Geox, the Strategic Plan Works
Between Europe and the United States, the Italian multinational holds the strength.
At the end of Fiscal 2015 (in January this year), the Italian multinational known for making the «shoes that breathe» proposed one of its most ambitious strategic plans for the sector, given its size. Increase sales to 1,000 million euros in 2018 is the goal, and it had to begin restructuring the company since it 2016. To do this, they put a plan in place: the store obtimización, reduced production costs, and implementation were raised differentiated business models seeking the greatest possible impact.
Geox, in addition to athletic shoes, began a few years ago expenasión into new businesses such as dress shoes and accessories – including sports fashion and casually. Mario Moretti, Geox founder and CEO presented the plan estratñegico with an invversión of 38 million euros to implement the changes. Et voila, in the first half of 2016 it seems that the changes begin to take off. Sales in the first six months of the year increased by 5.5%, bearing in account the monetary instability, economic instability in Europe and Asia, the fall of sales in mainland China, the results are good.
For the first time, we see a company of premium/luxury sector has sustained sales increases in Europe – despite the terrorist attacks, the Brexit, and the fall in consumption. Good results in the Old Continent, however, are not extrapolated to other geographical areas and have traduced in a fall of 37.8% to 4.8 million euros. The net profit amounted to 28 million euros.
As expected, the unit sports shoes remains a shot with sales of 410 million euros, while paragraph fashion and accessories still not taking off assuming only 9% of the total sales of the group. Sports style is undergoing a revolution in the world since the largest sports brands and business lines include sportswear for a total fit; and luxury brands (including couture) such as Chanel or Prada have also launched the fitness market.
Between Europe and the United States, the Italian multinational holds the strength. We will see that this is the performance in the second half of the year in which the foreign exchange market volatility must also be into account, for example, the United States presidential election.