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Tod’s same-store sales decline 14.6 percent

By Prachi Singh

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Business

Tod’s Group sales for the first nine months of 2016 were 757.7 million euros (824 million dollars), down 3.7 percent from the same period last yeat. At constant exchange rates, the company said, sales would have been 751.9 million euros (818 million dollars), down 4.4 percent from last year. The same store sales growth (SSSG) was down 14.6 percent in the period. The company attributed this decline to the weakness in consumption on the main luxury markets.

Commenting on the company’s performance, the Group’s Chairman and CEO Diego Della Valle, said, “As expected, the sales figures for the nine months reflect a volatile and uncertain economic and financial environment, characterized by the persistent weakness of consumption in many important markets for luxury goods. We remain focused on organic growth of the stores, accompanied by a selective and prudent strategy of network development, limiting ourselves to few openings and to special projects. We attribute also great importance to the wholesale channel, which is evolving continuously.”

Performance highlights of the Tod’s brand segment

The Tod’s brand registered 419.4 million euros (456 million dollars) in sales. The company said, the decrease compared to 2015 reflects the weakness in consumption in major markets for luxury goods, mainly due to the sharp decline of tourist flows. Hogan sales were 171.9 million euros (187 million dollars), down 2.8 percent owing to weakness of the Italian market, and sharp decline in tourist flows. Revenues of the Fay brand were 45.5 million euros (49.5 million dollars), up 4.1 percent.

All the geographical areas, where Fay is distributed, were positive; strong results in the Asian markets, which grew double-digit, even if on very small volumes. Finally, Roger Vivier registered 119.8 million euros (130 million dollars) in sales, up 6.9 percent. The company said, all the markets were positive, with the exception of US.

Financial review of sales across geographies

Revenues from shoes were 603.3 million euros (656 million dollars), with a small decrease compared to the same period of 2015. Sales of leather goods and accessories totalled 103.8 million euros (112 million dollars). Finally, sales of apparel were 49.5 million euros (53 million dollars), slightly higher than in the same period of 2015.

Domestic sales were down 4 percent due to lower purchases from tourists. In the rest of Europe, the Group’s revenues totalled 188.3 million euros (204 million dollars), were broadly flat. France and UK were the countries that more suffered from the decline of sales to tourists. In the Americas sales totalled 69.5 million euros (75.6 million dollars), down 6 percent. The Group’s revenues in Greater China totalled 152.9 million euros (166 million dollars), 8.9 percent decrease due to the weakness in Hong Kong and Taiwan, while mainland China, which represents slightly more than half of this region, showed some signs of improvement. In the “Rest of the World” the Group’s sales were 103.1 million euros (112 million dollars), up 1.6 percent. The company saw solid double-digit growth of revenues in Korea.

As of September 30, 2016 the Group’s distribution network was composed by 266 DOS and 103 franchised stores, compared to 255 DOS and 95 franchised stores as of September 30, 2015.

Picture:Tod's

Tod's