Italian brand Geox rides out the storm with sales of €264m in H1

First half (H1) sales at Italian shoe and apparel brand Geox grew 8.4% to €264 million compared to €243.6 million in same period of FY20. Despite challenges during Q1, the company recovered strongly in the next quarter where sales expanded 91%. Online sales, which include other e-tailers, contributed one-third of total sales.

“The results of the first half, although still strongly impacted by the Covid-19 pandemic, show a significant improvement compared to last year thanks to the positive evolution of sales, supported by the strong recovery in the second quarter, the increase in gross margins (+690 bps) and the incisive and continuous saving initiative on costs, achieved also thanks to the lump sum support received in some European countries (-8.5%),” the company said in a statement.
 
“Since the reopening of the stores, we are experiencing gradual improvement in the performance of our network, which has been fully operational since the end of June. The first weeks of July continue to confirm the second quarter trend with like-for-like direct store sales up 23% compared to July 2020, and increasingly closer to pre-pandemic levels,” the Italian manufacturer added.

Gross profit escalated to €126.5 million (from €99.8 million), while the operating loss narrowed to €29.5 million (€70.6 million). The net loss reduced during the first half to €36.9 million (€81.9 million).
 
Multi-brand stores achieved sales of €141.8 million, up 16.8% against €121.4 million in H1 FY20, benefiting from the performance in Q2 due to the stronger trend in seasonal replenishment, earlier timing of shipments of the FW21 collection and increased sales of stock from previous seasons.
 
Furthermore, sales from franchising and the DOS (directly operated stores) channel, both remained stable at €17.8 million and €104.4 million during first half ended on June 30. Sales of men's and women's shoes were also positive during Q2 in both physical and digital channels, with a reduction in average discounts for both genders on both channels, the statement said.
 
Except North America, sales from all the regions Geox sells in reported increases. Sales from Italy in the six-month period rose 7.4% to €64.3 million, driven by a lower percentage of stores closed due to lockdown than in 2020. Sales in Europe rose 6.6% to €121.2 million, and other countries’ sales expanded 16.8% to €67.8 million.
 
Category-wise, footwear sales during H1 FY21 grew 11.3% to €245.3 million. However, apparel sales slipped 19.1% to €18.7 million.