Geox (GEO) H1 2024 earnings summary

Executive summary

• Sales for H1 2024 were €320.4 million, down 9.4% year-over-year, mainly due to wholesale and franchising declines, partially offset by strong digital channel growth.

• Cost reduction initiatives and supply chain efficiencies helped maintain profitability, with gross margin up 20bps to 51.2%.

• EBIT was negative at €5.5 million (vs. €3.6 million positive in H1 2023); net result was €-15.4 million.

• Net financial position (pre-IFRS16) at €-109.0 million, up from €-93.1 million at December 2023; net working capital at €126.7 million (18.5% of sales).

• A new strategic plan for 2025-2027 is being finalized, focusing on resilience and future growth.

Financial highlights

• Net sales for H1 2024 were €320.4 million, down €33 million or 9.4% year-over-year, mainly due to wholesale and franchising declines.

• Gross margin improved to 51.2% (up 20bps YoY), supported by supply chain efficiencies.

• EBITDA was €29.1 million (9.1% of sales), down from €40.2 million (11.4%) in H1 2023.

• Net financial expenses decreased to €-6.5 million, mainly due to positive FX differences.

• Net financial position (pre-IFRS16) at €-109.0 million, deteriorating from €-93.1 million at December 2023.

Outlook and guidance

• Full-year 2024 sales expected to decrease by mid-single digits compared to 2023, with operating margin up 50bps.

• DOS B&M and digital channels expected to maintain positive like-for-like growth for the rest of the year.

• Net financial position at year-end expected to be stable in the €105-110 million range.

• Spring-Summer 2025 wholesale campaign is tracking in line with 2024, with like-for-like growth of 6% in normal accounts.

• Forecasts remain subject to significant geopolitical and inflationary uncertainties.