Milan—Another luxury footwear and accessories brand reports a slowdown: Tod’s SpA today reported that its sales and revenue for the first nine months of the year were flat, hindered by continued weakness in Italy.
For the nine month ended Sept. 30, the parent to Tod’s, Hogan and Roger Vivier said its operating profit was flat at 199.5 million euros (about $267.5 million). Sales for the period were up 0.4% to 752.6 million euros (about $1.01 billion).
Most of the slowdown could be blamed on Italy, which accounts for about 35% of Tod’s sales, and where sales have dropped 18.6% over the last nine months.
Asia, U.S. Sales Surge
Tod’s also reported that the drop in Italy could be attributed to its decision to focus on selling its shoes, apparel and accessories through its own stores rather than wholesale accounts. “The goad is to preserve the brands’ exclusivity.”
Some of that drop in Italy was offset by strong increases in Greater China, where sales were up 27.9% to 180.8 million euros, and the Americas, which sales rose 13.6% to 66.2 million euros.
“In line with our plans, we achieved outstanding results abroad, mainly on the Asian and U.S. markets. The Group’s strategy to pursue an international expansion while rationalizing the Italian wholesale distribution is producing the expected results, despite the markets’ volatility,” said Diego Della Valle, chairman.
By brand, Tod’s sales increased 3.1% to 448.6 million euros. Roger Vivier posted a 65.7% increase to 83.2 million euros. But Hogan, which is strongest in the Italian market, reported a 13.7% decrease to 174.7 million.
The Group’s shoe sales as a whole were up 4.5% to 580.1 million euros. Leathergoods were up 2.7% to 120.6 million euros and apparel sales hit 51.1 million euros.
As planned, we have done all the investments necessary for the development of the brands and of the distribution network, while improving our positive financial position, achieving all the targets,” Della Valle said. “Therefore, I can confirm our expectations to keep on growing in sales and profits.”