In a statement, Tod’s said full year revenue last year was 967.5 million euros (about $1.34 billion) compared with 963.1 million in 2012. That was below the 986 million euros that analysts had expected.
Sales in its fourth quarter 2013 were 214.9 million euros.
Sales in Italy, which accounts for about 35% of total sales, fell 16% last year due to the looming recession and planned closures of unprofitable wholesale accounts.
New Italian Factory Slated
Sales in Greater China, however, were up 21.3% over the 2012, now accounting for about a quarter of Tod’s total. Sales in the Americas were up 10.5%.
By brand, Tod’s posted a 1.5% increase in sales to 578.1 million euros thanks to strong results in the shoe category.
Sales at Roger Vivier jumped 52.5% to 113.7 million euros, but fell 22.6% at Fay, which is the most exposed in Italy and the wholesale channel.
Hogan saw a 10.8% decline to 217 million euros mainly due to adjustments in its Italian network. However, sales internationally were up in the double digits with “brilliant results in China.”
By category, shoe sales continue to dominate the Tod’s Group with a 4.1% increase to 739.1 million euros. Accessories and leathergoods were down 2.8% to 160.9 million euros and apparel sales were down 23.6% to 65.8 million euros.
According to Diego Della Valle, chairman, Tod’s is building a new factory in Italy that will make high-quality accessories, adding that Tod’s is increasing investment to strengthen its distribution network and production capacity.
Last November, Chief Financial Officer Emilio Macellari said the company would likely miss its full year earnings estimate due to the weakness in Italy.
But some analysts predict a better second half this year.
“As the customer base becomes homogeneous … and as possibly the situation in Italy and Europe ceases to deteriorate further, the second half of 2014 should see a recovery in wholesale,” Deutsche Bank said on Jan. 20.