Italy's Geox 9-month sales fall 11.7% on weak demand

Overview

• Italy footwear and apparel maker's 9-month 2026 sales fell 11.7% yr/yr amid weaker demand

• Company maintained its FY2026 guidance

• Operating working capital improved due to inventory and procurement efficiency initiatives

Outlook

• Company says it faces a challenging and contracting market environment

• Geox confirms FY2026 guidance, with results expected at the lower end of indicated ranges

• Expects SS27 to feature its first collection from a collaboration with a globally renowned design studio

Result Drivers

• WEAK WHOLESALE ORDERS AND RETAIL TRAFFIC – Nine-month sales fell 11.7% to €435.0 mln, with Wholesale B&M and Web following weaker SS26 and FW26 campaigns while Retail fell 9.9% on lower store traffic

• INVENTORY AND PROCUREMENT OPTIMIZATION – Nine-month operating working capital fell to €110 mln from €161.4 mln yr/yr, which Co said benefited from procurement and inventory management optimization

• CAPITAL INCREASE AND CASH GENERATION – Net financial position improved to -€49.7 mln from -€92.6 mln at Dec. 31, reflecting a €21.4 mln capital increase and €21.5 mln cash generation

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

• The average consensus recommendation for the footwear peer group is "buy."

• Wall Street's median 12-month price target for Geox SpA is €0.28, about 0.7% above its November 9 closing price of €0.28

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 173 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)