Tod’s returns to the past: an OK quarter, but China puts the brakes on Vivier

Tod's returns to the past: an OK quarter, but China puts the brakes on Vivier

The brand Tod’s, leather goods and the USA are pushing the group led by the Della Valle brothers beyond pre-pandemic levels. In fact, the first quarter of the year was satisfactory, despite a March held back by the zero Covid policy in China. The most affected was Roger Vivier, the brand that had shone brighter than the others in the last period. “The goal we have set for ourselves is to focus on the maximum asset value we can give to the individual brands and, therefore, to the Tod’s Group. In order to achieve this, we will do whatever is necessary, ” says Diego Della Valle (left, in the Imagoeconomica photo). Tod’s, therefore, returns to the past and goes beyond even the forecasts of some financial analysts.

Tod’s returns to the past

“The month of March,” underlines Della Valle, “was affected by the slowdown in the luxury sector in the Chinese market”. Although, in general, shop revenues ‘were double-digit higher in this quarter than in the first quarter of 2019“. This testifies to the group’s uneven performance in the January-March 2022 period. The best brand was Tod’s, whose revenue, at constant exchange rates, was up 33% compared to 2021. A good sign, given that the brand accounts for about half of the Marche-based group’s revenue.

China puts the brakes on Vivier

If Tod’s is flying, Roger Vivier (pictured, right) is holding back: its turnover has grown “only” by 4%, much less than it did in the last quarterly reports. The brand, after all, is very exposed to the Chinese market and its March was a deficit month due to the closure of shops due to the pandemic. Hogan (+15%) and Fay (+20%) did well.

Winning leather goods

Significant differences also existed at product level. Leather goods sales rose by 60%. That of footwear, which generates almost 80% of total revenue, grew by 14%. The results at geographical level were also opposite: Americas +59% and China +2%. Overall, in the first three months of 2022, Tod’s Group consolidated sales stood at 219.6 million euros. In other words: +20% at constant exchange rates over 2021, up from 216.4 millioneuros in the same period of 2019, and higher than Banca Akros’ expectations of 212 million euros.

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