Tod’s Group signs credit agreement with various banks

Italy
Published:  29 January, 2021
Credit: Tod's

The Italian footwear and accessories brand said the loan facility will further strengthen its financial structure and mitigates the risk profile deriving from the current market situation.

For its fiscal year 2020, consolidated sales for Tod’s Group amounted to €637.2 million, down 30.4% from 2019. In the fourth quarter of 2020, sales amounted to €184.5 million Euros, down 22.6% year-on-year. In the fourth quarter, Mainland China recorded double-digit growth in revenue, while Europe and the U.S. were impacted by the closures imposed by the lockdowns and by the very low traffic even during the opening periods, given the absence of tourist purchases, according to the Group.

In 2020, sales of leather goods and footwear declined 39.6% and 29% respectively on reported rates. Sales of the Tod’s brand declined 35.6% in the period, Roger Vivier by 20.2%, Hogan by 28%, and Fay by 33.3%. Overall, Group sales in its home market Italy were down 37.2%.

On January 22, Tod’s Group signed a credit agreement with a pool of seven banks, coordinated by Intesa Sanpaolo, with IMI Corporate and Investment Banking Division, for a maximum total amount of €500 million. The Sustainability Linked Loan has a five-year maturity and is structured in a Term Facility of €250 million and a Revolving Credit Facility of additional €250 million. “This facility further strengthens the already solid Group’s financial structure and mitigates the risk profile deriving from the current market situation and contains a rewarding mechanism linked to specific ESG indicators”, said Tod’s.