Italian brand Geox's sales down by 13.5% in Q1 FY24

The company saw solid performance of the physical DOS channel, with comparable sales increased by 4.4 per cent and in particular of the digital DOS, which shows an increase of 41.9 per cent compared to the first three months of 2023.

“The first quarter of 2024 has proven to be extremely challenging and complex as highlighted by numerous market indicators already emerging towards the end of last year. Sales for the first three months of 2024 experienced a decline by 13.5 per cent compared to the same period last year, which, on the contrary, had been characterised by very positive performance. This decrease is primarily attributable to the Wholesale channel and is largely due to difficulties that several operators have been facing in many of our reference markets,” chief executive officer Enrico Mistron, said.

The sales from physical and digital DOS, that represent 36.4 per cent of the total group's sales, amounted to €70.6 million (~$76.74 million), compared to €67 million (~$72.83 million) recorded in the first three months of 2023 (+5.4 per cent at current exchange rates, +6.9 per cent at constant exchange rates). Comparable sales (LFL) from physical stores witnessed a growth of 4.4 per cent compared to 2023, albeit only partially offsetting the negative perimeter effect, still evident but primarily attributable to closures in the fiscal year 2023 and to a lesser extent, those in the first quarter of 2024.

“Nevertheless, there are positive signals regarding the performance of our direct-to-consumer (DOS) channels. Comparable sales (LFL) from physical DOS confirm a positive trend, reflecting the impact of investments in product and positioning towards a premium segment. In this regard, we are pleased to announce the continuation of our collaboration with the Oscar-winning actress Penélope Cruz in her role as global ambassador for Geox, also for the upcoming FW24 season,” Mistron explained.

“Furthermore, we would like to emphasise in this context the excellent performance of digital DOS sales, which underscore and confirm the quality of investments made in this direction, providing us with further confidence for future endeavours. The persistence of the complexity and uncertainty observed in all our major reference markets in these first months of 2024 lead us to maintain a prudent and focused approach to the growth of the most profitable markets, the streamlining of processes, and the optimisation of cost structures,” concluded Mistron.

Fibre2Fashion News Desk (RR)