For the second year in a row, Tod’s has decided to omit paying a full-year dividend after posting a net loss of €73.2 million in 2020, despite a fiscal boost of €85.2 million, compared with a net profit of €46.3 million the previous year.

Initially, the Italian shoe maker had announced a 0.6 euro dividend per share on its 2019 results, but then withdrew the proposal because of the impact of the Covid-19 pandemic.

In 2020, Tod’s posted sales of €637.1 million, down 30.4 percent from a year earlier. Adjusted Ebitda fell to €69.5 million from €157.9 million and adjusted Ebit was a negative €93.7 million compared with a positive €3.6 million in 2019. Ebit was impacted by €28.7 million in write-downs on the Fay brand and stores.

The company believes that it can meet market expectations for 2021. Analysts anticipate full-year sales to come in at €742 million and Ebit to be a negative €35 million. Tod’s indicated that it is currently enjoying strong sales growth in mainland China and online, but noted that about 15 percent of its overall store network is closed because of Covid-19 lockdowns in various markets.

At the end of 2020, the group had 300 directly-operated stores (DOS) and 103 franchised stores, compared to 290 DOS and 115 franchised stores a year earlier. Tod’s expects seven to nine net openings this year, with a focus on the Roger Vivier brand and Asia.

The broker Equita believes that Tod’s could still be slightly loss-making at an operating level in 2022, with a forecast negative Ebit of €3 million.