Roger Vivier growth has been revitalizing Tod’s financial situation. Despite that, the group’s turnover dropped by 4%. “We do need to speed up investments in order to develop and enhance our revenues. If we do not face further instability on the worldwide markets, we believe we shall soon achieve the expected accomplishments”. Such was the comment made public by Diego Della Valle, president and chief executive officer of the group, while presenting the group’s financial statements after the first nine months of 2019.
From January to September, Tod’s Group overall earnings amounted to 677.7 million euros, therefore decreasing by 4% at current rates of exchange and by 5% at fixed rates of exchange. According to a survey, carried out by Reuters, analysts were expecting revenues to reach 676 million euros on average.
Tod’s brand has been dropping by 9.7% at fixed rates of exchange. Homogeneous sales declined by 4.7%, slightly worse compared to the first term of the year (-4.5%, as reported by Reuters). “We have achieved positive results – announced the group in a press release – in the retail channel, as clients offered encouraging feedback about our new product lines”.
Hogan has been going down by 5.2%, though “in Greater China earnings increased in double figures, despite the Hong Kong precarious situation”; Fay declined by -11.6%.
The only brand that has been enjoying a positive trend is Roger Vivier, whose earnings have been increasing by 11.4%. On top of that, the brand is getting closer, in terms of turnover, to Hogan, “after achieving rewarding accomplishments in all the market areas where it plays, except for the American one”. Roger Vivier’s brilliant performance also drove footwear sales (whose decrease did not go beyond -4.4%), which have been doing better than leather goods and accessories (-6.6%). Italy is still the key market for Tod’s Group, though domestic sales have been decreasing by 10.2%.
“Quarterly achievements are pretty much in line with our expectations. We keep focusing our efforts on a mid-term strategic plan, formerly set”, remarked Diego Della Valle. “We rely a great deal on Walter Chiapponi’s skills and expertise: his Italian creativity, alongside his talent, will undoubtedly enable him to combine, in the best way, Tod’s Italian lifestyle with modernity and irony. However, top-notch quality and elegance, which are the brand’s distinctive features, will still play a leading role. Simultaneously, we shall keep taking forward the Tod’s Factory business model”. President Della Valle also emphasized that the group’s digital unit “is growing rapidly”, while expressing his satisfaction “about the capsule collection, created together with Alber Elbaz, and its image rewarding effects”.
Picture taken from Imagoeconomica