Tod’s to shift strategy after disappointing results
16/09/2016
In July, the company reported a 3.4% decline in sales to $557.3 million. Revenue from footwear during this period was down 2.5% to $448.3 million and sales of leathergoods and accessories dropped 10.7% to $77.6 million.
“As for the future, our strategy will be to focus more and more in the world of high-quality products, footwear, handbags and small leather goods, noting more and more the values that have made famous our brands, the craftsmanship, the Italian way of life and the strong innovation,” said Diego Della Valle, CEO of Tod’s.
Chief financial officer, Emilio Macellari, said Tod’s is considering closing some stores in 2017. He added that store openings would be “limited” in the future.
Mr Della Valle said the company would focus on the “organic growth of the existing distribution network”, with new openings only taking place in “special locations”.
Mr Macellari described the performance of the company’s leathergoods business during the first half of the year as “very poor”, but said the new handbag collection coming in October will help it improve. He rejected suggestions that Tod’s will distance itself from its core footwear business, saying it remained part of the company’s overall strategy.
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