Gruppo Tod’s has an ace up its sleeve: leather goods. The sale of handbags, backpacks and accessories, during the first 9 months of 2023, increased 19.5% at current exchange rates. Better than footwear (12.3%), but overall Gruppo Tod’s revenue grew 14.3% in the January-September period, compared to the same period of 2022. In light of these results, the entity believes it will be able to align itself with analysts’ expectations for the full year (1.14 billion euro and an EBIT of 93 million). While possible, it will still be difficult. Meanwhile, there are two people competing for the creative lead role freed by Walter Chiapponi.
Leather goods are the ace up the sleeve
Consolidated revenue reached 828.4 million euro in the first 9 months of 2023, up 14.3% on the previous comparable period. At constant rates, the revenue increment is +16.5%. Roger Vivier shined as a brand (+19.1%), with Fay also growing 22.2% (and generating 5% of the group’s revenue). Tod’s grew 12%, while Hogan 11.8%. The results, as highlighted by the Group’s CEO Diego Della Valle: “Especially brilliant performances by Tod’s and Roger Vivier. It’s the confirmation of the incremental appreciation of the high quality of our products by our clients, as well as the goods’ craftsmanship and their limeless elegance”.
Geographies
China grew 25%, but has slowed in the third quarter, as pointed out by Reuters. According to the group’s CFO, Emilio Macellari, reaching the EBIT consensus will be more difficult than the revenue one. Diego Della Valle has however stated he believes the future to be bright and lists the objectives. First: sustainability. Second: social solidarity, “with specific attention on young people to incentivize them to choose careers leading them to Italian craftsmanship”.
Chiapponi’s successor
When analysts asked who will replace Chiapponi, Macellari answered there are two candidates being considered (source WWD). The announcement will be made “in the near future”, but he asked analysts not to get too excited, as there will be no “large revolutions”.
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