other countries increased by 8 percent (plus 5 percent at constant exchange rates).

Analyzing sales by distribution, the Geox Shop channel (franchising and Directly Operated Stores - DOS) increased by 8 percent. This channel represented 49 percent of sales (43 percent in the first half of 2011). The sales of Directly Operated Stores (DOS) that have been open for at least twelve months (comparable stores sales) increased by 3 percent during the first half of 2012. Comparable store sales related to the spring/summer 2012 collections (from February 27 to July 22) increased by 6 percent. Franchising channel reported an increase of 8 percent in the first half of 2012 to 95.2 million euro’s (117.26 million dollars), equal to 22 percent of sales. Multibrand, the group’s main distribution channel, accounted for 51 percent of sales (57 percent in the first half of 2011).

Mario Moretti Polegato, chairman and founder of Geox, commented: “Geox has closed the first half of 2012 with a slight reduction in turnover of four percent in line with expectations. There has also been a good improvement in margins which we have invested in the product, in the development of emerging markets and in communication. The profitability, in percentage terms, is substantially in line with last year and the cash position is solid, at 80 million euro. As previously announced, the second half of the year is proving to be difficult due to the economic downturn in Mediterranean countries where the contraction in consumption is most widespread and in the wholesale channel. However, the dynamic development of many countries such as Russia, Eastern Europe and the Far East, the new direct store openings in China and Hong Kong and the encouraging trend in sales at our direct stores in general, showing comparable growth of six percent in the spring/summer season, confirm the validity of our growth strategy focused on these emerging markets and on opening new retail stores."

As of June 2012 the overall number of Geox Shops was 1,172 of which 261 were DOS. New openings include shops in Rome, Amsterdam, Paris, London, Madrid, Budapest, Hong Kong, Tianjin.