Tod’s Plans to Re­vive Sales After a Year of Slumps

Shoes & Accessories - - Contents -

Hurt by its whole­sale chan­nel and a poor per­for­mance of its core footwear cat­e­gory, sales at Tod’s SPA fell 4.7 per­cent to $836.7 mil­lion in the first nine months of the year.

“The re­sults are par­tially af­fected by some un­ex­pected late de­liv­er­ies, and by some weak­ness in the whole­sale chan­nel, that in cer­tain mar­kets suggested a pru­dent ap­proach due to its fi­nan­cial trou­bles,” said chair­man and CEO Diego Della Valle. “Our group is to­tally fo­cused on ex­e­cut­ing the pre­vi­ously de­fined new busi­ness model, and we deem the strat­egy cho­sen for the fu­ture devel­op­ment of our brands right and co­her­ent.”

“Key points to the suc­cess of our plan are both the aware­ness of con­sumers, more and more in­no­va­tion/cre­ativ­ity-ori­ented and the new chan­nels of com­mu­ni­ca­tion and dis­tri­bu­tion needed to cap­ture their in­ter­est. We are grow­ing our web and e-com­merce pres­ence very fast, and we are de­vel­op­ing our ‘stores of the fu­ture,’ ready to em­brace all the new dis­tri­bu­tion chan­nels, with­out leav­ing be­hind the ex­al­ta­tion of the ex­cel­lence, the qual­ity and the style, which are unique el­e­ments of our prod­ucts. For the cur­rent year, we are con­fi­dent to de­liver re­sults in line with mar­ket ex­pec­ta­tions.”

Sales of the Tod’s brand were down 7.4 per­cent to 388.6 mil­lion eu­ros. Ho­gan sales de­creased 8.8 per­cent to 156.8 mil­lion eu­ros due to weak­ness in the Ital­ian mar­ket, mainly in the whole­sale chan­nel.

Rev­enues of the core footwear cat­e­gory were down 4.9 per­cent to 573.7 mil­lion eu­ros due to the pru­dent at­ti­tude taken to­ward the whole­sale chan­nel and to a dif­fer­ent tim­ing of de­liv­er­ies, the com­pany said in a state­ment.

Sales of leather goods and ac­ces­sories saw a 3.8 per­cent de­crease to 99.8 mil­lion eu­ros, and ap­parel posted a 3.2 per­cent drop to 47.9 mil­lion eu­ros, re­flect­ing Fay’s per­for­mance.

Rev­enues in Italy de­creased 6.7 per­cent to 227.6 mil­lion eu­ros. In the rest of Europe, sales to­taled 182.9 mil­lion eu­ros, down 2.9 per­cent, lifted by the re­tail net­work but hurt by a weaker whole­sale chan­nel.

In the Amer­i­cas, rev­enues plunged 17 per­cent to 57.6 mil­lion eu­ros due to low traf­fic in the stores and dif­fi­cul­ties faced by ma­jor depart­ment stores.

The group’s rev­enues in Greater China were up 1.4 per­cent to 155.1 mil­lion eu­ros. Main­land China showed pos­i­tive re­sults, but Hong Kong was still neg­a­tive, con­firm­ing timid signs of im­prove­ment regis­tered in the last few months, the com­pany said

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