GEOX S.P.A. PRESS RELEASE - REVENUES FOR THE FIRST QUARTER OF 2017
+1.2% INCREASE IN REVENUES DRIVEN BY A POSITIVE PERFORMANCE OF THE WHOLESALE CHANNEL, UP 6.3%, AND ONLINE SALES, WHICH GREW BY MORE THAN 30% +8% INCREASE IN ORDER BACKLOG RECORDED BY THE WHOLESALE CHANNEL FOR THE 2017 FALL/WINTER SEASON Biadene di Montebelluna, 10th May 2017 - Geox S.p.A., a leading brand in classic and casual footwear, listed on the Milan Stock Exchange (MSE: GEO.MI), today analysed its consolidated revenues for the first quarter of 2017.Mario Moretti Polegato, Chairman and founder of Geox, commented: "I am satisfied with the results achieved by Geox Group in the first quarter. Revenues increased by 1.2%, thanks to the positive performance of the wholesale channel which recorded a growth of 6.3%. This growth was particularly driven by the excellent performance in Russia, Eastern Europe and China and by the e-commerce channel, which grew by more than 30%.
The wholesale channel is also showing solid growth in terms of order backlog for the upcoming 2017 Fall/Winter season, up +8%. This is thanks to overall good performance across all geographical areas, with the expected increase in margins also being confirmed.
With regard to mono-brand channel, the planned optimization of the stores network is underway. Furthermore, the growth in comparable store sales (+1.6%), our strong focus on operating efficiency, the rationalization of the products offer and tight cost control are also generating the results we expected in terms of profitability.
These results clearly confirm the strength and effectiveness of our strategic choices, which focus on solid and profitable growth. I am therefore confident that the Group will achieve positive results this year, with profitability in line with our expectations".
FIRST QUARTER 2017 SALESFirst quarter 2017 consolidated net sales increased by 1.2% to Euro 297.9 million (+0.1% at constant forex). Footwear sales, which accounted for about 90% of consolidated sales, amounting to Euro 267.4 million, increased 0.8% compared to first quarter of 2016 (-0.2% at constant forex). Apparel sales, which represented 10% of consolidated sales, equal to Euro 30.5 million, compared to Euro 29.1 million of the first quarter 2016 (+4.5%; +2.8% at constant forex).
(Thousands of Euro) | I Quarter 2017 | % | I Quarter 2016 | % | Var. % |
Footwear | 267,429 | 89.8% | 265,191 | 90.1% | 0.8% |
Apparel | 30,461 | 10.2% | 29,147 | 9.9% | 4.5% |
Net sales | 297,890 | 100.0% | 294,338 | 100.0% | 1.2% |
Revenues generated in Italy, the domestic market representing 33% of Group revenues (34% in the first quarter of 2016), are in line with the first quarter of 2016: the planned optimization of mono-brand distribution was offset by the growth recorded by the wholesale channel.
Revenues generated in Europe, representing 42% of Group revenues (44% in the first quarter of 2016), amount to Euro 126.1 million, compared to Euro 128.5 million in the first quarter of 2016, recording a decline of 1.9% (-2.0% at constant forex). This performance is explained by the planned rationalization of mono-brand stores, partially offset by the positive performance of the wholesale channel and growth in LFL sales recorded by both directly operated and franchised mono-brand stores.
North America recorded a turnover of 14.5 million, down 1.2 million (-7.8% at current forex and -13.0% at constant forex), mainly as a result of the Canadian market.
A 14.2% growth in turnover was recorded in the Rest of the World compared with the first quarter of 2016 (9.6% at constant forex), with solid results across all markets with the exception of Hong Kong. This growth was particularly driven by the excellent performance in Russia, Eastern Europe and China.
(Thousands of Euro) | I Quarter 2017 | % | I Quarter 2016 | % | Var. % |
Italy | 99,748 | 33.5% | 99,728 | 33.9% | 0.0% |
Europe (*) | 126,050 | 42.3% | 128,462 | 43.6% | (1.9%) |
North America | 14,461 | 4.9% | 15,681 | 5.3% | (7.8%) |
Other countries | 57,631 | 19.3% | 50,467 | 17.1% | 14.2% |
Net sales | 297,890 | 100.0% | 294,338 | 100.0% | 1.2% |
(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland. | |||||
Revenues generated by directly-operated stores, DOS, representing 29% of Group revenues, amount to Euro 85.9 million, recording a decline of 2.1% (-3.2% at constant forex). As already reported, this performance is due to the planned rationalization of the mono-brand store network, whereas like-for-like sales of stores that have been open for at least 12 months (comparable store sales) reported a growth of
+1.6% (+3.2% in the first quarter of 2016), with positive performance in all of the group's main markets.
Comparable sales generated by directly operated stores to date (week 1 - week 17) report a growth of 1.2% (compared with the 1.1% growth recorded in the same period last year). Following a sales period (January and February), when sales were substantially stable despite a challenging comparison base, like-for- like sales in March and April have recorded an overall increase of +3%.
Sales of the franchising channel, which account for 18% of Group revenues, amount to Euro 53.6 million, reporting a decline of 6.9% (-7.7% at constant forex). The performance of the franchising channel is also explained by the planned rationalization of the store network, whereas comparable sales recorded a slight decline, which is the result of performance during the January sales due to a difficult comparison base.
Wholesale stores representing 53% of Group revenues (51% in the first quarter of 2016) amount to Euro
158.4 million, with an increase of 6.3% (+5.1% at constant forex).
(Thousands of Euro) | I Quarter 2017 | % | I Quarter 2016 | % | Var. % |
Wholesale | 158,425 | 53.2% | 149,006 | 50.6% | 6.3% |
Franchising | 53,552 | 18.0% | 57,536 | 19.5% | (6.9%) |
DOS* | 85,913 | 28.8% | 87,796 | 29.8% | (2.1%) |
Geox Shops | 139,465 | 46.8% | 145,332 | 49.4% | (4.0%) |
Net sales | 297,890 | 100.0% | 294,338 | 100.0% | 1.2% |
* Directly Operated Store | |||||
As of March 31, 2017, the overall number of Geox Shops was 1,134 of which 451 DOS. During the first quarter of 2017, 17 new Geox Shops were opened and 44 have been closed, in line with the rationalization plan of the DOS network.
03-31-2017 | 12-31-2016 | 1° Q 2017 | |||||
Geox | of which | Geox | of which | Net | Openings | Closings | |
Shops | DOS | Shops | DOS | Openings | |||
Italy | 340 | 130 | 352 | 129 | (12) | 3 | (15) |
Europe (*) | 332 | 173 | 346 | 173 | (14) | 1 | (15) |
North America | 47 | 47 | 48 | 48 | (1) | 1 | (2) |
Other countries (**) | 415 | 101 | 415 | 105 | - | 12 | (12) |
Total | 1,134 | 451 | 1,161 | 455 | (27) | 17 | (44) |
(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.
(**) Includes Under License Agreement Shops (157 as of March 31, 2017, 156 as of December 31, 2016). Sales from these shops are not included in the franchising channel.
Geox S.p.A. published this content on 10 May 2017 and is solely responsible for the information contained herein.
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