Tod’s said on Monday sales for the first nine months of the year fell an unexpected 4.7%, adding the company still foresees a positive end to 2017. Hong Kong remains a timid growth market, the company said, with China posting solid growth.
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The Italian luxury group said nine-month revenues fell to 722.2 million euros ($838 million) or 4.2 percent at constant exchange rates, hurt by its wholesale channel and a smeared footwear sales result.
Tod’s, the maker of the iconic Gomino loafer, reported total comparable sales declined 2.7 percent for the January to end of September period across its stores.
Sales of leather goods and accessories fell 3.8 percent to 99.8 million euros, while fashion dipped 3.2 percent to 47.9 million euros, said group, which operates Tod’s, Roger Vivier, Hogan, and Fay’s.
In Asia, Greater China sales were up 1.4 percent to 155.1 million euros, with mainland China posting positive results. The company flagged Hong Kong as a tough market still, with only small improvements in recent few months. Japan recorded positive results while South Korea still negative, it said.
The Tod’s group said it now boasts 272 directly operated stores and 114 franchised stores, compared to 266 directly operated stores and 103 franchised stores at the end of September last year.
The group also said that it would replace current Chief Executive Stefano Sincini with a former Bulgari manager, Umberto Macchi di Cellere, starting from 1 December 2017.