ITALY: Geox net income dips 19% in Q1
- Q1 net income of EUR43.4m, down from EUR53.6m
- Sales reach EUR345.4m, from EUR333.1m in Q1 last year
Italian footwear retailer Geox has reported a dip in first quarter earnings despite higher sales, forecasting margin pressures ahead.
The company said that raw material prices and labour costs in supplier countries suggested that gross margin will come under pressure in the first half of 2011.
Geox said that while the factors will persist in the second half of 2011, steps taken in product mix, channels, prices and cost reductions will help protect margins.
Mario Moretti Polegato, chairman and founder of Geox, said: “We are satisfied with the way this year has begun, both for the first quarter results which are in line with expectations, and above all for the Fall/Winter 2011 order backlog of our multibrand and franchising stores network, which is showing a solid growth of 8%.
“We have seen a good acceleration in orders coming from emerging markets, Russia and other Eastern European countries, but we are also pleased with the volume of orders that we are receiving from more consolidated markets, like Italy, and certain European countries.”
Click here to view Geox’s first quarter results in full.
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