Italian comfort shoe brand Geox reported 2022 consolidated sales (preliminary) totaled €735.5 million, up 20.8 percent versus the previous year (+17.8 percent at constant-currency rates), due primarily to the strong performance across all the main distribution channels.

Geox also reported a strong Q4 performance, with sales of €166 million (growth of 14 percent versus Q4 2021), thanks to the full return of supply chain reliability, which management said enabled them to “fully satisfy customer product delivery demand.”

Multi-brand store sales, accounting for 50.2 percent of company sales (50.3 percent in 2021), amounted to €369.5 (+20.7 percent at current exchange rates, +17.5 percent at constant-currency rates), compared to €306.3 million in 2021. This result reportedly benefited from “buoyant SS22 and FW22 collection orders and a number of early shipment requests from customers,” allowing Geox to “significantly improve transport conditions and the supply chain in the final part of the year and significant in-season restocking.”

Franchising channel sales, accounting for 9 percent of the company total, amounted to €63.6 million (+47.4 percent on 2021). The performance benefited from the gradual reopening of stores, together with the favorable timing of shipments. Total franchising sales points decreased from 304 stores in December 2021 to 294 stores in December 2022.

Directly-operated store (DOS) sales accounted for 41 percent of the company total, amounting to €302.4 million, compared to €259.5 million in 2021 (+16.5 percent at current exchange rates and +13.8 percent at constant-currency rates). Comparable store sales were up 18 percent, thanks both to the re-opening of all stores in the second half of 2021 (in 2021 approximately 14 percent of direct stores were temporarily closed due to pandemic restrictions) and the gradual roll-out of the 2022-2024 Strategic Plan initiatives. Physical stores in particular reported an increase in comparable sales of approximately 27 percent versus 2021, while the online channel saw a decline of approximately 13 percent (as a result of the stabilization of performances following the lockdowns).

Direct online channel growth was said to be particularly strong (approximately +63 percent) over 2019. The uptick in COVID-19 infections in April in Asia resulted in a temporary closure for approximately two months of 19 directly-operated stores in Shanghai.

Finally, in terms of the distribution scope, the number of DOS decreased from 350 stores in December 2021 to 315 in December 2022. This reduction was the main cause of the overall trend in channel sales, which despite an increase in comparable sales of 18 percent, reported in the period performance at +16.5 percent.

Sales generated in Italy, representing 26.5 percent of company revenues (25.3 percent in 2021), amounted to €194.8 million (+26.6 percent), compared to €153.8 million in 2021. Sales were driven by the directly-operated stores (+23 percent) and the franchising channel (+79 percent) and were supported also by the gradual reopening of the distribution network. The wholesale channel also returned an excellent performance (+21 percent).

Sales generated in Europe, accounting for 44.6 percent of company revenues (45.7 percent in 2021), totaled €327.9 million, compared to €278.3 million in 2021, up 17.8 percent and mainly due to (as in Italy) the strong retail channel performance. Stores in Europe report comparable sales growth of 19 percent. The franchising performance (+50.7 percent) was also strong.

North America represented sales of €30.3 million, +12.8 percent (+3.0 percent at constant-currency rates) on 2021. The direct stores performed well (+20 percent), while the wholesale channel (+2 percent) was impacted by the cancellation of a number of orders due to supply chain difficulties (production and/or shipment delays).

The Other Countries reported revenue growth of 21.7 percent in 2021 (12.6 percent at constant-currency rates). Specifically, Asia/Pacific sales were up 6 percent, thanks to the strong Q4 performance (+23 percent) which largely offset the impacts from the reorganization in Japan, resulting in the branch’s closure and the transfer of the business to a
distributor.

Eastern European sales however were up 25.8 percent. Direct stores for the entire area reported an increase in comparable sales of +15 percent. The wholesale and franchising channels also delivered growth.

Footwear sales of €663.1 million accounted for 90 percent of consolidated sales, up 21.2 percent (+18.4 percent at constant-currency rates) in 2021. Apparel accounted for 10 percent of consolidated sales, totaling €72.5 million, compared to €62.0 million in 2021 (+16.9 percent at current exchange rates, +12.4 percent at constant-currency rates).

Photo courtesy Geox