Geox’s First-Half Income Falls

Geox SpA reported a 3 percent increase in sales in the first half, buoyed by double-digit growth in emerging markets, but it could not offset a 23 percent drop in profit.

For the six months ended June 30, the firm’s earnings before interest, tax, depreciation and amortization were 60.9 million euros, or $86.2 million at current exchange, versus 79.4 million euros, or $112.3 million, in the same period a year ago.

Revenue totaled 448.3 million euros, or $634.2 million.

Footwear sales, which represent 88 percent of group revenue, advanced 2 percent, while apparel sales grew 14 percent.

By region, North America gained 5 percent and Europe rose 2 percent, at constant exchange rates. Markets outside those regions saw the biggest increase in sales: 11 percent.

Gross margin declined 480 basis points to 45.9 percent, due to higher promotional selling activities in the first quarter, unfavorable trends in currencies, raw material prices and labor cost increases in supplier countries, the firm said.

As of June 30, Geox had net cash of 65.7 million euros, or $92.9 million, versus 99.9 million euros, or $141.2 million, the same time last year.