Geox S.p.A.

First-quarter 2026 sales were EUR 165 million, down EUR 23 million, or 12.5%, versus the same period last year; on a comparable basis the decline was about 10% to 10.3% after perimeter changes. Wholesale physical sales were EUR 68 million, down 8%; wholesale web sales were EUR 11 million versus EUR 36 million a year earlier; and retail sales were EUR 36 million versus EUR 61 million. Management said operating cost savings of about EUR 10 million in the quarter helped lift adjusted EBITDA above budget, and it reiterated full-year guidance for an adjusted EBIT margin of approximately 2% to 3% and bank debt of about EUR 60 million to EUR 70 million by year-end. Working capital was EUR 140 million at March 2026 versus EUR 135 million at December 2025 and EUR 144 million at March 2025; inventory was EUR 160 million versus EUR 205 million a year ago.

Francesco Di Giovanni framed the quarter as a transition period where weak traffic and a tough retail environment hurt top-line results, but restructuring and cost discipline are starting to show through. He emphasized that Geox is not relying only on cost cuts: the company is re-centering strategy on R&D, innovation, and a faster product cycle, including a new Spring-Summer 2027 collection designed with an external studio. His tone was cautious but constructive, repeatedly stressing prudence amid geopolitical uncertainty and the need to protect margins while rebuilding the brand’s product appeal.

Andrea Maldi highlighted that the quarter’s EUR 165 million in sales was down 12.5% year over year, with channel mix and geography both reflecting softer traffic and the cleanup of unprofitable digital and off-price activity. He said working capital was EUR 140 million, inventory stood at EUR 160 million, and the company has improved inventory quality versus last year. He also said Geox expects to confirm the adjusted EBIT margin target and sees bank debt ending 2026 in the EUR 60 million to EUR 70 million range, helped by production, inventory, and working-capital optimization; he added that CapEx had been discussed around EUR 50 million, with some spending likely trimmed and more directed toward tools for the new collection and digital development.

Analysts asked about current trading, category performance, CapEx, and whether the product strategy needs structural changes. Management said April trading through mid-month looked broadly similar to Q1, with traffic still down around 8%, but digital performance was positive on a like-for-like basis at about 10% growth, while women’s assortment remained a weak spot and men’s performed well. On CapEx, management said investments are being reconsidered, with less emphasis on direct retail and more on IT, digital, communication, and the new collection process; on product strategy, Di Giovanni said the new external design approach is meant to shorten time to market from roughly 18-24 months and improve competitiveness.