Geox 2013 sales decline below 6.6 percent

REPORT_ The Board of Directors of Geox, approving the 2013 financial results said its consolidated net sales decreased by below 6.6 percent or minus 5.6 percent at constant exchange rates to 754.2 million euros (1,045.1 million dollars). Footwear sales represented 87 percent with a 5.1 percent

decrease compared to 2012. Apparel sales accounted for 13 percent with a 15.6 percent decrease.

Sales in Italy, the group’s main market, which accounted for 32 percent of sales showed a 16.1 percent decrease. Sales in Europe, which accounted for 44 percent of sales declined by 3.8 percent, North American sales decreased by 2.5 percent, but sales in other countries increased by 5.6 percent. In 2013, sales of the DOS channel, which represent 38 percent of group revenues, grew 22 percent.

Commenting

on the results, Mario Moretti Polegato, Chairman and Founder of Biadene di Montebelluna headquartered Geox, said, “As announced previously, 2013 was a year of considerable change for Geox, with the introduction of a new management team and the definition of the 2014-2016 strategic plan, which was presented to the financial community last November. Apart from maintaining our leadership positions in Europe and to develop new markets in Eastern and Northern Europe, Geox intends to increase its presence, thorough rapid expansion, in countries such as China, Hong Kong and the Far East in general.”

2013 results have been characterized by a tough macroeconomic environment which particularly affects the Mediterranean area. Comparable store sales of the DOS channel decreased by 3 percent in 2013 versus the same period of prior year. Sales of the franchising channel, which account for 19 percent of group revenues decreased 20.7 percent.

As of December 31, 2013, the overall number of Geox Shops was 1,299 of which 450 DOS. During 2013, 215 new Geox Shops were opened and 128 have been closed. New openings 2013 include shops in Beijing, Shanghai and Hong Kong.

For 2014, management's assumptions lead to an estimated increase in sales to 800 million euros (1,108.6 million dollars) with the operating result (EBIT) returning to break-even. With regard to the first half, turnover is assumed to be substantially stable with an expected positive performance by the mono-brand channel, which should offset the expected weakness of the wholesale channel that as forecasted could lead to a pressure on EBIT compared with the same period last year.