(Reuters) – Italian shoemaker Geox plans to invest about 120 million euros ($125 million) as part of an industrial plan to 2029 and has signed a five-year deal with a leading Chinese operator to expand its presence in the country.
The maker of breathable, waterproof footwear said in November it would end direct operations in the unprofitable Chinese and U.S. markets after posting a 9.7% yearly drop in nine-month revenue globally. It said it would continue its business in the two countries through local partnerships.
In addition to the investments, announced in a statement late on Monday, the group said it would extend by 24 months the medium- to long-term debt repayment plans as part of a debt refinancing agreement with creditor banks including Monte dei Paschi and the Italian units of BNP Paribas and Credit Agricole.
Geox controlling shareholder LIR, the family holding of its chairman and founder Mario Moretti Polegato, will contribute up to 60 million euros to the industrial plan, the statement said.
The shoemaker expects yearly revenues above 850 million euros by 2029, compared with 720 millions in 2023, with compound annual growth rate (CAGR) of 5% in the next five years, and an EBIT (earnings before interest and taxes) margin over 7% by 2029.
($1 = 0.9610 euros)
(Reporting by Alessandro Parodi and Michela Stasio, editing by Barbara Lewis)
