Tod’s grows in first nine months of year thanks to China, USA
Tod’s is making up for lost ground in the last part of 2021. The Italian luxury group recorded a 37.6% revenue growth in the first nine months of this year, reaching €622.6 million. However, Tod’s sales were still down 6.7% compared to the same period in 2019, before the pandemic. In Q3, sales increased by 14.6%, reaching €224.3 million, and were “higher than those recorded in Q3 2019,” notably posting double-digit growth in the “leather goods and accessories” categories.
“The revenues of the third quarter confirmed the trend of improvement that we have begun to register for some time,” noted CEO Diego Della Valle in a press release. “The Chinese market is growing and continues to give us excellent results and, thanks to local customers in individual countries, we are also enjoying good success throughout the rest of the world. The e-commerce channel is growing very significantly and is giving excellent results, thanks to the investments made,” added Della Valle.
Greater China, the group’s main market, accounting for a third of its overall revenue, surged by 79.5%, generating a revenue of €224 million between January and September 2021 (up 45.4% over 2019), though it is “slowing down gradually towards the end of the year.” Tod's noted that sales in Asia were also hampered by a weak Q3 performance in Japan.
In the USA, a smaller market for Tod’s, with a revenue of €41.4 million in nine months, sales were up a healthy 60.1%, though they were down 13.1% compared to the same period pre-Covid, two years ago. On the same comparison basis, Q3 sales in the USA instead exceeded 2019 levels. In Italy, the group’s second most important market with a revenue of €151.4 million over nine months, sales increased by 22.2% compared to 2020 - when the majority of Tod's stores were shut - but lost 22.5% compared to 2019. In the rest of Europe, sales grew by 10.5%, though they were lower than in 2019 by 28%.
The direct retail channel, which accounts for 72% of the group's revenue, posted a strong performance in the period, growing by 47.1% over 2020, though it was down 2.5% on 2019. As of September 30, Tod’s operated 312 directly owned monobrand stores, and 96 franchised ones. “The wholesale channel confirms its physiological downsizing worldwide, particularly visible on the European markets,” noted Tod’s in the press release.
Roger Vivier has become the group’s second most important brand, posting a revenue of €161.4 million over nine months, and recording the best performance in the period (it was up by 51.4% compared to 2020 and by 14.2% compared to 2019). Tod’s instead produced a revenue of €296.1 million, up 40.1% over 2020 but down 12.6% compared to 2019. Hogan and Fay, even though both recorded revenue growth, continue instead to be penalised by “their greater exposure to the Italian and European markets and to the wholesale channel.”
With the publication of the group's quarterly results, Tod’s also indicated that it will pay a “resignation incentive” of €1.4 million to former CEO Umberto Macchi Di Cellere who, after four years of good and loyal service, was replaced last month by new managing director Simona Cattaneo.
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