Profits and sales of Italian shoe manufacturer Geox have taken a big hit in 2012. Net profits amounted to 10 million euro (80% down from the 50 million euro in 2011), sales dropped by 9 percent to 807.6 million euro
Especially in Italy lower sales
The company's home market Italy took the hardest hit: sales went down 15.3 percent to 285.9 million euro. In the rest of Europe sales went down 8 percent to 341.9 million euro. In the United States sales rose by 2.7 percent, while the rest of the world had a minimal rise of 0.1 percent.
Geox says the results of 2012 are completely within their expectations: lower sales were expected as on the company's most important markets, such as Italy, Spain and Greece, the economic crisis is in full swing and purchasing power dropped significantly.
According to Mario Moretti Polegato, chairman and founder of Geox, the shoe manufacturer has positive expectations for developing markets such as Eastern Europe and China, which is why Geox invested heavily on those markets, opening over seventy stores. Over the next five years Geox will be opening more than a hundred locations of their own in China, and an extra 400 shops through partnerships.