Geox (GEO) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales declined by 2.4% year-over-year to €189.0–€190 million, in line with expectations and the new business plan, with web channel growth partially offsetting weaker wholesale and retail performance due to network rationalization and store closures.

• Like-for-like retail sales remained stable despite a challenging macroeconomic environment and consumer demand pressures.

• Early positive feedback for new product launches, notably Spherica Plus, contributed to web channel gains.

• Phase One of the business plan delivered significant cost optimizations and efficiencies, supporting margins and profitability.

• Financial profile strengthened through improved working capital management, debt rescheduling, and planned capital increase.

Financial highlights

• Net sales for Q1 2025 were €189.0–€190 million, down 2.4% year-over-year.

• Adjusted EBIT margin improved by approximately 330 basis points, with EBIT up €6–6.3 million year-over-year, driven by cost optimization.

• Net financial position (pre-IFRS16) at March 2025 was €-108.5 million, improved from €-134.9 million a year ago; bank debt increased by €5.4 million from December 2024 due to seasonal inventory purchases.

• Operating working capital at €144–144.6 million (21.9% of sales), down from €163 million (23.5–23.6%) in Q1 2024.

• Inventory reduced to €205.7 million, down €38.1 million from December 2024 and €29.1 million year-over-year.

Outlook and guidance

• Full-year 2025 guidance is confirmed, with a low single-digit sales decline and stable profitability and margin trends expected.

• Management remains cautious due to persistent macroeconomic and geopolitical uncertainties.

• Contingency plans are in place for further cost reductions and CapEx adjustments if needed.