Tod's posts 4 percent revenue drop in the first nine months
By Prachi Singh
Nov. 8, 2019
Tod’s SpA sales for the first nine months of 2019 were 677.7 million euros (748.7 million dollars), down 4 percent from the same period of 2018. Retail revenues for the period totalled 466.5 million euros and represented 70 percent of the group’s turnover. In the third quarter, this channel grew by 8 percent, driven by the sound double-digit growth of e-commerce, while the same-store sales growth was negative 4.7 percent in the first nine months. At September 30, 2019, the group’s distribution network composed of 290 DOS and 111 franchised stores.
Commenting on the update, group’s Chairman and CEO Diego Della Valle said in a statement: “The results of the quarter are substantially in line with our expectations. We continue to remain focused on the execution of our medium-term strategic plan. We are very satisfied with the returns in terms of brand image of the capsule made with Alber Elbaz, now in our stores, and of the other projects we are setting up for the future.”
Review of Tod’s nine months sales performance
Tod’s brand sales totalled 344.3 million euros (380.5 million dollars), Hogan sales amounted to 150.3 million euros (166 million dollars) with double-digit growth in Greater China, despite the delicate situation in Hong Kong, revenues of Roger Vivier totalled 144 million euros (159 million dollars), up 13 percent from the first nine months of 2018 with all the regions posting positive results, with the only exception of the US and sales of Fay amounted to 38.5 million euros (42.5 million dollars); the decrease, as compared to the same period of 2018, mainly due to the weakness of the Italian market, especially in the wholesale channel.
Revenues from shoes amounted to 543.2 million euros (600 million dollars), sales from leather goods and accessories totalled 91.5 million euros (101 million dollars) and sales from apparel amounted to 42.4 million euros (46.8 million dollars); broadly reflecting performance registered by the Fay brand. In the first nine months, domestic sales amounted to 195.3 million euros (215.8 million dollars); down due to the weakness of the wholesale channel, while in the rest of Europe, the group’s revenues totalled 176.3 million euros (194.8 million dollars).
In the Americas sales amounted to 49.9 million euros (55 million dollars); with the retail channel registering positive results. The group’s sales in Greater China totalled 156.4 million euros (172.8 million dollars), up 2.6 percent, while the “Rest of the World” revenues were 99.8 million euros, went up 1.2 percent.