Geox's forecast comes amid relentless global uncertainty and volatility, which the brand said “significantly impacts” market conditions and consumer buying decisions.
The company anticipates a high single-digit decline in 2025 sales compared to 2024.
However, it anticipates that cost containment actions will help keep the adjusted EBIT margin on target with prior plans.
The company projects bank debt to be between €100m ($116.10m) and €110m.
Geox said: “Given the persistent uncertainty and volatility of the international context, which continues to significantly affect market dynamics and consumer behaviour, all forward-looking statements and estimates regarding the group’s performance and its reference market remain subject to the instability of the current geopolitical, economic, and inflationary environment.”
Key metrics from Geox’s FY25 9M result
Consolidated sales for the first nine months of FY25 stood at €492.8m, a 6.2% decrease from the same period in 2024. The drop was 3.8% excluding the impact of the closure of the subsidiaries in China and the US.
Geox chief executive officer Francesco Di Giovanni said: “Geox reports a 3.8% decline in sales compared to the same period last year on a like-for-like basis. Market conditions and overall consumer dynamics continue to affect sector demand, which remains in significant contraction. I believe it is important to highlight, however, that our direct retail channel delivered comparable sales substantially in line with the previous year.”
Retail sales of Geox saw a decline of 1.9%, with the company's direct retail channel maintaining sales levels comparable to the previous year, while wholesale channel and web sales dropped 6.3% and 11.5% respectively.
Regionally, Italy accounted for 29.0% of total group sales, and Europe sales represented 47.7%.
Sales in other countries fell by 19.7%, impacted by geopolitical tensions and the closure of operations in China and the US.
Strategic cost management and financial position
In response to ongoing uncertainty and volatility in the international landscape, which impacts market dynamics and consumer behaviour, Geox has focused on strategic cost management, achieving a cost reduction of approximately €20m, which contributed to an improved adjusted EBIT margin.
The company's net financial position was reported at -€119.0m, reflecting effective financial management despite the sales downturn.
Geox's operating net working capital stood at €161.4m, consistent with seasonal business dynamics, while inventory levels were significantly reduced due to enhanced management efficiency.
