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Sales impacted by currencies fluctuations at Tod's

Oct 4, 2018 Italy
Sales impacted by currencies fluctuations at Tod's
In the first half of 2018, consolidated sales were 491.9 million euros, up by 1.8% from the first semester in 2017, at constant exchange rates. Revenue has been hugely affected by currencies fluctuations
Diego Della Valle, Chairman and CEO of the Group, commented as follows: “Today’s results are a first validation that the strategy, announced during the last Inventor Day, is beginning to work; at constant exchange rates, both Tod’s and Roger Vivier’s revenues have returned to grow.... The new management team we have chosen to develop our new business model is already partially in place and will be completed soon. Today, the Board of Directors has also decided to initiate the integration of the related company Italiantouch, which will allow us to accelerate the implementation of the omni-channel distribution, to strengthen the e-commerce’s growth and to achieve significant synergies within the Group.”

In the first half of 2018, consolidated sales were 491.9 million euros, up by 1.8% from the first semester in 2017, at constant exchange rates, including the related effects of hedging contracts. Sales  have  been hugely  affected  by currencies  fluctuations, mainly for Tod’s and Roger Vivier, which have the highest presence abroad. At reported rates, revenues totalled 476.9 million Euros.

Performance by brand

At constant exchange rates, Tod’s sales totaled 265.5 million euros in the first six months of 2018, broadly aligned with the first semester in 2017. The brand recorded positive results in its retail network in the second quarter of the year, which offset  the  weakness  of  the  wholesale  channel.  The brand’s  turnover  totaled 256.2  million  euros  at  reported  rates,  due  to  the  negative currencies impact.
Hogan revenues were 106.2 million Euros at constant rates, up 7.5% from the same period of last year. The solid double-digit growth of Europe and China, which are the markets where the internationalization of the brand is currently focused, more than offsets the weakness of the Italian market.
Sales of Roger Vivier totaled 95 million Euros at constant rates, up 2.6% from H1 2017. In line with expectations, shoes  recorded positive results  in the second quarter, with the real start of  sales for the summer season. At reported rates, revenues amounted to 90.4 million Euros.
Finally,  sales  of  Fay  were  24.8  million  Euros;  the  decrease,  as  compared  to  H1  2017,  is  mainly  due  to  the weakness of the domestic market.

Performance by segment

Revenues from the shoes business totaled 395.6 million euros at constant exchange rates, up by 2.4% from similar period in 2017. At reported rates, the value of sales was 383.7 million euros.
Sales  of  leather  goods  and  accessories  totaled  68.4  million  euros  at  constant  rates,  registering  a  positive performance in the second quarter of the year. At reported rates, revenues of this category totaled 65.5 million Euros.
Finally, sales  of  apparel were 27.5 million Euros  at constant rates;  the performance broadly reflects  the trend registered by the Fay brand. 

Performance by geography

In the first half of 2018, domestic sales were 138.4 million Euros; the 4.8% decrease, as compared to the same period of 2017, is mainly due to the weakness experienced by the wholesale channel, mainly in provincial cities.
In the rest of Europe, the Group’s revenues totaled 126.7 million Euros at constant rates, up 6.2% as compared to H1 2017 (124.9 million Euros at reported rates).
In the Americas sales amounted to 40.3 million Euros at constant rates, broadly aligned with the amount of the first half of 2017, for both the distribution channels. At reported rates, revenues of this region totaled 36.5 million Euros.
The Group’s  sales  in Greater China  totaled 115.3 million Euros  at constant rates, up 6.3% from H1 2017;  at reported rates, the value is 109.1 million Euros. Positive results in mainland China, Hong Kong and Macao. Finally, in the area “Rest of the World” the Group’s revenues were 71.1 million Euros at constant rates, up 2.7% from H1 2017 (68 million Euros at reported rates).


Performance by channel

In the first half of 2018, sales through DOS totaled 311.9 million Euros at constant rates, showing a slight growth as compared to the same period of 2017. At reported rates, the value stands at 299.7 million Euros. The Same Store Sales Growth (SSSG) rate, calculated at constant exchange rates as the worldwide average of sales growth rates registered by the DOS network, is -2.2% in the first half of the year (from January 1st  to June 30th, 2018), showing a progressive improvement from the previous months.

As of June 30th, 2018 the Group’s distribution network was composed by 285 DOS and 122 franchised stores, compared to 270 DOS and 108 franchised stores as of June 30th, 2017. Revenues to third parties totaled 180 million euros at constant rates (177.2 at reported rates), up by 4.4% from the first half of 2017.

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