Geox S p A reports 2025 higher than expected Results

PRESS RELEASE - FY2025 RESULTS

GEOX REPORTS 2025 HIGHER THAN EXPECTED RESULTS:

• Sales at Euro 608.7 million down 8.3 (-8.5% at constant exchange rates) compared to 2024. Excluding the impact of the closure of the subsidiaries in China and the United States, and of certain non-profitable channels, the decline was 5.3%.
• Non-recurring costs of Euro 12.1 million were incurred during the year, in connection with the restructuring of the internal operating model, aimed at enhancing its efficiency and sustainability.
• Adjusted ebit (net of non-recurring items) at euro 9.0 million (euro 8.8 million in 2024), achieved thanks to cost efficiency measures, which offset the impact of lower sales volumes.
• Net loss 2025 at Euro 16.2 million, halved compared to Euro 30.3 million in fy2024, despite funding non-recurring costs for euro 12.1 million.
• Net financial position at year end (pre-ifrs 16 and fair value adjustments on hedging instruments) showing a significant improvement and amounting to Euro -92.6 million (Euro -103.2 million at 31 December 2024).
• New collaboration for the design of the entire collection structure starting from SS27 season, with a globally renowned design studio, which is an international benchmark in footwear design.

The Chief Executive Officer Francesco Di Giovanni commented: "2025 was for Geox a year of deep revision of the operating model, leading to a significant reduction of the cost base, the first benefits of which have already emerged during the financial year just ended.

In a market environment still impacted by a contraction in sector consumption, which led the Group to record a sales decline of 5.3% versus the same period last year on a comparable basis, the initiatives undertaken have already delivered tangible results: the net loss for the year was halved compared to 2024, and the bank debt significantly reduced, standing at Euro 92.6 million.

During 2025 Geox accelerated a series of initiatives aimed at strengthening margins and rationalizing less profitable distribution channels, enhancing at the same time the efficiency and sustainability of its own operating model, through the optimization of fixed costs and an increased capacity to absorb them.

To support its future targets, new patented products were developed during the year, allowing us to look forward to the next phase of growth with renewed determination.

Leveraging its expertise and technological innovation capabilities, Geox is preparing to launch revolutionary solutions initially targeted at its own retail network. The technological components, which have always been the core part of the brand's heritage and value, have been brought back to the center of the Group's research and development strategy, as well as its commercial and marketing activities.

The Company has also entrusted the style development of the entire adult collection, and in particular the women's collection for the SS27 season, to a globally renowned design studio which is an international benchmark in footwear design. This collaboration brought fresh creative and stylistic energy to the Geox brand's offerings and will further strengthen its positioning and appeal in the markets."

2025 was impacted by a sales decline of approximately Euro 55.1 million (-8.3%) compared to the previous year. Excluding the impact of the closure of the subsidiaries in China and United States, and of certain non-profitable channels, the decline amounts to Euro 34.4 million (-5.3%).

In order to face these challenges, during the second half of 2025 the management has implemented a plan to resize the Group's operational structure which, combined with the efficiency measures already ongoing for several months, enabled further savings on operating costs structure for about Euro 27.4 million.

Thanks to these measures and their timely execution the adjusted EBIT, net of non-recurring items, is in line with previous year and amounts to Euro 9.0 million (Euro 8.8 million in 2024), despite sales decline.

In the same way, the operating result (EBIT) is in line with previous year, since non-recurring costs linked with the process of business model transformation amounted to Euro 12.1 million, compared to Euro 13.0 million in 2024.

2025 net loss, amounting to Euro 16.2 million, is nearly halved compared to Euro 30.3 million in 2024, mainly thanks to a lower impact of financial income and expenses. It should be noted that such difference compared to 2024, is due to both the movement in the Ruble valuation, for approximately Euro 10 million of exchange rates, and to lower interests expenses, for approximately Euro 1.7 million.

Below is a summary of the Group's results:

• Sales: Euro 608.7 million, down 8.3% compared to 2024;

• Adjusted EBITDA excluding IFRS16 impact: Euro 24.8 million, compared to Euro 26.2 million in 2024;

• Adjusted Operating Result (EBIT): Euro 9.0 million, compared to Euro 8.8 million in 2024;

• Adjusted Net Result: Euro -4.1 million, compared to Euro -17.3 million in 2024.

The consolidated income statement is shown below:

Consolidated sales for 2025 amount to Euro 608.7 million, down 8.3% compared to the previous year (-8.5% at constant exchange rates). Excluding the impact of the closure of the subsidiaries in China and United States, and of certain non-profitable channels, the decline amounts to Euro 34.4 million (-5.3%).

