Tod's nine-months revenues decline 4.7 percent

Tod’s Group’s consolidated sales were 722.2 million euros (835 million dollars) in the first nine months of 2017, down 4.7 percent from the same period of 2016. At constant exchange rates, the company said, sales would have been 725.6 million euros (838 million dollars), down 4.2 percent from last year.

Commenting on the group’s first nine months’ performance, Tod’s Chairman and CEO Diego Della Valle, said in a media statement: “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.”

Sales performance across brand segment

Tod’s sales totalled 388.6 million euros (449 million dollars) in the first nine months. The company said the slowdown registered in the third quarter is mainly due to the different timing of deliveries of the fall winter collections.

The company added that Hogan revenues declined to 156.8 million euros (181 million dollars); due to the weakness of the Italian market, mainly in the wholesale channel. Roger Vivier revenues totalled 131.3 million euros (151 million dollars), up 9.6 percent from the same period of 2016. The company saw strong results in all markets, excepted for the US one, which continued to be penalized by the sharp drop of traffic in the stores.

Revenues of the Fay brand were 44.8 million euros (51 million dollars), slightly lower than in 9 months 2016. The brand registered positive results in Europe, where its internationalization is currently focused.

Revenues from shoes decreased to 573.7 million euros (663 million dollars), which the company attributed 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 (115 million dollars); the 3.8 percent decrease. Sales of apparel were 47.9 million euros (55 million dollars); the 3.2 percent decrease.

Domestic sales results reflect weakness in wholesale division

In the first nine months, domestic sales were 227.6 million euros (263 million dollars); reflecting the weakness of the wholesale channel, mainly in secondary cities, and different timing of deliveries. In the rest of Europe, the group’s revenues totalled 182.9 million euros (211 million dollars), 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 (66 million dollars), down 17 percent from the first nine months of 2016. The group’s revenues in Greater China totalled 155.1 million euros (179 million dollars), up 1.4 percent, with Mainland China registering positive results; Hong Kong still negative. In the ‘Rest of the World’ the group’s sales were 99 million euros (114 million dollars), down 4 percent. The company said, Japan was positive, while the sales performance in Korea was still negative.

Sales through DOS totalled 449.3 million euros (519 million dollars), broadly in line with the figure of the same period of 2016. The same store sales growth (SSSG) rate, was negative 2.7 percent in the first nine months of the year. At September 30th, 2017, the group’s distribution network was composed by 272 DOS and 114 franchised stores, compared to 266 DOS and 103 franchised stores as of September 30th, 2016.

The company announces appointment of the new MD

The company’s current CEO, Stefano Sincini stepped down from the position after serving the company for last 33 years. Umberto Macchi di Cellere, previously managing director worldwide sales for all product categories for the Bulgari brand has been named the new Managing Director of the company.

Macchi di Cellere, Tod’s said, brings to the group a long and solid managerial experience and a strong marketing and commercial skills matured in one of the most important global luxury brands. The company said, Macchi di Cellere has reached an agreement with the company to join on December 1, 2017.

The board of directors also thanked Sincini for his 33-year collaboration with the group. “It’s neither easy nor possible to say goodbye with only a few words to a person, who worked for so many years in our company and contributed to reach many and important achievements. We wish him all the best in his professional future endeavors and greet him friendly,” added the company’s Chairman Diego Della Valle and the Vice-Chairman Andrea Della Valle.

Picture:Tod's website