Tod’s returns to the prestigious One Billion Club. The luxury group led by Della Valle closed 2022 with a record revenue: 1.007 billion, compared to the 1.004 billion achieved in 2016. The value is equal to a 13.9% increment compared to 2021 and +10% on 2019. The decisive push for growth comes from the leather goods division: revenue generated by handbags, in fact, increased by 33%. An achievement that makes Diego Della Valle confident of the future. Like him, analysts are optimistic.
The decisive push of handbags
Tod’s communicated its preliminary data related to 2022’s sales. Consolidated revenue surpassed the 1-billion-mark (1.007 billion), a high achieved only in 2016. Analysts were expecting revenue to be 985 million euro. The group’s result was also supported by the price increment that all luxury players implemented, but also by the booming performance of the leather goods division, which grew by 33% and ensured high margins. For this reason, analysts expect Tod’s to continue on this trend and once again be profitable after the losses recorded in the 2019-2021 period.
Diego Della Valle, the group’s CEO, expressed his satisfaction and added that “growth was driven by the retail channel and the Tod’s brand, which recorded optimal results in all product categories. We are getting the first results of the medium-term strategy we have been implementing”. The main goal is “to grow the financial value of the group and each brand and making the necessary investments to achieve results”. DDV also listed its upcoming strategic steps. “We are continuing working on developing our distribution chain by opening new retail points in new markets. We also with to improve our organic growth”.
Young buyers and the brands
Della Valle also cited the group’s effort to “get closer to young buyers” and said he optimistic for 2023. “Considering the great start of the season our stores have had and the solid orders for next season, we are confident that future performances will be positive”. At current exchange rates, sales of the brand Tod’s (which generate about half of the group’s revenue), grew 19%, Roger Vivier +7%, Hogan and Fay +11%. As far as geographies go, revenue in the Americas increased by 31% by 43% in the rest of the world, thus covering the -8% generated by China. The domestic market also performed well with a 16% increase.