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Tod’s H1 sales decline 3.4 percent

By Prachi Singh

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Management |REPORT

Tod’s preliminary sales figures for the first half of 2016 from January 1 to June 30, 2016 reveal that consolidated sales were 497.6 million euros (548.7 million dollars), down 3.4 percent from H1 2015. At constant exchange rates, the company said, sales would have been 493.2 million euros (543.8 million dollars), down 4.3 percent from last year.

Commenting on the first half trading, Group’s Chairman and CEO Diego Della Valle, said, “First half 2016 sales figures reflect an industry and market environment still characterised by instability and uncertainty. Even in this scenario, our plan of development continues: we are investing for growth in the coming years with ever more innovative products and with a very important marketing and communication strategy, on all channels.”

Tod’s brand revenues decline

Revenues for the Tod's brand amounted to 282.5 million euros (311.5 million dollars) in the first half; the decrease in sales compared to last year, mainly due to the sharp fall in purchases by tourists in Europe and the USA, and to the persistent weakness of the Greater China market. Hogan sales were 106.1 million euros (116.9 million dollars), down 2.5 percent from H1 2015, mainly due to the slowdown in consumption registered in the second quarter in the Italian market, by tourists, but also by local clients; positive results in the other regions.

Revenues for the Fay brand were 24.9 million euros (27.4 million dollars), up 8.8 percent. All the geographical areas, where Fay is distributed, registered positive results with double-digit growth in the Asian markets, where, however, volumes are not very significant yet. Finally, Roger Vivier registered 83.4 million euros (91.9 million dollars) in sales, up 6.2 percent from H1 2015. The performance was positive in all geographic areas, except for the American market.

Revenues across product segments and geographies

Revenues from shoes were 400.3 million euros (441.1 million dollars), down 2.5 percent from H1 2015, also due to the very challenging comparison basis, linked to the different timing of deliveries. Sales of leather goods and accessories totalled 69.3 million euros (76.3 million dollars). The figure for the first half reflects the negative trend of a part of the Tod’s collection. Finally, sales of apparel were 27.3 million euros (30 million dollars), up 3.7 percent from H1 2015.

In the first half of 2016, domestic sales declined 2.7 percent mainly due to the performance of the Hogan brand. In the rest of Europe, the Group’s revenues were down 1.7 percent owing to the sharp slowdown in consumption, especially of tourists, registered in the second quarter for the entire sector, in addition to a very challenging comparison basis. In line with the industry, the weakest countries were France and UK. In the Americas sales were down 6 percent reflecting the sharp slowdown in consumption registered in the second quarter of the year.

The Group’s revenues in Greater China decreased 9.5 percent mainly due to the weakness in Hong Kong; sales in mainland China, which represents slightly more than half of this region, were slightly negative. Finally, in the area “Rest of the World” the Group’s sales were up 4.1 percent from H1 2015, mainly driven by Korea.

Sales through DOS totalled declined 4.9 percent from the same period of 2015. As of June 30, 2016 the Group’s distribution network was composed by 261 DOS and 103 franchised stores, compared to 251 DOS and 93 franchised stores as of June 30, 2015. Revenues to third parties totalled 186.4 million euros (205.4 million dollars), slight lower than in the first six months of 2015.

picture:tods

Tod's