Italy · Delayed Price · Currency is EUR Geox S.p.A. Earnings Call Transcripts
Fiscal Year 2026
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Despite a challenging market, profitability improved in H1 2026 through cost efficiencies and operational changes, with gross margin rising to 52.6% and adjusted EBITDA up to EUR 13 million. Sales declined 8.8%, but debt reduction and strong cash flow position the company for further improvement.
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Q1 2026 saw a 12.5% sales decline year-over-year, but cost savings drove adjusted EBITDA above budget. Digital channels outperformed, while retail and wholesale web lagged. Management reaffirmed full-year margin and debt targets, focusing on innovation and digital investment.
Fiscal Year 2025
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Sales declined 5.3% on a comparable basis in 2025, but net losses were halved and debt reduced through aggressive cost controls and network rationalization. 2026 is expected to see a low single-digit sales decline, stable margins, and further debt improvement.
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Sales declined 3.8% like-for-like and 6.2% overall, with wholesale and e-commerce underperforming but direct retail stable. Cost savings improved adjusted EBIT and EBITDA margins, and restructuring is underway, with year-end net debt expected at €100–110 million.
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H1 2025 saw improved profitability and reduced net loss despite a sales decline due to the China exit. Cost controls, a €30 million capital increase, and strong direct website sales supported results. Year-end net debt is expected between €100–110 million.
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Sales declined 2.4% year-over-year to €190 million, but profitability improved with a 330 bps EBIT margin increase due to cost optimization. Web sales grew 4.6%, offsetting weaker wholesale and retail, and guidance for 2025 remains a low single-digit sales decline with stable margins.
Fiscal Year 2024
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Revenue declined 7.8% year-over-year due to wholesale weakness, but cost savings and operational efficiencies partially offset margin loss. Adjusted EBIT and EBITDA fell, with non-recurring costs impacting results. The outlook for 2025 anticipates a slight sales decrease and margin pressure.
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Net sales fell 9.7% to €525 million in the first nine months, with direct channels showing growth but wholesale under pressure. Strategic exits from China and the U.S. will incur one-off costs, impacting 2024 EBIT margin, while net debt is expected to remain stable.
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Sales declined 9.4% year-over-year in H1 2024 due to tough market conditions and wholesale weakness, but digital and direct channels grew strongly. Cost reductions helped contain losses, and a margin increase is expected for the year. Net debt is forecasted to remain stable.