Geox : First Quarter 2016 Sales

IL CDA DI GEOX S

PRESS RELEASE - REVENUES FOR THE FIRST QUARTER OF 2016

+4.7% INCREASE IN REVENUES THANKS TO POSITIVE PERFORMANCE RECORDED ACROSS ALL SALES CHANNELS AND IN PARTICULAR IN THE MULTI-BRAND CHANNEL, UP 7.1% +14% INCREASE IN ORDER BACKLOG RECORDED BY THE MULTI-BRAND CHANNEL FOR THE 2016 FALL/WINTER SEASON Biadene di Montebelluna, 12th May 2016 - Geox S.p.A., a leading brand in classic and casual footwear, listed on the Milan Stock Exchange (MSE: GEO.MI), today analysed its consolidated revenues for the first quarter of 2016.

Mario Moretti Polegato, Chairman and founder of Geox, commented: "I am satisfied with the revenues generated by Geox Group in the first quarter, which recorded a 5% increase thanks to the positive performance recorded across all sales channels. In particular, the multi-brand channel reported a growth of 7% and sales also increased for both our directly operated and franchised mono-brand stores, by 2.5% and 2.2% respectively.

These results, achieved amid a challenging industry environment, are confirmation of the effectiveness of our strategic development plan and of our sales and marketing initiatives. I'm particularly referring to our product innovation, which has always allowed us to stand out in the market. We've launched technically innovative projects, such as the Amphibiox and Nebula ranges, successfully combining modern design with high levels of comfort, guaranteed by great breathability.

However, macro conditions remain volatile, presenting us with a number of challenges that we must transform into opportunities. In addition to our ongoing focus on revenues, we must remain vigilant in the management of costs, margins and channel specialization.

Finally, with respect to the second half of the year, the orders already collected by the multi-brand channel for the 2016 Fall/Winter season, show a solid growth of 14%, thanks to excellent overall performance across all geographical areas, channels, categories and product lines."

FIRST QUARTER 2016 SALES

First quarter 2016 consolidated net sales increased by 4.7% to Euro 294.3 million (+5.0% at constant forex). Footwear sales, which accounted for about 90% of consolidated sales, amounting to Euro 265.2 million, increased 4.9% compared to first quarter of 2015 (+5.1% at constant forex). Apparel sales, which represented 10% of consolidated sales, equal to Euro 29.2 million, compared to Euro 28.2 million of the first quarter 2015 (+3.2%; +3.8% at constant forex).

(Thousands of Euro)	I Quarter 2016	%	I Quarter 2015	%	Var. %
Footwear	265,191	90.1%	252,777	90.0%	4.9%
Apparel	29,147	9.9%	28,235	10.0%	3.2%
Net sales	294,338	100.0%	281,012	100.0%	4.7%

Sales in Italy, which accounted for 34% of sales (36% in the first quarter 2015), amounted to Euro 99.7 million broadly aligned with first quarter 2015 sales (Euro 100.5 million). This performance is driven by the closure of some monobrand stores, which was partially offset by the wholesale growth (+7%) and the like for like performance of retail channel (DOS and Franchising) +3%.

Sales in Europe, which accounted for 44% of sales increased by 7.3% (7.4% at constant forex) to Euro 128.5 million, compared with Euro 119.7 million in the first quarter of 2015.

North American sales amounted to Euro 15.7 million, showing an increase of 10.4% (+14.6% at constant exchange rates). Sales in Other Countries increased by 8.3% compared to the first quarter of 2015 (+8.3% at constant forex).

(Thousands of Euro)	I Quarter 2016	%	I Quarter 2015	%	Var. %
Italy	99,728	33.9%	100,475	35.8%	(0.7%)
Europe (*)	128,462	43.6%	119,713	42.6%	7.3%
North America	15,681	5.3%	14,205	5.1%	10.4%
Other countries	50,467	17.1%	46,619	16.6%	8.3%
Net sales	294,338	100.0%	281,012	100.0%	4.7%
(*) Europe includes: Austria, Benelux, France, Germany, UK, Iberia, Scandinavia, Switzerland.

Sales of the DOS channel, which represent 30% of Group revenues, grew 2.5% to Euro 87.8 million compared to the first quarter of 2015 (+3.0% at constant forex). The improvement is mainly driven by

comparable store sales growth recorded on DOS channel (+3.2% against +4.8% from the first quarter last year). Like for like performance is positive in all countries excluding France and Belgium, following the terrorists attacks and in China, HK and Japan reflecting a low footfall.

Like for like performance year to date (week 1- week 18) is up 1.1% (+5.4% last year). After a solid start of the year, March and April experienced a slowdown in foot traffic not completely offset by a better conversion rate.

Sales of the franchising channel, which account for 19% of Group revenues, amount to Euro 57.5 million, with an increase of 2.2% (+2.5% at constant forex).

Multi-brand stores representing 51% of Group revenues (50% in the first quarter of 2015) amount to Euro

149.0 million, with an increase of 7.1% (7.2% at constant forex).

(Thousands of Euro)	I Quarter 2016	%	I Quarter 2015	%	Var. %
Multi-brand	149,006	50.6%	139,087	49.5%	7.1%
Franchising	57,536	19.5%	56,277	20.0%	2.2%
DOS*	87,796	29.8%	85,648	30.5%	2.5%
Geox Shops	145,332	49.4%	141,925	50.5%	2.4%
Net sales	294,338	100.0%	281,012	100.0%	4.7%
* Directly Operated Store

As of March 31, 2016, the overall number of Geox Shops was 1,149 of which 468 DOS. During the first quarter of 2016, 14 new Geox Shops were opened and 26 have been closed, in line with the rationalization plan of the DOS network.

03-31-2016			12-31-2015		First quarter 2016
Geox	of which	Geox	of which	Net	Openings	Closings
Shops	DOS	Shops	DOS	Openings
Italy	357	132	360	131	(3)	4	(7)
Europe (*)	346	178	348	179	(2)	2	(4)
North America	45	45	47	47	(2)	-	(2)
Other countries (**)	401	113	406	119	(5)	8	(13)
Total	1,149	468	1,161	476	(12)	14	(26)

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

(**) Includes Under License Agreement Shops (144 as of March 31, 2016, 142 as of December 31, 2015). Sales from these shops are not included in the franchising channel.