Geox FY net sales up 3 percent, footwear sales rise 3.9 percent
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Business
2016 consolidated net sales at Geox increased by 3 percent to 900.8 million euros (952 million dollars), a 3.3 percent rise at constant forex. Footwear sales represented 91 percent of consolidated sales, amounting to 815.5 million euros (862 million dollars), with a 3.9 percent or 4.2 percent increase at constant forex compared to 2015. Apparel sales accounted for 9 percent of consolidated sales amounting to 85.2 million euros (90 million dollars), which were down 4.6 percent or 4.5 percent at constant forex.
Commenting on the results, Mario Moretti Polegato, Chairman and Founder of Geox, said, “Geox closes 2016 with a 3 percent growth in revenues, thanks to the excellent performance, in all major markets, of the wholesale channel, increasing by 12 percent, and of the e-commerce channel which grew by more than 30 percent. I am therefore confident that our Group, despite a context of uncertainty in some markets, will be able to achieve positive results this year, based on a different sales channel mix, with profitability in line with expectations.”
Geox reports revenue rise in Europe
Revenues generated in Italy, amounted to 270.1 million euros (285 million dollars), compared to 281.1 million euros (297 million dollars) of the previous year due to, the company said, planned rationalization of a number of mono-brand stores, which was partially offset by the positive performance of the wholesale channel, up 5.4 percent.
Sales in Europe, increased by 5.6 percent to 396.6 million euros (419 million dollars). North American sales amounted to 60.7 million euros (64 million dollars), showing a decrease of 3.4 percent or 1.1 percent at constant forex. Sales in other countries increased by 12 percent or 12.8 percent at constant exchange compared to 2015.
Summing upDOS channel suffers while wholesale sales up 11.7 percent
Revenues generated by DOS channel recorded a 2 percent or 1.6 percent reduction at constant forex at 370.8 million euros (392 million dollars). This performance, Geox said, is due to the planned rationalization of stores and to the decline of 1 percent in like-for-like sales against comparable store sales rise of 4.2 percent in 2015.
Sales of the franchising channel amounted to 134.6 million euros (142 million dollars), a decline of 5.2 percent or 5.1 percent at constant forex.
Wholesale stores revenues amounted to 395.3 million euros (418 million dollars), an increase of 11.7 percent or 12 percent at constant forex compared with last year. This trend, the company said, is due to a positive performance recorded in the Group’s main markets. As of December 31, 2016 the overall number of Geox Shops was 1,161 of which 455 DOS. During 2016, 104 new Geox Shops were opened and 104 have been closed, in line with the rationalization plan of the mono-brand network.
EBITDA was 47.6 million euros (50 million dollars), 5.3 percent of sales, compared to 61.8 million euros (65 million dollars) in 2015, 7.1 percent of sales. The EBITDA adjusted, excluding special items was equal to 52.8 million euros (55 million dollars), 5.9 percent on sales compared to 61.8 million euros (65 million dollars) of 2015.
The Board of Directors has decided to propose to the Shareholders' Meeting the distribution of a dividend of 0.02 euro (0.02 dollar) per share for a total amount of 5.18 million euros (5.48 million dollars).
Geox financial performance
Picture:Geox