The Board of Directors of Geox S.p.A., the Italian company leader in the classic and casual footwear market listed on the Milan Stock Exchange (MSE: GEO.MI), approved today the financial results for year ending December 31, 2007. The Board of Directors approved also the Strategic Plan for 2008, 2009, 2010.
Mario Moretti Polegato, Chairman and founder of Geox commented: "The results achieved by the Geox Group in 2007 are further confirmation of the strong potential of our brand, the success of our patent and the solidity of our business model.
With 2007 we close three years of rapid expansion of the Group, both on the domestic market and, above all, on the European market, a phase that began when the Group was listed on the Milan Stock Exchange in December 2004.
Today Geox is ready to face a new round of expansion, which will lead to a consolidation of our leadership in Europe as well as considerable international growth; this is an objective that we intend to pursue above all by enlarging the network of Geox Shops, which should reach a total of more than 1,500 in 2010.
So over the next three years we expect to see sales growth remain strong, at around 20% per year on average. Finally, considering the very good results of FY 2007 we have decided to further increase our dividend pay out ratio from 40% to 50%”.
THE GROUP’S ECONOMIC PERFORMANCE:
Sales:
Consolidated sales increased 26% (27% at constant exchange rates) to Euro770.2 million. Footwear sales represented 93% of consolidated sales, amounting to Euro 715.8 million, with a 25% increase compared to 2006. Apparel sales accounted for 7% of consolidated sales equal to Euro 51.8 million, showing a 53% increase.
Italy remains the Group’s main market accounting for 38% of sales (43% in 2006) equal to Euro 294.5 million, a 11% increase.
Europe (excluding Italy) generated 44% of sales (43% in 2006) amounting to Euro 342.3 million, a 30% increase. The USA reported an increase in sales of 28% (40% at constant exchange rates) and the Other countries reported an increase in sales of 70% (74% at constant exchange rates).
Analyzing sales by distribution, the Geox Shop channel (franchising and DOS) showed significant growth, with sales up 38% compared to 2006. At the end of December 2007, this channel represented 29% of sales. In 2007, sales of DOS (Directly Operated Stores) opened for at least 12 months (comparable store sales) increased 15%.
Multibrand shops still represent the Group’s main distribution channel, accounting for 71% of sales compared to 74% for 2006, 21% growth.
In Italy the multibrand channel generated 61% of sales, for a total of Euro 178.7 million, a 6% increase. The Geox Shop channel accounted for the remaining 39% of domestic sales (a total of Euro 115.8 million, up 20%).
In Europe (excluding Italy), the multibrand channel represented 80% of sales (a total of Euro 272.5 million, up 24%). The Geox Shop channel reported sales of Euro 69.4 million, a 58% increase.
As of December 31, 2007 the overall number of Geox Shop was 724 (of which 579 were franchising and 145 DOS). During 2007, 207 new Geox Shops were opened, of which 38 in Italy, 75 in Europe and 4 in the USA. The new openings include, among others, shops in: Rome, Milan, Wien, Paris, Bonn, Frankfurt, Moscow, New York, San Francisco, Los Angeles, Toronto, Tokyo, Hong Kong and Singapore.
