Italy's Tod's says 2017 revenues down 4%, new strategy to yield results soon
Italian footwear firm Tod’s said its new strategy focused on more collections and classic looks would deliver results soon, after posting full-year results that were in line with market expectations.
The Milan-based Tod’s Group said consolidated sales totalled 963.3 million euros in 2017, down 4.1% from 2016, or 973.4 million euros (-3.1% from the previous year), at constant exchange rates.
The Italian group, known for its Gommino loafers, posted an 11 percent drop in 2017 core profits to 160.5 million euros ($199 million).
In the fourth quarter, sales totalled 241.1 million euros; the trend slightly negative, "but better than in the first nine months of the year," said the Group in a statement.
"At year-end, the Group returned to a positive net financial position, also considering the purchase of the Roger Vivier Brand, thanks to a good cash generation, deriving from effective working capital and cost management," said Diego Della Valle, Chairman and CEO of the Group.
"The e-commerce sales channel, top priority of our investment strategy, is giving excellent results, growing at double- digit figures. [The group is ] creating both special flagship stores, made by different artists and architects, and pop-up stores, which are brought around the world to increase brand awareness and sales," added Della Valle.
By brand, Tod’s sales totalled 515.7 million euros in 2017, down 6.6%; the decrease mainly due to the trend of shoes, "also penalised by some delays in deliveries, which occurred at the start of the season, and were not recovered," said Tod's.
Hogan revenues were down to 203.9 million euros, impacted by a weakness of the Italian market, "while the results abroad were positive in both retail and wholesale.
Luxury footwear brand, and star performer for Tod's, Roger Vivier totalled 179.3 million euros in sales, up 9.7% form 2016, followed by the Fay brand, at 63.5 million euros, up 1.4%. The brand registered positive results both in Italy and in the European countries, said Tod's.
Looking forward, under a new strategy dubbed “Factory”, the group will use multiple collections throughout the year to better engage with its customers, focusing more on its classic lines of clothes and accessories rather than more fashionable ones.
"We are all focused on implementing the strategic and industrial plan presented during the November Investor Day, which we hope will give results in the near future. Very good is the feedback gathered by all the brands during the presentation of the collections of the next Autumn/Winter; particularly appreciated is the strong creative evolution in interpreting the iconic products of the group," added Della Valle.
"Each brand is following its own strategy, focusing on all future development and the investments necessary to achieve the planned results. We are increasingly convinced that our business model to present more than two collections per year and to prepare capsule collections and limited editions supported by adequate digital communication is effective.We are gearing up with speed and conviction to have strong and adequate digital marketing and PR structures all over the world," he added.
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