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Geox FY15 net sales rise 6 percent, improves profitability

By Prachi Singh

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Business |REPORT

Geox announcing its 2015 financial results said that consolidated net sales increased by 6.1 percent to 874.3 million euros (965.1 million dollars). EBITDA was 61.8 million euros (67.5 million dollars), 7.1 percent of sales, compared to 42.6 million euros (46.5 million dollars) of 2014.

“I am satisfied with the results achieved in 2015, with Geox recording a growth in revenues and an increase in profitability. Given this, we have formalized the company’s strategy in a newly developed 2016-2018 Strategic Plan, which will address the initiatives we intend to implement to achieve solid and sustainable growth, profitability and cash flows,” said Mario Moretti Polegato, Chairman and Founder of Geox.

Segment-wise sales performance

Footwear sales represented 90 percent of consolidated sales, reported a 8.8 percent increase compared to 2014. Apparel sales accounted for 10 percent of consolidated sales. Sales in Italy, the Group’s main market witnessed a 3.1 percent increase and sales in Europe, which accounted for 43 percent of sales increased by 4.6 percent. North American sales increased 13.1 percent or 2.8 percent at constant exchange rates and sales in Other Countries increased by 13.1 percent or 5.8 percent at constant exchange rates compared to 2014.

In 2015, sales of the DOS channel grew 9.5 percent mainly driven by new openings and by comparable store sales growth recorded on DOS channel of 4.2 percent. Sales of the franchising channel, decreased 4.4 percent due to the effect of closing of shops not in line with the expected profitability standards which has been partially offset by the positive trend in comparable store sales at locations that have been opened for at least 12 months that reported a 3.9 percent rise. Multi-brand stores reported an increase of 7.2 percent with good performance in the second half. As of December 31, 2015, the overall number of Geox Shops was 1,161 of which 476 were DOS. During 2015, 121 new Geox Shops were opened and 185 were closed.

The Board of Directors has decided to propose to the Shareholders' Meeting the distribution of a dividend of 0.06 euro (0.07 dollar) per share for a total amount of 15.6 million euros (17 million dollars).


Geox