Companies

Tod's results driven by e-commerce, Greater China and Roger Vivier

Sep 9, 2021 Italy

The Italy-based luxury house talks about strong sales results and profitability recovery in the first half of 2021. Results were driven by the performance of the e-commerce channel, Greater China and the Roger Vivier brand

“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 penalized by the absence of tourists are still weak. Roger Vivier registered solid results and consumer feedback on the Tod's 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. 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, Chairman and CEO of the Group.

Overview of Results

In the first half of 2021, consolidated sales totaled 398.4 million euros, up by 55.1% from the first semester of 2020. Currency fluctuations gave a negative contribution, mainly to Tod’s and Roger Vivier, which have the greatest presence abroad; at constant exchange rates.

The pandemic affected the sales results of all the group's brands, in all geographic areas, product categories and on both distribution channels.

The revenue trend of each brand reflects its different geographical mix and its distribution structure; consequently, the Roger Vivier brand, which has the highest exposure to the Asian market, was the best performer in the period.

Good results were recorded both in the core business of shoes and in the leather goods and accessories segments.

In the first half of 2021, the average opening rate of the store network was 85%, as a world average. This percentage of operations drops to 76%, if referring to Italy, and even to 61%, if referring to the rest of Europe. Revenues in Greater China recorded a growth of 43,5% 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, penalized by the absence of tourist flows.

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; the performance of this channel, when compared with the 2019 figures, reflects the physiological downsizing taking place worldwide.

As of the 30^th of June 2021 the group’s distribution network was composed by 304 DOS and 96 franchised stores, compared to 292 DOS and 112 franchised stores on the 30^th of June 2020.

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