Tod’s sales beat expectations in 2021

Published:  26 January, 2022
Credit: Tod's

The Italian luxury group bettered expectations in its full 2021 financial results, reporting sales of €884 million (US$997 million), an increase of 38.7% on 2020 and 3.5% on pre-pandemic 2019.

In the fourth quarter alone, revenues amounted to €261.2 million (US$295 million), 41.6% up from the same period in 2020, and an increase of 9.6% on 2019’s fourth quarter.

The Tod’s brand saw a progressive improvement in 2021 (growing 13% on 2019 results in Q4 alone), and the Group put this down to a strong appreciation by customers for the brand's new collections, both in shoes and in the new families of leather goods and accessories.

Meanwhile, the Roger Vivier brand increased 16% on 2019 results, and sales figures for the Hogan and Fay brands were affected by greater exposure to the Italian and European markets and to the wholesale channel, but the Group remains satisfied with customer feedback.

In the fourth quarter of the year, revenues from leather goods and accessories grew at a solid double-figure compared to Q4 2019 and the full year’s results exceeded pre-pandemic revenues. Tod’s also noted that it is receiving excellent feedback on the new product families from customers worldwide.

Regions

Revenues in the domestic market recorded a progressive improvement during the year, the Group reports, and in the fourth quarter, they returned to the values of 2019, thanks to the solid purchases of local clients and Asian buyers.

The rest of Europe also improved, despite the slight slowdown in the last weeks of the year due to the new restrictions imposed by local governments to deal with the pandemic. This was impacted by the absence of tourists, especially from Asia.

The American market was also affected by the lack of purchases by tourists; however, it has recorded good progress during the year and revenues have returned to the levels of 2019 since the third quarter, posting a further acceleration in the fourth quarter.

For the entire year, the business in Greater China was very solid and revenues maintained a very strong double-digit growth compared to 2019. Meanwhile, the “Asia and Rest of the World” region recorded an excellent fourth quarter, driven by the significant improvement in results of Japan and South Korea, where revenues largely exceeded 2019 figures in the fourth quarter.

Group Chairman and CEO Diego Della Valle said: “The early feedback we are receiving from the new SS 22 collections currently in stores are very positive and they allow us to look forward to 2022 with optimism, provided that the current market conditions will not deteriorate due to the pandemic.”