Geox approves 2027/29 industrial plan: revenues to reach up to 650 million euros in 2029

This week, the board of directors of Geox, a company listed on the Euronext Milan market, approved an update to the group's 2027-2029 industrial plan. The board also approved a technical change to the execution methods for any remaining balance due from Lir srl, as part of the financial manoeuvre defined on December 30, 2024.

Consolidated revenues for the current financial year are expected to be between 540-545 million euros

Specifically, a note states that the 2026 financial year is confirmed as the final year of the “strategy re-routing and performance improvement” phase. For the current financial year, consolidated revenues are expected to be in the range of 540-545 million euros. Despite the reduction in turnover compared to the original forecast in the previous industrial plan, approved on December 19, 2024, the ongoing cost rationalisation process allows the company to confirm its initial expectations for operating margin.

The adjusted EBIT margin is expected to be between 3-4 percent. The company also expects to improve its debt to the banking system, which is anticipated to be in the 40-50 million euro range by the end of the year. This is also thanks to the planned optimisation of inventory management and cash flows related to working capital.

The main strategic guidelines of the 2027-2029 industrial plan forecast revenue growth to approximately 640-650 million euros in 2029. This corresponds to a Compound Annual Growth Rate (CAGR) of between 5 percent and 6 percent for the 2026-2029 period. Profitability is also expected to see significant growth, with an Ebit margin of 6-7 percent anticipated in 2029.

Technology will also be a central element of the group's unique selling proposition, supported by significant investments in design. The note explains that design has been entrusted to “an internationally renowned studio that has brought new creative and stylistic energy starting from the spring/summer 2027 season, with particular attention to enhancing the womenswear collection and the brand's heritage”.

The plan includes positioning the brand as “well-tech” and consequently rebalancing the marketing spending mix, with a greater allocation of resources to content distribution over production. Also on the agenda is a strategic and operational rethink of purchasing and sales planning processes, aimed at reducing time to market and achieving more efficient working capital management.

The company aims to strengthen Geox's leadership by further improving product quality and value for money; developing iconic products; simplifying collections; and enhancing the ready-to-wear line as a lever to create an integrated, consumer-centric product ecosystem, the note reads. The plan also includes improving the operational excellence of the direct-to-consumer (D2C) channel, with a particular focus on CRM initiatives aimed at increasing traffic to physical stores and growing the online channel. The positioning of the ESG agenda is central to the company's strategy and culture.

Regarding the 60 million euro financial manoeuvre, Geox reported that a technical modification has been approved. This was requested by the controlling shareholder Lir and concerns the execution methods for any remaining contribution. The change does not entail additional financial needs or further contributions beyond those already planned and does not impact the 2027-2029 industrial plan.

Both the total amount of the contribution provided for by the financial manoeuvre, amounting to 60 million euros, and the deadline of October 15, 2026, for the final payment due from Lir remain unchanged. “The modification is purely technical, does not create any additional financial need for the company nor further contributions beyond those already provided for by the financial manoeuvre, and does not affect the forecasts of the 2027-2029 Industrial Plan,” the note specifies.