Tod’s S.p.A., the Italian company listed on the Milan Stock Exchange and holding of the luxury goods group of the same name operating in luxury and quality shoes, accessories and apparel with the Tod’s, Roger Vivier, Hogan and Fay brands, reported a 55.1 percent increase in sales for its first half of 2021 ended 30th June, 2021.
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In the first half of 2021, consolidated sales were US$470.69 million, up 55.1 percent from H1 2020. Currency fluctuations gave a negative contribution, mainly to Tod’s and Roger Vivier, which have the greatest presence abroad; at constant exchange rates, meaning by using the average exchange rates of H1 2020, including the related effects of hedging contracts, sales would have been US$479.08 million, up 57.8 percent from H1 2020.
Diego Della Valle, Chairman and CEO of the Group, commented, “The second quarter of the year confirmed an acceleration of the Group’s performance, especially in the areas of the world where the stores are working at full capacity.”
“Very strong growth in China, while the areas penalised by the absence of tourists are still weak. Roger Vivier registered solid results and consumer feedback on the Tods brand collections was very satisfactory, both for shoes and for all leather goods; we are also very satisfied with the good start of the Fall Winter collections currently in stores,” Diego Della Valle pointed out.
Good results were recorded both in the core business of shoes and in the new families of leather goods and accessories.
In the first half of 2021, the average opening rate of the store network was 85 percent, as a world average. This percentage of operations drops to 76 percent, if referring to Italy, and even to 61 percent, if referring to the rest of Europe.
Revenues in Greater China recorded a growth of 43.5 percent compared to the values of 2019, showing an acceleration in the second quarter of the year compared to the first. Conversely, new cases of infections and new store closures in Japan, Korea and other Asian countries caused a slight slowdown in the “Rest of the World” area in the second quarter. Obviously, the results of European countries, including Italy, are still very weak, penalised by the absence of tourist flows, although the Group is satisfied with the spending attitude of local customers.
The retail channel registered strong results, also driven by the excellent growth of the e-commerce channel.
The results of the wholesale channel were also influenced by the different timing of deliveries among the quarters; as expected, the performance of this channel, when compared with the 2019 figures, reflects the physiological downsizing taking place worldwide. As of 30th June, 2021 the Group’s distribution network was composed by 304 DOS and 96 franchised stores, compared to 292 DOS and 112 franchised stores as of 30th June, 2020.
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“The results of the e-commerce channel were excellent, thanks also to the important investments made in the digital division. I believe that the increase in volumes and the quality of revenues, together with the careful control of overhead costs, will allow us to achieve a gradual improvement in margins. I am more and more convinced that the exclusive positioning of our brands will allow us to increasingly satisfy a clientele of young people, who love great quality and good taste,” commented Diego Della Valle.