“When the markets finally return to normality, we will be ready to start a durable development cycle”. Diego Della Valle, president and CEO of Tod’s remains positive. On Wednesday, January 27th, 2021, the group approved the preliminary results for 2020’s sales, which was affected heavily by Covid-19. Revenue in the 4th quarter decreased by 22.6%, while the decrement for the whole year was of 30%. The company has underwritten an agreement to raise up to 500 million euro in capital, which is tied to sustainability objectives, in order to strengthen its financials.
Covid-19 weighs down results
Tod’s consolidated revenue in 2020 was of 637.2 million euro (down 30.4% at current rates). The decrease is in line with the consensus of the company, forecasted at 636 million euro. Considering regions, China shines with a “double-digit” growth during the 4th quarter- The brands, at constant rates, all lost ground. Tod’s overall sales lost 35.2%, Roger Vivier’s -19.5%, Hogan’s -27.9% and Fay’s -33.4%. As far as product categories go, footwear lost 28.6%, accounting for 80% of all the group’s revenue.
The reasons to be positive
“We are happy with the results of our e-commerce channel, as it registered a progressive growth during the year – commented Mr. Della Valle -, reaching a revenue that was beyond our expectations. This confirms the interest of our clients for our products”. The patron also discussed the “excellent feedbacks” for the new brand collections.
What are the group strategies? “We continue to put intense attention to costs, as well as to adopting great prudence in delivering our goods to stores – he answers -. Particularly for the wholesale channel, which is going through a difficult period. Our top priority is to consolidate our communication strategy, specifically the digital one”. The Group’s owner announced the operation focused on strengthening the financial stability: “so that we may be ready to evaluate any potential opportunity that the market can offer at a time like this”.
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