This article first appeared on GuruFocus .
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Net Sales:EUR 608.7 million, a decline of 8.3% year-over-year.
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EBITDA Adjusted:EUR 24.8 million, slightly down from EUR 26.2 million in 2024.
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EBIT Adjusted:EUR 9 million, consistent with 2024.
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Net Loss:Reduced to EUR 16.2 million from EUR 30.3 million in 2024.
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Bank Debt:Reduced by over EUR 10 million to EUR 92.6 million.
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Net Working Capital:EUR 135.7 million, representing 22.3% of net sales.
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Gross Margin:Stable at 51% compared to the previous year.
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Wholesale Sales Decline:EUR 17.9 million, with negative performance in Italy, France, Iberia, and Russia.
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Retail Sales Decline:Down 3.3% year-over-year.
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Digital Channel Performance:Own website like-for-like sales increased by 4.6%.
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Store Network Changes:Net closure of 5 DOS, mainly in Hong Kong.
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Release Date: March 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Geox SpA ( STU:GHH ) successfully reduced net losses from EUR30 million in 2024 to EUR16 million in 2025.
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The company significantly decreased its bank debt by approximately EUR10 million, bringing it down to EUR92 million.
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Geox SpA ( STU:GHH ) implemented a thorough revision of its operating model, leading to a reduction in the cost base and improved efficiency.
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The company is leveraging its R&D and technological innovation capabilities, with new patented products contributing positively to the 2025 turnover.
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Geox SpA ( STU:GHH ) has partnered with a globally renowned design studio to enhance creativity and stylistic viability, particularly for the women's collection.
Negative Points
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Net sales declined by 8.3% compared to the previous year, with a significant impact from the winding down of operations in China and the U.S.
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The wholesale channel experienced a decline of EUR17.9 million, particularly in key markets like Italy, France, and Russia.
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Retail sales were down 3.3% year-on-year, with brick-and-mortar like-for-like performance declining by 1.8%.
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The company faced a decrease in traffic, impacting sales, attributed to overall economic conditions and global conflicts.
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Geox SpA ( STU:GHH ) anticipates a further decline in sales for 2026, expecting a low single-digit decrease compared to 2025.
Q & A Highlights
Q: Do you expect the gross margin to stabilize at the 2025 level? A: Andrea Maldi, CFO, stated that they forecasted an improvement of the gross margin by about 110 basis points, mainly due to channel mix. However, given current trading conditions, they aim to maintain the margin flat compared to 2025.
Q: Can you provide an update on the performance in January and February across different channels? A: Andrea Maldi, CFO, reported that the direct-to-consumer market, particularly brick-and-mortar, is down 5% to 6% as of week 10, while outlets are down 16.6%. Digital channels are performing well, with a double-digit increase of over 10%. Wholesale is down 18% due to the decline in spring/summer 2026 orders.
Q: What cost control measures are in place if sales deteriorate more than expected? A: Andrea Maldi, CFO, highlighted their success in cost control over the past two years, particularly in 2025. They plan to reduce the overall cost structure by about EUR60 million in 2026 and are prepared to take further actions on indirect costs if necessary.
Q: How is the company addressing the decline in traffic and sales? A: Francesco Di Giovanni, CEO, mentioned that the decline in traffic is due to overall economic conditions. They plan to launch a new communication campaign to recover traffic and customer attention, especially for the spring/summer collection.
Q: What are the expectations for 2026 and beyond? A: Francesco Di Giovanni, CEO, stated that 2026 is a transition year, with some benefits of the new commercial strategy expected to materialize later. They aim to confirm the results anticipated in the 2026 budget and provide more clarity with a refreshed business plan by mid-2026.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
