- Prachi Singh |
According to the preliminary results for the full year, Tod’s Group consolidated sales were 963.3 million euros (1,196.6 million dollars), down 4.1 percent from FY 2016. In the fourth quarter, the company said, sales totalled 241.1 million euros (299 million dollars); the trend was slightly negative, but better than in the first nine months of the year. At constant exchange rates, Tod’s said, sales would have been 973.4 million euros (1,208 million dollars), down 3.1 percent from the previous year.
Commenting on the preliminary figures, Diego Della Valle, Chairman and CEO of the Tod’s Group, said in a press release: “Today’s results are in line with our expectations and they highlight improvements in the last part of the year. The development of our DOS network remains key, in particular the attention to the like-for-like growth that, when everything will be fully operational, will definitely contribute to the achievement of our targets. We have defined new store formats and a pop-up store project, which we will run around the world, in some cases in collaboration with our partners. Therefore, I’m confident that we can think of the future in a very positive way.”
Review of Tod’s full year performance
Tod’s brand sales totalled 515.7 million euros (640 million dollars) in FY 2017; down 6.6 percent compared to the previous year, which the company attributed to the trend of shoes, penalized by some delays in deliveries, which occurred at the start of the season, and were not recovered. Hogan revenues declined to 203.9 million euros; due to the weakness of the Italian market, while the results abroad were positive, on both the retail and the wholesale channels.
Roger Vivier posted 179.3 million euros (222.6 million dollars) in sales, up 9.7 percent from FY 2016 driven bt positive results in all the main markets. Finally, revenues of the Fay brand were 63.5 million euros, up 1.4 percent from FY 2016. The brand, the company said, registered positive results both in Italy and in the European countries.
Revenues from shoes were 757.9 million euros (940.9 million dollars), down 3.2 percent from FY 2016, showing a visible improvement in the fourth quarter. The company added that due to its greater exposure to the wholesale, this category is also the most affected by the weakness of this channel. Sales of leather goods and accessories totalled 135.8 million euros (168.5 million dollars), down 3.6 percent from FY 2016 and sales of apparel were 68.7 million euros (85 million dollars), broadly in line with 2016.
Retail sales positive, wholesale suffers
In FY 2017, Tod’s said, domestic sales were 298.2 million euros (370 million dollars); down 4.3 percent, mainly due to the weakness of the wholesale channel, mainly in secondary cities. In the rest of Europe, the group’s revenues totalled 245.1 million euros (304 million dollars), in line with FY 2016. The retail network posted positive results, while the wholesale channel was weak.
In the Americas sales amounted to 78 million euros (96.8 million dollars), down 19.1 percent from FY 2016, while revenues in Greater China totalled 212 million euros (263 million dollars), up 3 percent from FY 2016. Mainland China, which represents more than half of this region, registered positive results; Hong Kong and Taiwan were still negative. In rest of the world, the group’s sales were 130 million euros (161 million dollars), down 3.5 percent from FY 2016. In the fourth quarter of the year, Japan recorded a strong improvement in results, while the Korean market remains difficult.
In FY 2017, sales through DOS totalled 621.1 million euros (771 million dollars), representing approx. two thirds of consolidated turnover. The same store sales growth (SSSG) rate, at constant exchange rates was down 2.8 percent in the fiscal year. As of December 31, 2017 the group’s distribution network included 275 DOS and 112 franchised stores, compared to 272 DOS and 107 franchised stores last year.
Revenues to third parties totalled 342.2 million euros (425 million dollars); down 8.4 percent due to the weakness experienced by some important markets, such as Italy and USA.