ITALY: Tod’s 9-month EBIT flat on static sales
- Nine-month EBIT slightly down at EUR168.5m
- Sales up 0.4% to EUR752.6m
- Overseas sales up but domestic revenues slump
Luxury goods group Tod’s posted flat sales and earnings for the first nine months of the year, with strong foreign sales cancelling out notable declines in the Italian market.
The owner of the Tod’s, Hogan, Fay and Roger Vivier brands said its decision to rationalise wholesale distribution in Italy had “significantly affected” domestic sales, particularly for Hogan and Fay.
But, while revenues in Italy slumped by 18.5% in the period, Greater China was up 28% and the Americas 13.6%, Tod’s said, with Europe rising 4.6% and the rest of the world up 9.8%.
Roger Vivier was the fastest-growing brand, with revenues up 65.7% in the period, followed by Tod’s at 3.1%; but Hogan’s sales fell 13.7% and Fay declined by 26.3%.
The group's shoes division posted revenue growth of 4.5%, but leather goods and accessories was down 2.7% and apparel slumped by 27%, mostly because of Fay.
“In line with our plans, we achieved outstanding results abroad, mainly on the Asian and US markets,” said Diego Della Valle, Tod’s chairman and CEO.
“The group’s strategy – to pursue an international expansion while rationalising the Italian wholesale distribution – is producing the expected results, despite the markets’ volatility.”
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