The company is going to reduce the number of accessories, available for sale, in order to contain outstanding stocks. Besides that, they will enhance and develop the online channel. Yet, most of all, Diego Della Valle calls for “much prudence”. At the end of 2020 first quarter, Tod’s Group revenues have dropped by 30%. They have not made public any data about the group’s profitability and prospective outlook.
Down 30%
In the first three months of 2020, Tod’s Group consolidated turnover reached 152.8 million euros, therefore decreasing by 29.4% at current rates of exchange and going down by 29.7% at fixed rates of exchange. As reported by Reuters, financial analysts expected overall revenues to reach about 162 million euros. Let us focus on performances achieved by the group’s brands at fixed rates of exchange: Tod’s -32.2%, Hogan -26.5%, Roger Vivier -30.8%, Fay -19.2%. As regards their product units, footwear -29.8%, leather goods -35.8%, apparel -16.9%. In the Chinese market sales decreased by 47.5%, whereas e-commerce “keeps growing considerably”.
A policy based on much prudence
Diego Della Valle, Chief Executive Officer of the Group, commented: “We enjoyed a good trend at the beginning of the year as earnings increased in all areas. Our work was proving profitable then. Yet, the epidemic outbreak in China, and its fast spreading across the world, have abruptly changed whichever outlook.
Such emergency forced us to face everything again, therefore focusing our primary attention on several issues, mostly unknown, which we had to deal with rather unexpectedly. Since we realized we could not foresee nor control the future, we decided to implement a policy based on much prudence”. More specifically, “we are striving to market a limited amount of product in order to contain outstanding stocks, because of the crisis underway, and consequently prevent further problems”.
Nothing will ever be the same
While looking ahead, Della Valle has stressed the fact that “nothing will ever be the same”. Meanwhile, he announced a major transformation regarding collections, marketing and communication. “People will get more and more used to the online channel, which is going to be, in the future, the main playground for product advertising and marketing, storytelling and communication”.
Read also:
- Fashion: how brands respond to Coronavirus
- Diego Della Valle “urges faster investments” after Tod’s drop, -4%
