In an unexpected move, Geox is winding down its U.S. operations at the end of the month – including closing its New York City office and cutting staff, FN has learned.
Enrico Mistron, who joined Geox as chief executive officer in March, confirmed the news to FN in a statement. “We confirm the closure of the NYC office,” Mistron said. “In fact, we are reviewing our business model in the USA, and we will give you visibility in a few months.”
In addition to his statement, a company representative added that Geox “continues to serve” its clients through its partners and digital channels.
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According to the Italian footwear company’s half-year financial report, Geox had 122 employees in North America as well as 11 owned stores in the region as of June 30, 2024. It’s unclear how many of those associates have been affected by the closure. The company has declined to give further details.
When Mistron joined Geox earlier this year, the company said his appointment is pivotal for the company’s business, marked by investments geared at end consumers, sustainability, AI as well as research and development.
So far this year, Geox has reported that consolidated sales for the first six months of 2024 were 320.4 million euros, a 9.4 percent decrease from 353.6 euros at the same time last year. Such decline is primarily due to the negative performance of the wholesale channel and franchising, only partially offset by the positive trend of the direct digital channel, Geox said in its half-year results.
As for North America, Geox reported sales for the first half of 2024 to be down 13.7 percent to 11.7 million euros compared to 13.6 million euros this time last year. The company said that this decline was seen across all major sales channels, except for the direct digital channel, which showed positive performance at up 5.1 percent in the period. According to its recent financial report, North American sales accounted for 3.7 percent of the company’s overall business in the first half of the year.
Looking ahead, the company expects sales for the full year 2024 to decrease by mid-single digits compared to 2023, with operating margins increasing by 50 basis points for the full year.
