Geox net sales fall 9 percent for nine months 2012

In the first nine months of 2012 Geox' consolidated net

sales decreased by 9 percent (10 percent at constant exchange rates) to 701.5 million euro (896.10 million dollars).

Footwear sales represented 86 percent of consolidated sales, amounting to 601.8 million euros (768.74 million dollars), with 8 percent decrease compared to the same period of 2011. Apparel sales accounted for 14 percent of consolidated sales equal to 99.7 million euro (127.36 million dollars), with a 12 percent decrease.

Cost of sales, as a percentage of sales, was 52.9 percent, compared to 54.4 percent for the nine months of 2011, producing a gross margin of 47.1 percent (45.6 percent in nine months of 2011). Selling and distribution expenses as a percentage of sales were 5.4 percent, substantially in line with the nine months of 2011 (5.1 percent). The Group’s operating result was 59 million euros (75.37 million dollars), 8.4 percent as a percentage of sales, compared with 103.2 million euros (131.83 million dollars) of the nine months of 2011 (13.4 percent as a percentage of sales). The operating results adjusted, excluding special items mentioned above, is equal to 70.9 million euros (90.57 million dollars) (10.1 percent on sales) compared with Euro 103.6 million (132.34 million dollars) (13.5 percent) of the nine months of 2011.

Mario Moretti Polegato, Chairman and founder of Geox, commented: “As expected 2012 is proving to be difficult due to the economic downturn of Europe's Mediterranean countries, where the contraction in consumption is most widespread and in the wholesale channel. However, the solidity of the Group, with 60 million euros (76.64 million dollars) cash at the end of September, the dynamic development of many countries such as Russia, Eastern Europe and the Far East, the new direct operated store openings in China and Hong Kong and the encouraging trend in sales at our direct stores in general, showing comparable growth of 9 percent in the fall/winter season, confirm the validity of our growth strategy focused on these emerging markets and on opening new retail stores."

As of September 2012 the overall number of Geox shops was 1,195. During the nine months of 2012, 156 new Geox Shops were opened and 101 have been closed. New openings of the third quarter include shops in Moscow, Hong Kong, Shanghai, Beijing and Tianjin.