Tod’s Q1 sales decline 1.8 percent

In the first quarter of 2018, at constant exchange rates, consolidated sales at Tod’s SpA were 234.1 million euros (278 million dollars), down 1.8 percent from Q1 2017. The company said, as expected, sales have been hugely affected by currencies fluctuations, mainly for Tod’s and Roger Vivier, which have an important presence abroad. At reported rates, revenues totalled 226.1 million euros (268.5 million dollars). In Q1 2018, sales through DOS totalled 134 million euros (158.9 million dollars) at constant rates, showing a slight decrease as compared to Q1 2017. At reported rates, sales were 127 million euros (150.6 million dollars). The same store sales growth (SSSG) was negative 4.4 percent.

Commenting on the company’s first quarter trading, Diego Della Valle, Chairman and CEO of the group, said in a media statement: “The Q1 results are in line with our expectations, since the new business model’s effects cannot be visible yet. Regarding our distribution, we are transitioning to a new omni-channel model, aimed at connecting seamlessly both our stores and our fast-growing e-commerce. I believe that, if the new strategic plan implementation continues according to our expectations, we can achieve excellent results in a reasonable timeframe.”

Sales performance of Tod’s brands in Q1

At constant exchange rates, Tod’s sales totalled 124.6 million euros (147.9 million dollars) in the first quarter, up 1.3 percent from Q1 2017. This value fell to 119.6 million euros (142 million dollars) at reported rates, due to the negative currencies impact.

Hogan revenues were 56.3 million euros (66.8 million dollars) at constant rates and 55.7 million euros (66.1 million dollars) at reported rates. The company said, the decline in sales at Hogan is entirely due to the difficulty of the Italian market. However, the brand posted double-digit growth in Europe and in China.

Sales of Roger Vivier totalled 40.2 million euros (47.7 million dollars) at constant rates, down 2.8 percent from Q1 2017. At reported rates, revenues amounted to 37.8 million euros (44.8 million dollars). Finally, sales of Fay were 12.8 million euros (15.2 million dollars); the decrease, as compared to Q1 2017, due to the weakness of the domestic market, mainly in the wholesale channel.

Tod’s results in Q1 across core product categories

Revenues from shoes were 188.6 million euros (223.9 million dollars) at constant exchange rates, with a small decrease as compared to Q1 2017. Excluding the exchange rate impact, the value of sales was 182.2 million euros (216.2 million dollars). Sales of leather goods and accessories totalled 31.1 million euros (36.9 million dollars) at constant rates; the 3.8 percent difference, as compared to Q1 2017, due to a different merchandising mix. At reported rates, revenues of this category totalled 29.6 million euros (35.1 million dollars).

Finally, sales of apparel were 14.2 million euros (16.8 million dollars) at constant rates and 14.1 million euros (16.7 million dollars) at reported rates); reflects the trend registered by the Fay brand.

In the first quarter, domestic sales were 70.2 million euros (83.3 million dollars); the decrease, as compared to the same period of 2017, due to the weakness experienced by the wholesale channel, mainly in provincial cities. In the rest of Europe, the group’s revenues totalled 58.4 million euros (69.3 million dollars) at constant exchange rates and 57.6 million euros (68.3 million dollars) at reported rates, showing a slight increase as compared to Q1 2017.

In the Americas sales amounted to 17.2 million euros (20.4 million dollars) at constant rates, up 2.3 percent from Q1 2017. At reported rates, revenues of this region totalled 15.4 million euros (18.2 million dollars). The group’s sales in Greater China totalled 52.5 million euros (62.2 million dollars), up 4.4 percent from Q1 2017; at reported rates, the value was 48.7 million euros (57.7 million dollars).

In the area “rest of the world” the group’s revenues were 35.8 million euros (42.4 million dollars) at constant rates, up 3.3 percent from Q1 2017. At reported rates, sale were 34.2 million euros (40.5 million dollars).

As of March 31, 2018 the group’s distribution network was composed by 276 DOS and 118 franchised stores, compared to 274 DOS and 107 franchised stores as of March 31, 2017. Revenues to third parties totalled 100.1 million euros (118.7 million dollars) at constant rates and 99.1 million euros (117.5 million dollars) at reported rates; the decrease from Q1 2017.

Picture:Tod's website

 

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