Do Geox and Wolverine’s financial statements indicate a slowdown in consumption?

Is consumption starting to slow down? According to the numbers, forecasts and statements of Geox and Wolverine World Wide, it would appear so. Geox’s third quarter growth was below that of the first two. And the Italian group hopes that the 4^th quarter just replicates the 3^rd. Wolverine World Wide also had a disappointing quarter, with sales’ growth falling short of expectations. The point is: forecasts for the last 3 months of 2022 are fairly prudent, also due to the issues encountered with supply chains.

Geox and Wolverine World Wide

A Solid 2022 for Geox

Geox (in photo) generated a revenue of 569.1 million euro during the first 9 months of 2022, up 23% compared to the same period of 2021 (+20% at constant rates). During the 3^rd quarter, the increase in sales was of 15% compared to the same period of 2021. The company confirmed the forecasts set for the full year, “with strong improvements for revenue and all profitability indicators”, commented the founder Mario Moretti Polegato. Geox expects double-digit growth for the full year, with revenue surpassing the 700-million-euro mark. The 4^th quarter is expected to be weaker compared to the first three quarters, with “the ambition” of remaining in line with the 4^th quarter of 2021. (source investing.com).

Wolverine’s challenges

Wolverine World Wide’s revenue and margin were lower than forecasted during the third quarter, mainly due to the continuous interruptions of the supply chain, the increase in promotional sales and the worsening of the geopolitical context around the world. From July to September, the US group generated a revenue of 691.4 million USD, +8.6% compared to the previous year. Merrel is the shining star of the company’s portfolio: it’s revenue increased by 33.6%. Inversely, Saucony lost 0.6%. Wolverine too lost 1.2%. Footwear News writes that, beside from lower consumption, especially for boat shoes and women sneakers, the group is dealing with a congested distribution centers and difficulties tied to transporting goods in the United States. These issues cause delays to shipments that have already had an impact on sales.