Geox 9-Months Net Profit Down 33.4% Amid Slowing Sales

Italian shoemaker Geox SpA (GEO.MI) said its net profit dropped 33.4% in the first nine months of the year, mainly due to high costs related to the opening of new stores worldwide and slowing sales.

The company said its net profit in the first nine months of the year fell to EUR89.6 million from EUR134.6 million in the same period a year earlier.

That was lower than the average forecast of a Dow Jones Newswires poll of analysts for net profit of EUR95.8 million.

Earnings before interest and taxes, or EBIT, in the nine months ended Sept. 30 edged down to EUR154.4 million from EUR194.1 million a year earlier.

Geox, best known for its "breathable" shoes, also said that revenue dropped to EUR780 million from EUR798.9 million in the first nine months of last year, amid a contraction in consumer spending.

Geox founder and president Mario Moretti Polegato said that despite a challenging macro economic climate the company "has shown that it was able to deal with the situation rapidly and effectively, maintaining the level of sales and, above all, increasing the generation of cash."

Company Web site: http://www.geox.com

-By Chiara Vasarri, Dow Jones Newswires; 39 06 69766923; [e-mail]