Tod’s posts sales increase in third quarter

Worldwide
Published:  13 November, 2020
Credit: Hogan

The Italian fashion label said that sales had significantly improved in the third quarter, with double-digit growth in China, while the e-commerce channel saw a “very strong growth” in the first nine months of the year.

In the first nine months of 2020, consolidated sales for the Tod’s Group amounted to €452.6 million, down 33.2% year-on-year. For the third quarter, sales totalled €195.7 million, down 12.3% from the same quarter in 2019. According to Tod’s, the impact of currency fluctuations is slightly negative; at constant exchange rates, meaning by using the average exchange rates of the first nine months of 2019, including the related effects of hedging contracts, sales would have been €453.8 million, down 33% from the same period of 2019.

During the third quarter, Tod’s said the situation of the distribution network gradually normalised, and at the end of the quarter almost all the stores were regularly opened. The company said the level of operations has been very different in the various areas of the world, with Mainland China as “the liveliest market”, where revenues recorded solid double-digit growth, progressively accelerating. Sales in Europe and the U.S. are said to be “still very weak”, as these regions have been heavily penalised by the absence of tourists. The e-commerce channel is reported to have continued to grow at solid double digits. “This is a priority channel for the Group, with additional investments, to expand the customer base, also using the new digital forms of communication. During the third quarter, the first test on the European market of the omni-channel distribution model was launched”, said Tod’s.

In the first nine months of the year, revenues in the leather goods declined 43.4% at reported rates, while that of footwear fell 31.7% and apparel 30.5%. Over the same period, and at reported rates, revenue for the Tod’s brand declined 38.6%, Hogan 27.4%, Roger Vivier 26% and Fay 34.2%.