Geox invented the breathing shoe — then lost its sole

Mario Moretti Polegato was a vineyard owner from the Veneto region when he attended a wine convention in Reno, Nevada in 1993. He cut holes in the soles of his rubber-soled walking shoes to cool his burning feet — and realized he had invented a new type of footwear: breathable shoes with a perforated rubber sole protected by a waterproof membrane. He patented the idea and founded Geox in 1995.

The company grew explosively. The 'shoe that breathes' was a genuine product innovation, and Geox rode it to a stock market listing in 2004. At its peak, the company was worth over €1.5 billion. Geox expanded globally, opening stores in 100+ countries, and by 2011 had nearly 7,000 employees and over 1,100 mono-brand stores.

The decline was slow at first, then fast. The problem was the same as the invention: Geox had one trick. Competitors launched their own breathable technologies. The brand lost its premium positioning. Operating margins shrank from 17% in 2007 to near zero by 2015. The company tried diversification (apparel, sneakers) but nothing stuck.

The crisis hit in 2020. Geox filed for bankruptcy in Canada in September 2020. Full-year results showed a net loss of €128.2 million on revenue of €534.9 million. In July 2021 the company closed its factory in Vranje, Serbia, cutting 1,200 jobs. Founder Mario Moretti Polegato had stepped down as chairman in 2019. The company survived through restructuring but was a shadow of its former self.