Geox S.p.A., the Italian footwear brand, reported sales totaled €165.3 million ($193mm) in the first quarter, down 12.5 percent on a reported basis and 12.6 percent at constant exchange rates.

Wholesale channel sales decreased 8.1 percent at current exchange rates (-7.8 percent at constant exchange rates) to €68.6 million. Geox said the performance reflects a lower order intake for its spring/summer collection compared to the previous year, across all major markets.

Retail channel sales amounted to €56.3 million, declining 8.1 percent at current exchange rates (-8.2 percent at constant exchange rates). About €1.8 million of the decline was due to store closures while about €3.5 million was due to lower store traffic. The number of directly-operated stores declined from 240 in March 2025 to 233 in March 2026, while the number of franchised point- -of-sales declined from 126 to 100 over the same period.

Sales generated through digital channels fell 23.8 percent to €40.4 million compared to the first quarter 2025. The positive performance of the owned website did not offset the lower orders from the third-party e-commerce sites and marketplace platforms. Geox noted that it saw a positive like-for-like performance, which increased by 8.8 percent and partially mitigated the negative trend in the digital channel.

Other highlights of the report:

  • Operating working capital at €140.8 million in line with seasonal dynamics (€135.7 million as of December 31, 2025; €144.6 million as of March 31, 2025) and representing 24.1 percent of last twelve months’ sales.
  • Net financial position (pre-IFRS 16 and fair value adjustments of hedging instruments) at €-106.5 million (€-92.6 million as of December 31, 2025; €-108.6 million as of March 31, 2025).
  • For FY2026 the adjusted EBIT margin is expected to be in line with plan expectations, and bank debt to range between €60-70 million, also supported by the planned optimization of inventory management and working capital cash flows, despite a decline in sales compared to the previous year (mid to high single digit).

Francesco Di Giovanni, CEO, commented: “The first quarter 2026 recorded a 12.5 percent sales decline compared to the same period of last year, that affected all sales channels and all geographic areas. On a comparable basis, specifically excluding the impact of the closure of the stores and certain non-profitable channels, the decline was 10.3 percent. This trend was certainly influenced by unfavorable market conditions and the overall consumption dynamics that continue to affect sector demand, which remains in significant contraction. While the performance of the Wholesale B&M and Web channels was expected, being in line with the trend of SS26 sales campaign, the performance of the Retail channel was below expectations, showing a decline of 8.1 percent, mainly due to a significant and widespread drop of store traffic. This trend, which began in the second half of 2025 and can be observed across the entire sector, has intensified in the first months of the current year.

“Despite the decrease in sales, the rationalization and cost efficiency measures, mainly implemented during the second half of 2025, have generated savings in the operating cost structure for around €10 million. These actions enabled us to achieve, in the first quarter, an adjusted EBIT higher than Budget expectations, and give us confidence that the Group will be able to confirm the forecasts set out in the Budget approved in December, both in terms of operating margin (adjusted EBIT margin equal to 2-3 percent) and of reduction in bank debt compared to 2025; we expect, indeed, the bank debt to settle in the range of €60-70 million by the end of the current year, also supported by the planned optimization of production, inventory management and working capital cash flows.

“I believe it is important to emphasize that focusing on industrial processes and cost containment is not the only leverage that management is pursuing, although it is essential in order to enable the Group, even under unfavorable market conditions, to invest in its future. Geox, leveraging its expertise and technological innovation capabilities, which have always defined the brand’s heritage and value and have been brought back to the center of the Group’s research and development strategy, as well as its commercial and marketing activities, is preparing to launch revolutionary solutions, initially targeted at its own retail network.

“Over the past months of intensive work, new products have been developed, whose style, combined with the technological content of Geox product, has been entrusted to a globally renowned design studio which is an international benchmark in footwear design. The SS27 season will feature the first collection resulting from this collaboration, which has brought renewed creative and stylistic energy to Geox brand offering.

“In an increasingly complex global environment, marked by conflicts and instability, we continue to closely monitor recent market developments. Although these events do not have a direct impact on our operations, we believe they may contribute to further deterioration of the geopolitical landscape and, consequently, of our reference market. For this reason, we consider it essential to maintain a prudent approach, focused on growth in higher-margin markets, the continuous optimization of processes, and cost containment.”

Image courtesy Geox