Geox (GEO) H2 2024 earnings summary

Executive summary

• FY2024 sales declined 7.8% year-over-year to €663.8 million, mainly due to wholesale channel weakness, store network rationalization, and challenging macroeconomic conditions.

• Management achieved approximately €20 million in cost savings, partially offsetting sales challenges and resulting in positive adjusted EBIT.

• Adjusted EBIT was €8.8 million (down from €15.6 million in 2023), while reported EBIT was negative at €4.2 million.

• Net result was a loss of €30.3 million, impacted by lower volumes and extraordinary items including restructuring and market exits.

• The 2025-2029 business plan focuses on innovation, style, and sustainability as strategic pillars.

Financial highlights

• Sales for 2024 were €663.8 million, down 7.8% year-over-year, with a negative currency impact of €5.3 million.

• Adjusted EBITDA (excl. IFRS 16) was €26.2 million, down from €37.0 million in 2023.

• Adjusted gross margin increased to 50.9% (+20 bps), supported by improved channel mix.

• Adjusted net result: €-17.3 million, compared to €-6.5 million in 2023.

• Free cash flow was €32.0 million, with capex reduced by 12% to €16.5 million.

Outlook and guidance

• 2025 is expected to see a low single-digit decrease in sales, with a projected adjusted EBIT margin decrease of about 80 basis points year-over-year.

• DTC digital expansion prioritized; physical store network to remain stable.

• Multibrand network quality to be enhanced through selective rationalization.

• High forecast uncertainty due to geopolitical and inflationary risks.