First half (H1) sales at Italian shoe and apparel brand Geox grew 8.4 per cent to €264.0 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 per cent. Online sales which include other e-tailers as well, contributed one-third of total sales.
First half (H1) sales at Italian brand of shoe and clothing Geox grew 8.4 per cent to €264.0 million compared to €243.6 million in same period of FY20. Despite challenges during Q1, the company recovered strongly during next quarter where sales expanded 91 per cent. Online sales which include other e-tailers as well, 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 per cent),” 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 per cent compared to July 2020, and increasingly closer to pre-pandemic levels,” the Italian manufacturer added.
Gross profit escalated to €126.5 million (€99.8 million), while operating loss narrowed to €29.5 million (€70.6 million). 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 per cent against €121.4 million in H1 FY20, benefiting from the excellent performance of the Q2 due to the excellent 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 DOS (directly operated stores) channel, both remained stable at €17.8 million and €104.4 million during first half ended on June 30, 2021. 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 markets reported increase. Sales from Italy in the six-month period rose 7.4 per cent to €64.3 million driven from a lower percentage of stores closed due to lockdown than in 2020. Whereas Sales from Europe surged 6.6 per cent to €121.2 million, and other countries’ sales expanded 16.8 per cent to €67.8 million.
Categorically, footwear sales during H1 FY21 grew 11.3 per cent to €245.3 million. However, apparel sales slipped 19.1 per cent to €18.7 million.
Fibre2Fashion News Desk (JL)
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