Geox S.p.A.

Geox reported first-quarter 2026 sales of EUR 165 million, down EUR 23 million or 12.5% versus the prior year; on a comparable basis, sales were down about 10.3% after excluding the impact of store closures and unprofitable digital channels. Wholesale physical was EUR 68 million, down 8% from EUR 74 million, wholesale web was EUR 11 million versus EUR 36 million a year earlier, and retail was EUR 36 million versus EUR 61 million. Management said operating cost savings were about EUR 10 million in the quarter, which helped produce adjusted EBITDA higher than budgeted. For 2026, the company reaffirmed its forecast for adjusted EBIT margin of approximately 2% to 3% and said bank debt should end the year in the range of about EUR 60 million to EUR 70 million.

Francesco Di Giovanni said the company is using 2026 as a transition year and is focusing on both cost discipline and rebuilding the top line. He emphasized a renewed push into R&D, faster product development, and a new Spring-Summer 2027 collection that will be shown to the sales force next week, with the goal of shortening time to market and refreshing the brand offer. He sounded cautious on the macro and geopolitical backdrop, saying further deterioration could hurt top-line performance, but he also framed the strategy as one of prudent growth in higher-margin products and channels.

Andrea Maldi highlighted that sales were EUR 165 million and that the comparable decline was around 10% after perimeter effects. He broke down the weakness by channel: wholesale physical at EUR 68 million, wholesale web at EUR 11 million, and retail at EUR 36 million, with retail hurt by traffic down roughly 8% and wholesale web hit by Russia-related weakness and off-price cleanup. He said working capital was EUR 140 million versus EUR 135 million at December 2025 and EUR 144 million a year earlier, while inventory improved to EUR 160 million from EUR 205 million. He reiterated the 2026 targets for adjusted EBIT margin and bank debt of EUR 60 million to EUR 70 million, and said some CapEx will be trimmed while more investment is directed to collection development and digital tools.

Analysts asked about current trading, category performance, CapEx, and whether product strategy needs more structural change given the tougher macro. Management said April trends through mid-month were broadly similar to Q1, with traffic still down around 8%, while own digital performance was stronger, including like-for-like website growth of about 10%. On product mix, Francesco said men’s performed reasonably well, women’s has been weak for several seasons, and some collaborations have underperformed; he also said the new collection will be more differentiated between wholesale and retail. On CapEx, management indicated a range around EUR 15 million to EUR 20 million for hard assets, with about EUR 35 million to EUR 40 million including marketing, and said the mix is shifting toward IT, digital capability, and communication rather than direct retail expansion.