Shoemaker Geox cuts full-year sales outlook, wholesale weighs on Q1 figures (updated)
14/05/2024 18:18
(Adds Q1 figures, CEO quote)
May 14 (Reuters) - Italian shoemaker Geox GEO.MI cut
its full-year sales growth outlook on Tuesday, citing
inflationary pressures as it reported a double-digit yearly drop
in first-quarter revenues due to weakness in its wholesale
channel.
The maker of breathable, waterproof footwear now expects
2024 revenue to drop by a mid-single-digit percentage from last
year, having previously forecast sales to be flat year-on-year.
In the January-March quarter, the group recorded
consolidated sales at 193.6 million euros ($209.38 million),
down 13.5% year-on-year at current exchange rates.
Its wholesale channel performance saw a yearly fall of
almost 22%, attributed to a "significantly lower than expected"
order intake for the Spring/Summer line-up for 2024.
"The persistence of the complexity and uncertainty observed
in all our major reference markets in these first months of 2024
lead us to maintain a prudent and focused approach to the growth
of the most profitable markets," said CEO Enrico Mistron.
However, Geox confirmed its target of a 50 basis-point
increase in its operating margin compared to 2023. Mistron, who
was appointed to lead the group in March, said that Geox was
developing a new 2025-2027 strategic plan to be presented this
financial year.
($1 = 0.9246 euros)
(Reporting by Enrico Sciacovelli
Editing by David Goodman and Tomasz Janowski)
((Enrico.Sciacovelli@thomsonreuters.com; +48587720309;))