Italian shoemaker Geox has revised its sales guidance for the year 2023, lowering it slightly for the second time. The company reported a 4.1% increase in preliminary sales for the first nine months of the year compared to the same period in 2022. Despite this growth, Geox now expects full-year sales growth in the low to mid single digits at constant exchange rates, down from the previous guidance of 4% to 6% year-on-year.

Despite the adjustment in sales guidance, Geox is anticipating an increase in its full-year gross margin. The company forecasts a growth of 250-300 basis points, up from the previous forecast of 220-240 basis points. This positive outlook for gross margin is an encouraging sign for Geox.

The reason behind the lower sales guidance is attributed to abnormal weather conditions in May and September, which resulted in a slowdown in sales performance. This highlights the influence of changing weather trends on consumer behavior and purchasing decisions. To combat this, Geox plans to rely more heavily on its best-selling products and marketing strategies to ensure sustained sales growth.

In line with its efforts to strengthen its position in the market, Geox recently appointed Penelope Cruz as a global ambassador in September. This move is aimed at tapping into the potential of the women’s market and enhancing brand visibility. By partnering with a well-known personality, Geox hopes to appeal to a wider customer base.

Furthermore, Geox announced the appointment of Andrea Maldi as the new chief financial officer, effective from December 4th. This management change is expected to bring fresh perspectives and expertise to the company’s financial operations.

Geox’s total sales for the January-September period reached 582 million euros ($623.3 million), compared to 569.1 million euros in the previous year. Though the sales growth may not meet the company’s initial targets, Geox remains optimistic about improving margins and adapting to market challenges.

Despite facing headwinds such as abnormal weather conditions and changing consumer behaviors, Geox is committed to delivering quality products and expanding its market share. Through a focus on best-selling products and effective marketing strategies, the company aims to overcome these challenges and drive sustained growth in the future.

Useful links:
Geox Official Website
Geox on Business of Fashion