Geox (GEO) Q4 2025 earnings summary

Executive summary

• FY2025 sales declined 8.3% to €608.7 million, or 5.3% excluding China, US, and non-profitable channels, amid a challenging consumption environment.

• Net loss halved to €16.2 million from €30.3 million in FY2024, supported by significant cost optimization and operational efficiencies.

• Adjusted EBIT was €9.0 million, nearly flat versus €8.8 million in 2024, as cost savings of €27.4 million offset sales underperformance.

• Strategic focus shifted to R&D, technological innovation, and a major design partnership for future collections.

• Major restructuring included operational downsizing, labor cost cuts, and network rationalization.

Financial highlights

• Net sales were €608.7 million, down 8.3% year-over-year; excluding China, US, and non-profitable channels, the decline was 5.3%.

• Adjusted EBITDA (excl. IFRS16) was €24.8 million (vs €26.2 million in 2024); adjusted EBIT was €9.0 million (vs €8.8 million in 2024).

• Gross margin stable at 51.0%; gross margin reduction of €27 million offset by equivalent cost base reduction.

• Net working capital rose to €135.7 million (22.3% of sales) from €104 million (15.7%).

• Net financial expenses dropped to €10.0 million from €21.7 million, aided by lower debt and favorable FX.

Outlook and guidance

• FY2026 sales expected to decline low single digits; adjusted EBIT margin guidance unchanged at 2–3%.

• Bank debt targeted to improve further to €80–85 million by end-2026.

• Gross margin for 2026 expected to remain flat versus 2025.

• New business plan refresh to be presented by June/Spring 2026, covering outlook through 2029.

• Ongoing efficiency initiatives and commercial actions anticipated to yield €8–9 million in cost savings.