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.

Geox rode a single product innovation to a €1.5B peak, but when the patent expired and competitors copied it, losses hit €128M, forcing bankruptcy and 1,200 job cuts.

Geox had one product innovation — the breathable sole — and no second act. The patent expired, competitors copied the technology, and Geox had no answer beyond marginal improvements.

The company expanded aggressively on the strength of the original idea, building a large store network and workforce that became a fixed-cost burden when the growth stopped.

Diversification into apparel, sneakers and other categories diluted the core brand message without producing a successful new line.

The founder's identity was so tied to the 'inventor CEO' story that the company struggled to define itself beyond that narrative.

A single innovation can build a billion-dollar company. A single innovation cannot sustain one. Geox needed a second act — and never found it.

Geox survived the 2020 crisis through restructuring, debt renegotiation, and store closures. The company returned to positive EBITDA by 2022. However, the brand has never regained its former stature. The share price traded below €1 by 2023, down from a 2007 peak of nearly €10. The Vranje factory closure in 2021 eliminated 1,200 jobs. As of 2023, Geox had shrunk to around 2,800 employees and 600 stores globally.