Geox, a leading Italian footwear and apparel company, has reported consolidated sales of €320.4 million (approximately $349.12 million) for the first half of fiscal 2024 (H1 FY24), marking a 9.4 per cent decrease compared to the previous year, and an 8 per cent decline at constant exchange rates.

The company reported a slight increase in its gross margin, up by 20 basis points compared to the previous year, reflecting stable supply chain conditions. However, EBITDA fell to €29.1 million, representing 9.1 per cent of sales, down from €40.2 million (11.4 per cent of sales) in the first half of FY23. EBIT turned negative at €5.5 million, compared to a positive €3.6 million in H1 FY23, the company said in a press release.

Wholesales, which make up 48.7 per cent of the group's sales, decreased to €156 million, a 16 per cent decline at current exchange rates and 14.5 per cent at constant exchange rates, from €185.8 million in H1 FY23. The franchising channel, accounting for 7.3 per cent of the group's sales, saw a decline to €23.4 million, down by 15.2 per cent compared to the first six months of FY23.

Sales from directly operated stores (DOS), including both brick-and-mortar and digital channels, accounted for approximately 44 per cent of the group's sales, totalling €141 million. This represents a slight increase from €140.2 million in the first half of FY23, with a 0.5 per cent increase at current exchange rates and 1.6 per cent at constant exchange rates. Specifically, comparable sales (LFL) of brick-and-mortar stores saw a slight growth of 0.7 per cent compared to the first half of FY23.

In terms of geographical performance, sales in the domestic market represented 27.8 per cent of the Group's total sales, amounting to €89 million, a 9.9 per cent decrease from €98.8 million in the first half of FY23. European market sales accounted for 45.7 per cent of the Group's total sales, totalling €146.4 million, a slight decline of 1.7 per cent from €149 million in 2023. North American sales were €11.7 million, down by 13.7 per cent (13.2 per cent at constant exchange rates) compared to the first six months of FY23. Sales in other countries saw a significant decrease of 20.6 per cent compared to H1 FY23, with a 15.5 per cent decline at constant exchange rates.

Footwear sales, representing 91.1 per cent of consolidated sales, amounted to €291.9 million, down by 10.1 per cent (8.7 per cent at constant exchange rates) compared to the first six months of FY23. Apparel sales accounted for 8.9 per cent of total sales, totalling €28.5 million, a slight decline of 1.1 per cent from €28.8 million in the first half of FY23 at both current and constant exchange rates.

“The first half of 2024, consistent with what we have seen in the first months of the year, has proven extremely challenging due to the persistence of complex market conditions. The consolidation of the positive results achieved by the direct digital channel in the second quarter, along with a slight improvement in comparable sales of the direct brick-and-mortar channel, partially offset the sales results of the wholesale channel,” said chief executive officer Enrico Mistron.

Fibre2Fashion News Desk (DP)