Tod’s CEO trusts in new strategic plan
15/05/2018
The Tod’s brand was the only one of the group’s brands to achieve an increase in revenue during the quarter. Its sales totalled €124.6 million, an improvement of 1.3% year on year. This was led by growth in sales of the brand’s shoes.
The group’s other brands all saw their sales fall, including Hogan (-5.2%), Roger Vivier (-2.8%) and Fay (-12%). These figures were all calculated based on constant exchange rates.
The Tod’s group saw a fall in revenue from all its key categories, including a 0.9% dip in revenue from shoes and a 3.8% drop in revenue from leathergoods. Apparel was the hardest hit, with its revenue for the quarter falling 9.6% year on year.
The group’s overall decline in revenue was driven by poor performance in its domestic market. Sales in Italy were 11.6% lower year on year. In contrast, revenues increased in all overseas geographical regions.
Diego Della Valle, chairman and CEO of Tod’s, said: “The Q1 results are in line with our expectations, since the new business model’s effects cannot be visible yet. We are in the process of implementing the new plan and all the people involved are working hard. We are consistently pursuing our goal of keeping the quality of our products at the highest possible levels, with an increasingly strong creative component.”
Among the areas he said Tod’s is looking to strengthen is its distribution network, which it is attempting to move to an omni-channel model, and its marketing and communications teams, which are upping their focus on the digital marketplace.
He added: “Our manufacturing sites are best-in-class for quality and flexibility: they can be efficient in product customisation and capsule collections production, both required processes to effectively satisfy new consumers’ needs all over the world. Therefore, I believe that, if the new strategic plan implementation continues according to our expectations, we can achieve excellent results in a reasonable timeframe.”
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