Geox launches a five-year recovery plan. From 2025 to 2029 are previewed investments for 120 million euros, and at least half of them are guaranteed by the Polegato family. The aim is to reach a revenue of 850 million euros, with an operating margin established at least at 7%. A key factor is represented by an agreement settled with the banking system for a debt restructuring. But the financial market reacts negatively, and as a consequence the Geox stock is under pressure.
Geox’s five-year recovery plan
Geox wants to take off again after a defensive year, characterized by disinvestments and layoffs in China and in the US. The income has dropped (it is expected -5% compared to 2023), but with an improvement in marginality. In order to start again, the firm based in Montebelluna relies on the new five-year industrial plan (from 2025 to 2029), which is structured on 120 millions of total investments. The majority shareholder – LIR, the company owned by the president and founder of Geox, Mario Moretti Polegato – has committed to refinance the firm up to 60 million euros: 30 million during the first months of this year and the other 30 million during Fall 2026. Geox’s liquidity is also going to take advantage from the agreement signed with banks that, based on a series of guarantees, have extended the debt maturity by 2 years.
Premium destination
During 2024 Geox disinvested in the USA and China. But during the last month the company has already signed an exclusive five-year distribution deal in China (source ilnordest.it). The investments are going to be used in order to shift the collections towards the Premium range. As stated by Corriere del Veneto, this program is going to guarantee an increase in the average price from 5% to 10%. Another aim of this plan is to repeat with the male segment the “Operation Penelope Cruz”, with which Geox has managed to lower the average age target of its female customers.
Collapse on the stock market
The first result of this plan turned out to be negative. During the financial meeting that took place on the 2th of October, the Geox stock dropped down to -8%. Even during the opening of the price lists on the 3th of October, the share still remained weak, around the value of 50 cents. The market capitalization is established at around 128 million euros (mv).
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