Geox SpA, an Italian shoe manufacturer, is simplifying its operations. The company said on Thursday that it would close its US and Chinese operations at the end of the year.
According to Geox, the actions were intended to improve efficiency and better satisfy the demands of sales, as both businesses had only made negligible contributions to sales and were losing money. A few weeks prior, there had been conjecture in the media regarding the termination of operations in the United States.
In the fiscal year 2023, S&A Distribution Inc., the firm in charge of the US market, reported US $ 10.12 million in revenues and a US $ 1.58 million operating deficit. Recently, the Chinese company Geox Trading Shanghai Limited, which has 12 outlets throughout the nation, made US $ 14.55 million in sales annually but experienced a US $ 2.53 million operational loss.
A “relevant international player” will eventually take over the shoe manufacturer’s China operations. According to Geox, a matching cooperation arrangement is almost finalised.
Additionally, the business disclosed how its operations progressed during the first nine months of this year. In comparison to the same period last year, sales of US $ 554.12 million represented a 9.7 per cent (-9.0 per cent corrected for currency impacts) decline.
Revenues in the wholesale division dropped 15.4 per cent to US $ 289.45 million. Around US $ 264.56 million worth of products were sold at the company’s own stores, franchise partner stores, and online, which was 2.6 per cent less than the same amount the year before.
