Declining revenue at Tod’s
The Italy-based luxury group has announced decreasing revenue for the first nine months of 2017. A declining performance across all geographies and most of business segments was registered
Tod’s Chairman and CEO Diego Della Valle said: “The results are partially affected by some unexpected late deliveries and by some weakness in the wholesale channel, that in certain markets suggested a prudent approach due to its financial troubles. Our group is totally focused on executing the previously defined new business model, and we deem the strategy chosen for the future development of our brands right and coherent. Key points to the success of our plan are both the awareness of consumers more and more innovation/creativity – oriented and the new channels of communication and distribution, needed to capture their interest (…) For the current year, we are confident to deliver results in line with market expectations“.
In the first nine months of 2017 Tod’s consolidated sales reached 722.2 million euros, down by 4.7% from similar period in 2016. At constant exchange rates, and including the related effects of hedging contracts, sales would have been 725.6 million euros, down by 4.2% from last year. Within the group’s portfolio only the Roger Vivier brand managed to increase revenue in the period (by 10.5% at constant rates). Tod’s brand sales totalled 388.6 million euros in the first nine months of 2017, a slowdown (-6.9%) mainly driven by the different timing of deliveries of the Fall Winter collections. Hogan revenue totaled 156.8 million euros, a 8.6% decline mainly due to the weakness of the Italian market, mainly in the wholesale channel.
Revenue from footwear totaled 573.7 million euros, a 4.4% decrease from similar period of 2016 mainly due to the prudent attitude taken toward the wholesale channel and to a different timing of deliveries. Sales of leather goods and accessories totalled 99.8 million euros, a 3.8% decrease compared to the first nine months of 2016. Sales of apparel reached 47.9 million euros (-3.2%, broadly reflecting Fay’s performance).
In the first nine months of 2017, domestic sales totaled 227.6 million euros, a 6.7% decline, a performance reflecting the weakness of the wholesale channel, mainly in secondary cities, and have been exacerbated by the different timing of deliveries. In the rest of Europe, Tod’s revenue totalled 182.9 million euros, slightly lower than in the first nine months of 2016. The retail network posted positive results, while the wholesale channel was weak. In the Americas sales amounted to 57.6 million euros, down by 17% from the first nine months of 2016. The group’s revenue in Greater China totalled 155.1 million Euros, up by 1.4% from the first nine months of 2016.
When announcing the results for the first nine months of the year, CEO Stefano Sincini, shared with the Board his decision, fully supported by the controlling shareholders, of his future replacement in the role of Managing Director with Umberto Macchi di Cellere, previously Managing Director Worldwide Sales for all product categories for the Bulgari brand.
Source: World Footwear