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Tod’s 2022 sales resilient on dip in Greater China

Italian luxury company Tod’s Group announced on March 13 consolidated sales for the year 2022 were up 14 percent to EUR 1.007 billion on 2021, and up 10 percent compared to pre-pandemic levels in 2019.

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In 2022, Tod’s Greater China market, the company’s largest by sales volumes, fell 8.4 percent to EUR 287.2 million. The owner of Tod’s and Roger Vivier brands said that after a good start to the year, the China market suffered a “significant slowdown in growth” in March, due to the strict government restrictions taken to combat the Covid-19 pandemic. Even after the progressive easing of these measures, in the second half of the year, the trend of consumer demand remained volatile and impacted by local and temporary lockdowns in various primary cities, the company added.

Elsewhere, the company’s Rest of the World market soared 43.3 percent to EUR 169.3 million, on the back of strong gains in its South Korea and Japan markets, the group added.

By brand, the Tod’s brand, the company’s largest by sales volumes, recorded growth of 19.1 percent across all geographical areas, “confirming the strong appreciation by customers for the brand’s collections, both in shoes and in the new families of leather goods and accessories.”

The Roger Vivier brand grew 7 percent after a good start to the year in all geographical areas, “but, given its high exposure to the Chinese market, its growth slowed down starting in March,” said the company.

Solid double-digit increases were seen at Tod’s smaller brands Hogan and Fay, also thanks to the easy basis of comparison, due to their high exposure to the Italian and European markets, which, in 2021, had experienced some periods of store closures due to Covid-19.

“The group’s revenues exceeded one billion euros, with a growth of around 14 percent compared to 2021 and with operating results materially improved versus the previous year,” said Diego Della Valle, chairman and CEO of Tod’s Group.

“Good growth of all brands in all categories and in all regions, excluding China due to issues related to Covid. Without overlooking both appropriate cost control and efficiency improvement, our main goal remains the asset value maximization related to each brand, together with the profitability of the group.”

Looking ahead, Diego said his company remains “focused on enhancing organic growth in our stores and developing our omni-channel strategy, while continuing to invest in the digital world.”