Greater China bucks trend for Tod’s Group
While first-quarter global sales fell for Italian fashion house Tod’s Group, Greater China bucked the trend with a 4.4 per cent rise for the period.
Sales weakened domestically but managed to grow 2.3 per cent in the Americas, while Greater China raked in €52.5 million (US$62.2 million) at constant exchange rates. At reported rates, the value was €48.7 million.
In the company’s other international markets, revenues were up 3.3 per cent to €35.8 million at constant rates, or €15.4 million at reported rates.
Overall consolidated sales eased 1.8 per cent to €234.1 million at constant rates.
Currency fluctuations had been expected to hugely affect sales, says the company, mainly for its Tod’s and Roger Vivier brands. At reported rates, revenues totalled €226.1 million.
Sales through its directly run stores totalled €134 million at constant rates, down slightly on the same period last year. At reported rates, sales were €127 million. Same-store sales fell 4.4 per cent.
Chairman/CEO Diego Della Valle says the results match expectations as the effect of new business models are not yet visible.
“Regarding our distribution, we are transitioning to an omni-channel model aimed at connecting seamlessly both our stores and our fast-growing e-commerce. If the strategic plan implementation continues according to our expectations, I believe we can achieve excellent results in a reasonable timeframe.”
Difficult home market
At constant exchange rates, Tod’s sales totalled €124.6 million for the quarter, up 1.3 per cent. This value fell to €119.6 million at reported rates.
Revenues for the Hogan brand were €56.3 million at constant rates and €55.7 million at reported rates. The company blames the decline on the difficulty of the Italian market, noting that the brand posted double-digit growth in Europe and in China.
Roger Vivier sales totalled €40.2 million at constant rates, down 2.8 per cent, with the total €37.8 at reported rates. Finally, sales of Fay apparel were €12.8 million, hit by the weakness of the domestic market, mainly in the wholesale channel.
Revenues from shoes eased to €188.6 million at constant exchange rates. Excluding the exchange rate impact, the value of sales was €182.2 million.
Sales of leather goods and accessories totalled €31.1 million at constant rates, up 3.8 per cent thanks to a different merchandising mix. At reported rates, revenues of this category totalled €29.6 million.
Apparel sales were €14.2 million at constant rates and €14.1 million at reported rates.
At March 31, the group’s distribution network comprised 276 directly run stores and 118 franchised outlets, compared to 274 and 107 respectively a year earlier.