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Tod's preliminary FY18 same-store sales drop 3 percent

By Prachi Singh

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Business

In its preliminary results statement for the year 2018, Tod’s S.p.A., said consolidated sales were 958.2 million euros, at constant exchange rates, broadly aligned with the figure registered in FY 2017. At reported rates, revenues totalled 940.4 million euros with Tod’s and Roger Vivier getting most affected by currency fluctuations, due to their higher presence abroad. In 2018, retail sales were 622.3 million euros, in line with the figure of 2017, while same store sales growth rate was negative 3 percent in the fiscal year, due to the worsening of sales in Italy and the rest of Europe, despite the improvement registered in Greater China.

Commenting on the company’s performance, Diego Della Valle, Chairman and CEO of the Group, said: “2018 sales results were substantially in line with our expectations, despite the growing international economic and political uncertainties. As already announced, our family has mandated an international bank to proceed with the purchase of a significant stake; we believe, in fact, that in the medium term we will be able to get excellent financial satisfactions.”

Review of Tod’s full year results

Tod’s brand sales totalled 509.5 million euros in 2018. The company said good results were achieved in the Americas and in Asia, while Europe was affected by lower purchases of tourists and political and economic uncertainties in Italy. Hogan revenues were 207.5 million euros, up 1.8 percent from the previous year, with weakness of the Italian market getting more than offset by the solid double-digit growth recorded abroad. Sales of Roger Vivier totalled 179 million euros at constant rates, broadly flat as compared to FY 2017 with good results in Asia, while the brand suffered in Europe, especially as sales to tourists. Finally, sales of Fay were 61.3 million euros; down 3.4 percent, mainly due to the weakness of the domestic market.

Revenues from shoes were 758 million euros in FY2018, in line with the figure registered last year. Sales of leather goods and accessories totalled 131.8 million euros, down 3 percent from FY 2017, while sales of apparel were 67.5 million euros, slightly below the figure of last year.

Tod’s sales performance across geographies

Domestic sales were 282.2 million euros; a drop of 5.4 percent, due to the persistent weakness experienced by this market. In the rest of Europe, the group’s revenues totalled 246.4 million euros, slightly increasing compared to the previous year. In the Americas sales amounted to 76.9 million euros; down 1.4 percent due to the wholesale channel, while the retail channel registered positive results.

The Group’s sales in Greater China totalled 218.7 million Euros, up 3.1 percent from 2017 and with an acceleration of the performance in the fourth quarter. Positive results in mainland China, which represents approx. 60 percent of this region, in Hong Kong and in Macao. Finally, in the area rest of the world, the group’s revenues were 134 million euros, up 3.1 percent from 2017.

As of December 31st , 2018 the group’s distribution network was composed by 284 DOS and 120 franchised stores, compared to 275 DOS and 112 franchised stores as of December 31st , 2017.

Picture:Facebook/Tod's

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