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 declines in wholesale and franchising channels, partially offset by strong growth in direct digital channels.

• EBIT was negative at €-5.5 million (vs. €3.6 million in H1 2023); net loss widened to €-15.4 million from €-9.6 million.

• EBITDA dropped to €29.1 million (9.1% of sales) from €40.2 million (11.4% of sales) in H1 2023.

• Direct digital channel sales grew 29.9% year-over-year, with DOS B&M LFL up 0.7%.

• Management is finalizing a new strategic plan for 2025-2027, focusing on resilience and future growth.

Financial highlights

• Net sales for H1 2024 were €320.4 million, down €33 million year-over-year, with a significant perimeter effect of €11 million and FX impact of €5.3 million.

• Gross margin improved to 51.2% (up 20bps year-over-year), reflecting supply chain efficiencies.

• EBITDA was €29.1 million (9.1% of sales), down from €40.2 million (11.4%) in H1 2023; EBIT margin was -1.7%.

• Net financial position (pre-IFRS 16) at €-109.0 million, up from €-93.1 million at Dec 2023; net working capital at €126.7 million (18.5% of sales).

• Net financial expenses decreased to €-6.5 million from €-13.3 million, aided by positive FX differences.

Outlook and guidance

• Full-year 2024 sales expected to decline by mid-single digits versus 2023, with operating margins forecast to improve by 50bps.

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

• Net financial position expected to be stable at €105-110 million by year-end, assuming stable currency markets.

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

• Guidance remains subject to significant geopolitical and inflationary uncertainties.