Geox (GEO) H2 2023 earnings summary

Executive summary

• FY23 sales were €719.6m, down 2.2% at current exchange rates but up 0.3% at constant rates; EBIT rose to €15.6m from €4.3m.

• Network optimization and cost control supported margin gains amid challenging market conditions, particularly in H2.

Financial highlights

• FY23 revenue was €719.6m versus €735.5m in FY22; negative currency impact was €18m. Q4 sales were €138m, down 17.3% YoY at current rates.

• Gross profit was €364.6m, or 50.7% of sales, versus €349.2m and 47.5%; lower inbound finished-product costs supported the increase.

• EBITDA rose to €89.0m from €79.4m; EBITDA excluding IFRS 16 was €37.0m versus €26.6m.

• Net loss narrowed to €6.5m from €13.0m; net financial expenses rose to €21.4m from €12.7m, partly due to higher debt costs and negative FX differences.

Outlook and guidance

• FY24 sales are expected broadly in line with FY23; DOS like-for-like sales through week 8 were positive high-single digit YoY.

• Guidance assumes disciplined DOS discounting, no major change in consumer habits, and no significant deterioration in geopolitical conditions, currencies, supply chains or transport reliability.

• Network consolidation and cost management remain priorities, with focus on margins, service levels and transportation costs; forecast uncertainty is high.