Tod’s Group sales witness a 4.4 percent decline in Q1

Tod’s Group consolidated sales for the first quarter of 238.5 million euros (261 million dollars), were down 4.4 percent from Q1 2016. At constant exchange rates, including the related effects of hedging contracts, the company said, sales would have been 237.1 million euros (260 million dollars), down 5 percent from last year.

Commenting on the first quarter trading, Group’s Chairman and CEO Diego Della Valle, said in a statement, “Following our strategic plan, we are in the process of completing the investments needed to face the important changes that are taking place in our industry. In particular, we are strengthening the management team, by hiring some new important members, to reinforce our communication and digital areas. Based on the above considerations, we look to the future of our Group with great confidence.”

Tod’s brand sales declined 6.7 percent in Q1

Tod’s sales totalled 123 million euros (135 million dollars); a 6.7 percent decrease, compared to the same period of the previous year, which the company said was mainly due to the performance of shoes, affected by a different timing of deliveries. Hogan revenues were 59.4 million euros (65 million dollars). Tod’s Group said the decrease is mainly due to the weakness of the Italian market, in particular in the wholesale channel.

Revenues of the Fay brand were 14.6 million euros (16 million dollars), broadly the same as in Q1 2016. Sales at Roger Vivier totalled 41.3 million euros (45 million dollars), up over 15 percent from the same period of the previous year, led by strong results in all markets, except for the US, which continued to be penalized by the sharp drop in tourist traffic.

Revenues from shoes were 190.2 million euros (208 million dollars). The decrease, as compared to the same period of 2016, the company said, is mainly due to the wholesale channel. Sales of leather goods and accessories totalled 32.4 million euros (35 million dollars), broadly aligned with Q1 2016. Sales of apparel were 15.7 million euros (17 million dollars), a small decrease from Q1 2016.

Domestic sales down 8.7 percent

In the first quarter, domestic sales were 79.4 million euros (87 million dollars); down 8.7 percent, mainly due to the weakness experienced by the wholesale channel in provincial cities. In the rest of Europe, the Group’s revenues totalled 57.3 million euros (62 million dollars); again impacted by the performance of the wholesale channel.

In the Americas sales amounted to 16.8 million euros (18 million dollars), down 15.7 percent due to lower traffic and weak performance of the wholesale channel. The Group’s revenues in Greater China totalled 50.3 million euros (55 million dollars), up 3.6 percent from Q1 2016. The company said, all the countries of this area achieved positive results, except for Hong Kong, which remained negative. Rest of the world sales were 34.7 million euros (38 million dollars), broadly aligned with Q1 2016. Japan and Korea, which are the main countries for the Group in this area, were positive.

In Q1 2017, sales through DOS totalled 136.8 million euros, (150 million dollars) broadly in line with Q1 2016. The same store sales growth (SSSG) rate was a decline pf 3.2 percent. As of March 31, 2017, the Group’s distribution network was composed by 274 DOS and 107 franchised stores, compared to 260 DOS and 100 franchised stores as of March 31, 2016. Revenues to third parties totalled 101.7 million euros (111 million dollars).

Picture:Facebook/Tod's