A very bad half-year for Geox. At the end of the first six months of the year, the revenues of the group, headquartered in Veneto, have decreased by 39%. In terms of value, earnings have reached 243.6 million euros. Reasons for such negative figures, it comes as no surprise, lie in Covid-19 outbreak and “temporary closures” of all the group’s stores, imposed by the pandemic.
A very bad half-year for Geox
Geox financial situation, on 30 June 2020, turns out to be rather negative, as loss amounts to 88.8 million euros: last year, on 30 June 2019, loss amounted to 30.8 million euros.
The company considers it as a sound standing anyway. In fact, as they also emphasized, “we believe that credit lines, on which we can currently rely, are suitable for handling the present emergency and dealing with investments in the next three years”.
In other words, pointed out Geox, “our financial and patrimonial situation is sound”. In the meantime, the group’s global network of direct stores is actively running; besides that, e-commerce sales are enjoying a positive and rewarding performance. In fact, at the end of the first half-year period, online sales increased by 40%. Looking at the second quarter only, they have been rising by 59%.
“Our selling stores have been enjoying positive results until the beginning of February”, commented Mario Moretti Polegato, president and founder of Geox (left, in the Imagoeconomica picture). Moreover, “CRV had, and keeps having, a few remarkable repercussions, on a worldwide scale, in health, economic and social terms.
According to the most important market players, the GDP (Gross Domestic Product) will expectedly decrease, on a global scale, by over 3% throughout 2020. Actually, the pandemic is bringing about an unprecedented situation, which will undoubtedly create a clear discontinuity with the past, both for buyers and for businesses.
On top of that, it will also make things change faster, as they were already changing prior to the crisis. Innovation, sustainability and digital experience are going to become more and more important for companies aiming to meet the demand of a highly discerning and selective clientele.
While dealing with such exceptional circumstances, Geox is fully aware of difficulties and changes currently underway – wrapped up the manager –. We are paying close attention to potential opportunities arising from the situation. Our group, whose position is as sound as outstanding, will grab them”.