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.


Comment Manually

I have read and agree to the Terms and Conditions and Privacy Policy.

Inside Retail Polls

What do you think of the new Zara logo?

    FREE NEWS BRIEFS Get breaking news delivered