Wholesale channel sales amount to Euro 194.3 million, accounting for 31.9% of total Group sales (32.7% in 2024), and recorded a decrease of 10.5% at current exchange rates (-10.6% at constant exchange rates) compared to Euro 217.1 million in 2024. Excluding the impact of the closure of the subsidiaries in China and the United States, the decrease is equal to Euro 17.9 million (-8.4%). This performance reflects a lower orders intake for the SS25 and FW25 collections compared to the previous year, across all key markets.

Starting from this fiscal year, the Wholesale channel includes, in addition to sales to multi-brand stores, also sales to Geox mono-brand franchised stores operating under a "Wholesale-like" model.

Retail channel sales amount to Euro 249.2 million, accounting for 40.9% of total Group sales, decreasing compared to Euro 261.2 million in 2024 (-4.6% at current exchange rates, -4.7% at constant exchange rates). Excluding the impact of the closure of the subsidiaries in China and the United States, the decrease amounts to Euro 8.4 million (-3.3%). This reduction is attributable to a negative net perimeter effect of approximately Euro 3.7 million, due to store closures, and to a performance effect of approximately Euro 4.7 million due to a deterioration in store traffic, mainly recorded in the second half of 2025, which intensified in the last quarter of the year.

Starting from this fiscal year, the Retail channel includes, in addition to DOS B&M sales, sales generated from Geox mono-brand franchised stores operating under a "Direct to Consumer- like" model (In-Deal - Retail).

As for the distribution perimeter, the number of directly operated physical stores (DOS B&M) decreased from 240 in December 2024 to 235 in December 2025, while the number of franchised points of sale (In-Deal - Retail) was reduced from 141 to 106 over the same period.

Sales generated through digital channels - which, starting from this year, include the owned website and marketplaces, both directly managed and operating under a Wholesale model - recorded a decrease of 10.9% compared to December 2024, partly as a result of a rationalization of web channels initiated in the second half of the current financial year. Excluding the impact of the closure of the subsidiaries in China and the United States, the decrease amounts to Euro 12.1 million (-6.8%). It is worth mentioning the positive LFL performance of +4.6% of the owned website, which partially offsets the negative performance of the channel.

(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.

Sales generated in Italy account for 29.4% of the Group's total sales (28.3% in 2024), and amount to Euro 179.2 million, down by 4.5% (-4.5% at constant exchange rates) compared to Euro 187.5 million in 2024. This decrease is primarily attributable to the performance of Wholesale channel (-8.7%) and Retail channel (-4.1%), only partially offset by the positive performance of the Web channel (+5.4%).

Sales generated in Europe represent 47.8% of total Group sales (45.2% in 2024), amounting to Euro 290.7 million, compared to Euro 300.3 million in 2024, marking a decrease of 3.2% (-3.1% at constant exchange rates), driven by the negative performance of the Wholesale channel primarily in the German, French and Iberian markets.

This decrease is partially mitigated by the positive performance of the Retail channel, especially in France and Benelux.

Sales generated in the "Other countries" account for 22.8% of total Group sales (26.5% in 2024) and amount to Euro

138.7 million compared to Euro 175.9 million in 2024, recording a decline of 21.1% compared to 2024 (-21.7% at constant exchange rates).

We point out that this result was negatively impacted by the change in the geographic perimeter following the closure of the subsidiaries in China and the United States, which led to a sales loss of approximately Euro 16.7 million. In addition, we highlight the good sales performance in the MEA (Middle East & Africa) region, and the negative performance in Russia, where operations continue to be affected by the ongoing instability and tensions related to the conflict. Starting from this fiscal year, sales results from Canada are reported and discussed within the "Other countries" area.

Footwear accounts for 90.4% of the consolidated sales, amounting to Euro 550.1 million, down 8.0% (-8.1% at constant exchange rates) compared to 2024. Apparel sales represent 9.6% of consolidated sales, equal to Euro 58.5 million, marking a decline of 11.2% at current exchange rates (-12.1% at constant exchange rates) compared to 2024.

Mono-brand store network - Geox shops

As of December 31, 2025, the total number of "Geox Shops" stood at 570, of which 235 were DOS. During 2025, 35 new Geox Shops were opened and 81 were closed, in line with the planned optimization of the distribution network in more mature markets.

(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.

(**) Includes Under License Agreement Shops (127 as of December 31 2025, 127 as of December 31 2024). Sales from these shops are not included in the franchising channel.

OTHER INCOME STATEMENT ITEMS

2025 results are presented adjusted for certain non-ordinary and non-recurring costs, as previously outlined, to ensure comparability with the previous year.

Below are the key highlights:

Cost of sales represented 49.0% of sales, compared to 49.1% in 2024, resulting in a gross margin of 51.0% (50.9% in 2024). It should be noted that 2024 margin was adjusted by approximately Euro 2.4 million, for non-recurring items