ANNEXES

GEOX GROUP 1H20 RESULTS

SEPTEMBER 17, 2020

1H20 RESULTS| HIGHLIGHTS

  • SALES AT EURO 243.6 MILLION (-39.0%), DUE TO THE TEMPORARY STORE CLOSURES CAUSED BY THE COVID-19 EMERGENCY.
  • THE NETWORK OF DIRECTLY OPERATED STORES (DOS) IS CURRENTLY FULLY OPERATIONAL. PERFORMANCE IS GRADUALLY RECOVERING, WITH SALES IN DIRECTLY OPERATED STORES RETURNING TO GROWTH IN AUGUST WITH THE LAUNCH OF THE SUMMER SALES.
  • THE E-COMMERCE CHANNEL CONTINUES TO RECORD STRONG GROWTH: +40% SINCE THE BEGINNING OF THE YEAR (+59% IN THE SECOND QUARTER ALONE), THANKS TO THE ACQUISITION OF NEW CUSTOMERS.
  • AS AT 30 JUNE, THE DIGITAL CHANNEL (DIRECT AND INDIRECT) REPRESENTED AROUND ONE QUARTER OF THE GROUP'S TOTAL REVENUES, WITH GOOD LEVELS OF PROFITABILITY.
  • THE DIGITAL TRANSFORMATION OF THE BUSINESS MODEL IS GATHERING SPEED, AIMED AT PERFECTLY INTEGRATING THE PHYSICAL AND DIGITAL CHANNELS, WITH AN INCREASINGLY OMNICHANNEL APPROACH.
  • ADJUSTED EBIT* AMOUNTS TO EURO -70.6 MILLION, REFLECTING THE FACT THAT SALES PRACTICALLY HALTED IN THE SECOND QUARTER DUE TO THE LOCKDOWN AND INCLUDING AN EXTRAORDINARY INVENTORY WRITE-DOWN(EURO 15 MILLION).
  • SIGNIFICANT COST REDUCTION (-15% COMPARED WITH THE PREVIOUS YEAR)
  • THE GROUP'S BALANCE SHEET AND FINANCIAL POSITION IS SOLID AND, THANKS TO THE ACTIONS TAKEN, IT HAS BEEN ABLE TO KEEP ITS LEVEL OF DEBT UNDER CLOSE CONTROL DESPITE THE EFFECTS OF THE PANDEMIC. THE NET FINANCIAL POSITION AT 30 JUNE 2020 (PRE IFRS 16) AMOUNTS TO EURO - 88.8 MILLION (EURO - 30.8 MILLION AT 30 JUNE 2019). CASH WAS GENERATED IN JULY AND AUGUST THANKS TO THE GOOD PERFORMANCE OF THE SUMMER SALES AND PAYMENTS BEING SUCCESSFULLY COLLECTED FROM CLIENTS.

* BEFORE THE RESTRUCTURING EXPENSES AND IMPAIRMENT FOR EURO 13.3 MILLION.

2

1H20 RESULTS| COVID- 19 IMPACTS ON THE INDUSTRY: WHOLESALE AND RETAIL

W37

DEC 19

JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEP

OCT

NOV

COVID 19 SCENARIO

LOCKDOWN

PROGRESSIVE RECOVERY IN

TRAFFIC (FROM -80% TO HIT - 15%

PERIOD

AND THEN -30%)

STORE CLOSURES

SS20

PRE -SPRING

FULL PRICE SEASON

OFF PRICE SEASON

HARD STOP/CANCELLATIONS

INITIAL ORDER COLLECTION

ISSUES ON SUPPLY CHAIN

FW20

ORDER TO SUPPLIERS, PRODUCTION, DELIVERIES

FLOWS CANCELLED

LOW ER

TRAFFIC/VACCINE(?)

PRE-FALL

FULL PRICE SEASON

WEAK MARKET CONDITIONS

SS21

INITIAL ORDER COLLECTION

W37

JAN 21

FEB 21

DEC

OFF PRICE SEASON

EARLY DELIVERIES SHIFT(?)

PRE -SPRING

WHS IMPACTS

  • ORDER CANCELLATIONS
  • LOWER RE-ORDERS
  • LOWER PROMOTIONS AND STOCK SALES
  • WHS SUPPORT PACKAGE
  • ORDER CANCELLATIONS (-21%)
  • EARLY DELIVERIES SHIFT
  • OTB: -21%
  • DELIVERIES DELEAYED
  • SOFT START OF THE FW20 SEASON
  • PRUDENT APPROACH FROM CUSTOMERS ON INITIAL ORDER COLLECTION
  • EARLY DELIVERIES SHIFT (?)

3

1H20 RESULTS | DOS (B&M REGULAR) - TRAFFIC AND LFL EVOLUTION -

DOS: TRAFFIC AND LFL TREND BY RE-OPENINGS (GROUP)

LFL TRAFFIC

END OF THE SALES

SEASON IN FRANCE

START OF THE SALES

SEASON IN FRANCE

BACK

TRANSITION

TO SCHOOL

TO FW20

HOT WEATHER

INCREASING CONCERNS ON

COVID - 19/ NEW CONTAGIONS

SHIFT TO FULL PRICE

START OF THE SALES

SEASON IN ITALY

START OF THE SALES

..LEVERAGING ON

OUR STRONG

SEASON IN SPAIN

COLLABORATIONS

START OF THE SALES

SEASON IN GERMANY

AND AUSTRIA

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Geox S.p.A. published this content on 17 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 September 2020 15:49:00 UTC