Italian shoemaker Geox sees lower 2023 sales but higher margins (updated)
09/11/2023 17:50
(Adds details from paragraph 4, CEO quote in para 5)
Nov 9 (Reuters) - Italian shoemaker Geox GEO.MI
slightly lowered its full-year sales guidance for a second time
on Thursday, after reporting that preliminary sales had risen
4.1% in the first nine months of the year from the same period
of 2022.
The maker of breathable, waterproof footwear now sees
full-year sales growth in the low to mid single digits at
constant exchange rates, compared to previous guidance of
between 4% and 6% year-on-year.
However, it said it expected its full-year gross margin to
increase by 250-300 basis points, up from a previous forecast of
220-240 bps.
Geox said the lower sales guidance reflected "a slowdown in
sales performance in May and September due to decidedly abnormal
weather conditions".
Changing weather trends would force the firm to rely more
heavily on best selling products and marketing, Geox Chief
Executive Livio Libralesso told analysts, without giving further
details.
The group appointed Spanish actress Penelope Cruz as a
global ambassador in September in a push to unlock the potential
of the women's market.
The firm also appointed Andrea Maldi as chief financial
officer from Dec. 4 as part of a management revamp, Libralesso
added.
Geox's total sales were 582 million euros ($623.3 million)
in the January-September period, from 569.1 million euros a year
earlier.
($1 = 0.9338 euros)
(Reporting by Alessandro Parodi, editing by Kirsten Donovan)
((Alessandro.Parodi@thomsonreuters.com;))