Geox earnings rise a disappointing 9 percent

Tag : leisure footwear


MILAN, Italy : Italian leisure shoemaker Geox SpA on Monday reported a 9 percentincrease in first-quarter earnings, falling well short of analysts'expectations.

Geox, the world's third-largest maker of leisure footwear known forits patented breathable soles, reported net profit of €79million (US$122 million) from €72.5 million a year earlier.

Analysts had expected a 17 percent increase to €84.6 million(US$131 million).

Santander analyst Andrea Paladini said the results are a sign thatGeox could be hit by the retail slowdown in the United States andEurope. "Growth could be slow from now on," he said, noting thatwhile sales from its European stores outside Italy rose 10 percent,Germany rose only 5.2 percent, to Italy's 13 percent. U.S salesrose 14 percent.

The company said revenue rose to €365 million (US$563million) from €315.2 million. Earnings before interest,taxes, depreciation and amortization rose to €123.7 million(US$191 million) from €118 million in the first quarter of2007.