Tod's Group SpA has announced that it will cut back on the number of new stores planned for 2017.

On Tuesday, March 14, when the group announced their 2016 results, chief financial officer Emilio Maceralli said Tod's now plans to open between nine and 13 new stores in 2017. They also said they will close about six stores this year too.

“Mainland China is finally rebounding compared to a very bad situation in the last couple of years,” Macellari said to Footwear News. While retail sales in China were strong for a few years, the country's recent economic crisis put a dent in their retail landscape, and luxury goods struggled.

For 2016, the Sant’Elpidio A Mare-based group reported a decrease in net profit and margins due to the purchase of the Roger Vivier brand and a rise in labor costs.

Net profits in 2016 were 86.3 million euros versus 101.22 million euros for 2015.

Earnings before interest, tax and depreciation also declined with an 18 percent margins for sales in 2016 versus a 19.5 percent margin for 2015.

The following numbers have been confirmed as preliminary figures: In the 12 months that ended December 31, sales fell 3.2 percent to 1.1 billion euros, compared with 1.03 billion euros in 2015. At constant exchange rates, sales were down 3.8 percent. Italy showed a 3.5 percent drop to 311.5 million euros, although in the rest of Europe revenues edged up 0.6 percent to 250 million euros. Revenue in America was hurt by a decline in tourism, and sales were down 8.4 percent to 96.7 million euros.

In the rest of the world, sales were up 0.9 percent to 135.5 million euros. South Korea saw double-digit revenue growth, although Japan was stagnant.

To help further growth, Tod's is revamping their approach to stores. Like many luxury brands, collaborations are becoming important to them. For example, their recent collaboration with tattoo artist Saira Hunjan on a capsule collection of handbags and shoes proved to be successful.

Like all luxury brands nowadays, Tod's will also be looking at expanding their e-commerce operations. The group is confident that 2017 will be a good year.

Also read: Tod's reports 3.2 percent fall in FY16 sales

Photo: via Tod's Facebook