Italy’s Tod’s Group announced first-quarter revenues surged 23 percent to EUR 270.5 million (USD 295.63 million), coinciding with a recovery in sales in its Greater China region.
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During the three months ending March 31, Greater China sales surged 29 percent to EUR 88.6 million, after some weakness in the first days of the year. The region went on to experience a sudden recovery with the easing of the strict restrictions imposed by the central government to face the Covid-19 pandemic. The owner of Tod’s and Rogier Vivier brands said it continues to maintain double-digit growth rates both in mainland China and, even more, in Hong Kong and Macao.
Elsewhere Tod’s Group’s the Rest of the World area was also very strong during the quarter, up 32 percent to EUR 48 million, driven by the excellent results in Japan, Singapore and the Middle East.
The retail channel, which represents more than 70 percent of the group’s turnover, recorded 23 percent growth.
“Sales data for the first quarter of 2023 confirm the excellent performance of our group: all brands recorded solid double-digit growth in revenues. Results were outstanding for Tod’s and Roger Vivier, with excellent feedback in all product categories, confirming our customers’ ever-increasing appreciation for the very high quality of our products, their craftsmanship and their Italian lifestyle,” said Diego Della Valle, chairman and CEO.
“All geographic areas are growing. The group recorded excellent results in both the Italian and the European markets, thanks to both solid local demand and tourists’ purchases. The contribution of the Chinese market, where our group is present with an important network of stores, was very important, with the returning to excellent growth rates following the lifting of the Covid restrictions. We remain focused on our main goal to increase the equity value of both our group and our individual brands, through our continuous commitment to strengthen their positioning with the needed investments in marketing, communication and managerial skills, albeit in a logic of cost control and improvement of operational and managerial efficiency. We continue to invest in our supply chain, to ensure the highest possible quality for our products.
“We will continue to grow selectively our distribution network, while remaining focused on both improving organic growth and developing the omni-channel distribution. The macro-economic environment remains unpredictable; but considering the good sales trends we experienced in April and the excellent orders’ backlog for the winter collections, I’m confident about the group’s future results.”
As of March 31, the group’s distribution network consisted of 333 DOS and 89 franchised stores, compared to 318 DOS and 86 franchised stores one year ago.