Against the backdrop of weak demand in Europe, Italian apparels and footwear company Geox Spa witnessed a dip in sales revenue in the first nine months of the year 2013 as clothing sales declined.
Geox Spa, which is a holding company engaged in the manufacturing of apparel and footwear, reported a 12 per cent dip in consolidated sales revenues at 618.1 million euro in the nine months ended September 30, 2013 from 701.4 million euro in the same period a year ago.
The company, which caters to men, women and children by offering a portfolio of casual apparel brands, witnessed a 20.4 per cent decline in consolidates sales from the clothing segment at 79.3 million euro in the nine months ended September 30, 2013 from 99.6 million euro in the same period a year ago.
Clothing sales represented 13 per cent of the company’s consolidated revenues in the first three quarters of the financial year 2013 ending December 31, 2013, compared to 14.2 per cent in the same period of the previous year.
The sharp dip in clothing sales in the first three quarters of 2013 was attributed to a difficult situation in the European economy with some countries in Mediterranean Europe battling a recession, record high joblessness, tight credit and severe fiscal pain, crimping domestic demand and affecting the region’s apparels industry.
Geox Spa, which is listed on the Milan Stock Exchange, is banking on new products and penetration of new geographies including fast growing economies such as China and Hong Kong to boost sales growth, going forward.