Geox (GEO) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales declined 12.5% year-over-year to €165.3 million, or 10.3% on a comparable basis, with all channels and regions affected by weak demand and lower store traffic.

• Retail channel underperformed expectations, with traffic down 8.8% and like-for-like sales down 8.6%.

• Wholesale and web sales were weak, with web performance only partially offset by owned website growth (+8.8% like-for-like).

• Cost efficiency initiatives yielded €10 million in quarterly savings, supporting adjusted EBITDA/EBIT above budget.

• Management remains focused on R&D, innovation, and process optimization, launching new collections and leveraging external design expertise.

Financial highlights

• Net sales for Q1 2026 were €165.3 million, down 12.5% year-over-year, with all channels and regions experiencing negative growth.

• Adjusted EBITDA/EBIT margin for Q1 was approximately 2%-3%, exceeding budget.

• Operating working capital at March 2026 was €140.8 million, representing 24.1% of last twelve months' sales.

• Inventory reduced to €160.4 million from €225.8 million at December 2025, reflecting improved management.

• Bank debt increased to €106.5 million at March 2026 from €92.6 million at December 2025.

Outlook and guidance

• FY2026 sales expected to decline mid to high single digits versus 2025, with adjusted EBIT margin forecasted at 2–3%.

• Year-end 2026 bank debt projected at €60–70 million, aided by inventory and working capital optimization.

• Management is preparing an updated Industrial Plan for 2026–2029 in response to evolving market conditions.

• Continued focus on cost containment, process optimization, and investment in digital and marketing.

• High uncertainty persists due to geopolitical and inflationary pressures.