“The results of the quarter are substantially in line with our expectations. We continue to remain focused on the execution of our medium-term strategic plan (...) We consider our distribution network to be excellent, with stores in all the major luxury streets of the world and from this network we expect a good like-for-like growth for the future. As far as e-commerce, we are satisfied with its rapid growth and its excellent future prospects. Given the highly competitive context and considering our medium-term goals, we believe it is important to accelerate the investments necessary to support our top line growth. Assuming no further turbulence from the markets, we believe that we will soon be able to obtain the expected results”, commented Chairman and CEO Diego Della Valle.

In the first nine months of 2019, consolidated sales totalled 677.7 million euros, down by 4% from similar period of 2018. In the current year, currency fluctuations gave a positive contribution, particularly to the Tod’s and Roger Vivier brands, which have the greatest presence abroad. At constant exchange rates (using the average exchange rates of the first nine months of 2018) sales would have been 670.4 million Euros

Sales of the Tod's brand reached 344.3 million euros in the first nine months of  2019, with positive results in the retail channel and good feedback from customers on the new families of product. Hogan sales amounted to 150.3 million euros with double-digit growth in Greater China, despite the delicate situation in Hong Kong. Revenues of Roger Vivier totaled 144 million euros, up by 13% from the first nine months of 2018. All the regions posted positive results, with the only exception of the US. Finally, sales of the Fay segment amounted to 38.5 million euros, a decrease, as compared to 2018, mainly  due  to the weakness of the Italian market, especially in the wholesale channel.

Revenues from shoes amounted to 543.2 million euros in the first nine months of 2019, registering an improvement. Sales from leather goods and accessories totalled 91.5 million euros and sales from apparel amounted to 42.4 million euros (broadly reflecting the performance by the Fay brand).

Sales by Geography

In the first nine months of 2019, domestic sales amounted to 195.3 million euros; the decrease, compared to the same period of 2018, is entirely due to the weakness of the wholesale channel, while the results in the retail channel are positive. In the rest of Europe, the group’s revenue totalled 176.3 million euros; also in this region, the results are very different in the two distribution channels, similarly to what was commented for the domestic market. In the Americas sales amounted to 49.9 million euros; the retail channel registered positive results

The group’s sales in Greater China totalled 156.4 million euros, up by 2.6% from the performance in the first nine months in 2018. The acceleration of growth in Mainland China, which represents more than 60% of this region, more than offset the sharp slowdown recorded in the Hong Kong market, due to the well-known political tensions. Finally, in the area Rest of the World the group’s revenue were 99.8 million euros, up by 1.2% from 2018. The strong acceleration of the third quarter is largely linked to Japan, where the entire luxury sector benefited from an anticipation of purchases in September, before the VAT increase occurred at the beginning of October.

Sales by Channel

In the first nine months of 2019, the group's retail revenue totalled 466.5 million euros and represent almost 70% of the group’s turnover. During the third quarter of 2019 this channel grew by 8%, driven by the sound double-digit growth of e-commerce.  The contribution of the new openings is also positive.

As of the 30^th of September 2019, the group’s distribution network was composed by 290 DOS and 111franchised stores, compared to 279 DOS and 118 franchised stores as of the 30th of September 2018. Revenues to third parties totalled 211.2 million euros; net of the impact of the acquisition of Italiantouch and the conversion into DOS of the Australian franchised stores, this channel registered a double-digit decline, mainly due to the weakness of the domestic and European markets.