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