Geox does not stop its run. The Veneto group has approved the strategic plan 2022-2024 which marks the second phase of a strategic path already undertaken in 2020 by the new Chief Executive Officer Livio Libralesso. Over the next three years, Geox will aim to improve its market share in countries where it enjoys a solid position, such as Italy, France, Spain and Germany. And at the same time to accelerate growth in those countries that are already undergoing strong evolution, first and foremost in Russia. To achieve these results, Geox's offer will continue to focus on digitization of your business, of a product offer more focused on current consumers (children and adults) but also to broaden its target to those customer segments of the new communication strategy.
As indicated by the footwear company, turnover and investments in digital will be the guidelines for business growth: the aim is a turnover exceeding 800 million euros in 2024, with an average annual growth rate of 11% and digital revenues that will reach around 30% of total revenues (from 17% in 2019). This growth, which will balance the decrease in revenues due to the reduction of physical points of sale, will be made possible by significant IT investments to accelerate digital transformation (in an omni-channel and omni-customer logic). With an increase in the advertising investments (expected at around 5% as a percentage of revenues in 2024 at consolidated level).
A more contained growth is also expected on the online channels of multi-brand customers where qualitative and profitability logics will prevail. The significant rationalization actions carried out in 2020-2021 will allow for greater efficiency of the business model.
While among the main financial goals, they await operating costs to 40,7% of turnover in 2024, with a reduction of approximately 6% compared to 2019; a ebit (net operating profitability) with an incidence of approximately 5-6% on turnover in 2024; total investments around 70/80 million mainly dedicated to IT projects (35% of the total); net financial position (before IFRS 16 and before the fair value of hedging derivatives) to around -20/-30 million euro (from around -100 million euro expected at the end of 2021).
"Presenting a Strategic Plan in a context made extremely complex by the pandemic testifies to the confidence we have in Geox's future", commented Mario Moretti Polegato, president and founder of the group. The entrepreneur then underlined that in two years important steps have been taken in the evolution towards "a more efficient business model thanks also to the important investments made in the digital transformation of the group". Geox is “now guided by an approach focused on the centrality of the consumer and distribution but, first of all, by our human capital, a wealth of Geox, on a par with the notoriety of the brand and the uniqueness of our patents. We have therefore made significant investments in training and in strengthening the team which is now complete and made up of people who firmly believe in the project and will be able to implement it', added the founder of the group.
