Tod’s has been enjoying recovery in the third quarter of the year. Reasons for such recovery do not come as a surprise: they are China and online sales. Yet the battle wounds, sustained throughout the first six months of the year, are still extremely present. “We believe that our Group, once we get over these times, will manage to achieve particularly good results”, claimed Chief Executive Officer Diego Della Valle (in the Imagoeconomica picture, right). Shoes have done better than leather goods as buyers have been showing a “growing interest in loafer and other models rather than in sneakers”.
Enjoying recovery in the quarter
In the period running from July to September, Tod’s Group revenues decreased by 12.3% compared to the same period of 2019. Looking instead at the first 9 months of the year, the group headquartered in Casette d’Ete lost one third of their earnings as the overall turnover reached 452.6 million euros (-33.2%). In the first 9 months (at fixed rates of exchange), Tod’s brand sales dropped by 38.5%; Hogan down 27.3%, Roger Vivier down 25.6% and Fay down 34.3%.
China and online sales
The group achieved some rewarding results in the Chinese market: here sales “enjoyed a sound increase, in double figures, in the third quarter. For the records, such positive trend kept up in October as well”, remarked Della Valle. Good news, likewise, from the digital channel, “which did speed up progressively and could therefore benefit from a growth in double figures throughout the 9 months – pointed out Della Valle –. While dealing with such unprecedented crisis scenario, even though we cannot predict much about the future, we are handling the whole of our activities already looking ahead to 2021”.
More loafer, fewer sneakers
Footwear, whose revenues from sales account for 82% of Tod’s overall turnover, suffered from a 31.5% downturn (at current rates of exchange). As reported by WWD, during a conference call with financial analysts, managing director Umberto Macchi di Cellere announced that the company is “observing a growing interest in loafer and other models rather than in sneakers”. Besides that, “the latest models, designed by Tod’s creative director, Walter Chiapponi, are being given extremely positive feedback and sales are going well”. As regards “leather goods and accessories”, earnings dropped by 43.4%.
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