Tod’s sales increased by 17.0 percent year-over-year to €178.7 million in the first quarter, underpinned by triple-digit growth in Greater China sales and the strong performance of its Roger Vivier brand. At constant currency rates, sales were up by 18.8 percent although they were still 16.3 percent lower than the first quarter of 2019.
Sales at Roger Vivier surged by 59.0 percent to €48.6 million, and were up by 62.8 percent in local currencies, thanks in part to the brand’s higher exposure to Asian markets. For the Tod’s brand, sales increased by 5.5 percent to €76.7 million and were 7.6 percent higher in local currencies. Hogan sales grew by 11.5 percent to €44.3 million and were up by 11.9 percent in constant currencies. Fay instead saw sales decline by 6.9 percent to €9.0 million, with a 6.9 percent decrease in constant currencies as well.
In Greater China – which encompasses Hong Kong, Macao and Taiwan along with mainland China - revenues increased by 136.7 percent to €62.8 million compared to the year earlier and were 141.9 percent higher at constant exchange rates. The region, the hardest hit in the first quarter of 2020 by the Covid-19 pandemic, saw revenues rise by 27.6 percent compared to the first quarter of 2019. It is the only region that has seen growth compared to two years ago.
Tod’s said its first-quarter performance remained heavily conditioned by the pandemic. Globally, an average of 84 percent of stores were open for business, a figure that dropped to 67 percent in Italy and to 47 percent in the rest of Europe.
Tod’s strong performance in Greater China offset negative showings in most other areas of the world. Revenues in Italy declined by 6.6 percent to €43.4 million while revenues in other European markets decreased by 13.1 percent to €37.7 million and were down by 12.6 percent in constant currencies. Sales in the Americas declined by 20.4 percent to €9.3 million and were 15.4 percent lower at constant rates. Revenues for the rest of the world edged up by 3.4 percent to €25.5 million, with a 6.2 percent gain in local currencies.
By product category, footwear sales increased by 19.8 percent to €148.1 million and sales of leather goods and accessories rose by 8.8 percent to €19.5 million, as Tod’s highlighted the “excellent” results of new collections of both shoes and leather goods and accessories. In local currencies, revenues for footwear rose by 21.7 percent and revenues for leather goods and accessories rose by 11.5 percent.
Revenues through directly-operated stores (DOS) and the proprietary e-commerce platform increased by 26.8 percent to €117.3 million and were up by 29.4 percent at constant currencies, with “very strong” growth for e-commerce. Sales to franchise and independent retailers inched up by 1.9 percent to €61.4 million and were 2.7 percent higher at constant rates.
The company had 300 DOS and 99 franchised stores at the end of March, compared to 291 DOS and 114 franchised stores the year earlier.
During a conference call with financial analysts, Tod’s’ chief financial officer, Emilio Macellari, said that it was confident that the company could meet market expectations of full-year sales of €741 million. The consensus is “totally feasible,” he commented. In 2020, Tod’s posted sales of €637.1 million, down 30.4 percent from a year earlier.
Macellari also indicated that the shoemaker could collaborate with LVMH, such as sharing space in shopping centers, but that nothing has been decided or discussed with the French luxury goods group. LVMH has increased its stake in the Italian company to 10 percent from 3.2 percent by purchasing shares from Tod’s’ chairman Diego Della Valle.