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Sales bounce back at Tod's

Jun 1, 2021 Italy
Sales bounce back at Tod's
Triple-digit growth in China, strong ecommerce and a good performance of the Roger Vivier brand have helped the Italy-based fashion group Tod’s to bounce back to grow by 17% at current rates in the first quarter (+18.8% at constant rates)
“The figures of the quarter reflect the different impact of the pandemic. We have registered triple-digit growth in China; the results of the Roger Vivier brand stand out. The e-commerce channel was also very strong, with an impressive growth, even higher than our expectations. We recorded excellent results in those areas of the world where we were able to keep the stores open, while the results were weaker in the countries of the western world, penalized by the long periods of closure of the shops. We are very happy with the performance of the Tod's brand and the excellent customer feedback on the new collections, which increasingly combine the DNA of craftsmanship and Italian Lifestyle with creativity and innovation (…) Despite the challenging global economic scenario, we are facing the current year with enthusiasm and optimism, very convinced of our products and our strategies”, commented Diego Della Valle, Chairman and CEO of the Group.

First Quarter Results

Tod’s reported consolidated sales for the period of 178.7 million euros, up by 17% from the first quarter in 2020. Currency fluctuations gave a negative contribution, mainly to Tod’s and Roger Vivier, which have the greatest presence abroad. At constant exchange rates (by using the average exchange rates of Q1 2020) sales would have been 181.6 million euros, up by 18.8% from quarter one in 2020. Revenue for the current year is still 16.3% lower than in the first quarter of 2019, at constant exchange rates. All brands in the portfolio, with the exception of Fay, increased sales in comparison to the first three months of 2020. However, when compared to similar period in 2019, only the Roger Vivier segment managed to grow (+12.9%).

Sales by Category

The main category of the group, footwear, posted an increase in sales of 19.8% from 2020. However, when compared to similar period in 2019 sales in the category declined by 14.3%. All categories declined when compared to the first three months of 2019. Leather goods already posted growth from 2020 (+8.8% in the first three months of the current fiscal year). Apparel continues in the red (going down by 1.3% from the first quarter of 2020 and by -17.7% from similar period in 2019).

Sales by Region

The pandemic affected the sales results of all the group's brands, in all geographic areas, product categories and on both distribution channels. The Roger Vivier brand, also thanks to its greater exposure to the Asian market, was the best performer in the quarter. Growth in sales registered in China deserves to be underline: +136.7% at current rates compared to the first quarter of 2020 (+27.6% compared to similar period in 2019).

The pandemic has heavily affected the Tod's business in the various regions of the world, both in the current year and in the comparison base for 2020, so the company introduced a comparison with 2019. It should be noted that in the first quarter of 2021, as a world average, stores were only open for 84% of the period. This percentage of operations drops to 67%, if referring to Italy, and even to 47%, if referring to the rest of Europe. Another element to be highlighted in the comparison between the two years is that the Chinese area was the most affected by the pandemic in the first quarter of 2020.

Sales by Distribution Channel

Tod’s announced “excellent results for the retail channel”, also driven by the very strong growth of the ecommerce channel. The results of the wholesale channel benefited from a different timing of deliveries between the two years, which partially offset the physiological downsizing of the channel, in place worldwide.


Distribution Network

As of the 31st of March 2021, the group’s distribution network was composed by 300 DOS and 99 franchised stores, compared to 291 DOS and 114 franchised stores by the end of March in 2020.

Image credits:devboutique.com

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