Italian footwear business Geox has seen its first-quarter profit more than halve after tough economic conditions in Europe dampened demand for its products.
Net income reached €19 million ($24.5 million) for the quarter to March 31, compared to €41.5 million in the same period last year. Sales tumbled 20.4% to €262.5 million from €330 million last year, with declines in all categories and markets.
The first quarter was affected by “the difficult macroeconomic situation of Mediterranean countries and in particular in Italy and Spain,” noted chairman and founder Mario Moretti Polegato.
“However, despite the uncertainty of the timing of the consumption recovery in Europe, we are confident that our strategy focused on investments in new products and on the gradual shift of our commercial activities towards emerging markets such as Asia Pacific and Russia, where our expansion is in rapid and positive evolution, represents the base for future development of the group and the relaunch of its growth.”
Looking forward, the company expects the uncertain economy to continue to weigh on turnover, and forecasts a decline of around 10% in first-half sales.
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