Diego Della Valle, Chairman and CEO of the Group, stated: “As seen in July, half year sales results were affected by the industry environment and the volatile and uncertain markets. The negative impact on margins of the organic growth of the stores was partially offset by cost containment and rationalization plan in place, plan that will continue to yield results in the coming months”.

Consolidated sales for the first half of 2016 totaled 497.6 million euros, down by 3.4% from the first half of 2015. At constant exchange rates, sales would have reached 493.2 million euros, down by 4.3% from similar period last year.

Revenue for the Tod's brand amounted to 282.5 million euros in the first half of 2016; the decrease in sales compared to last year, despite the difficult comparison basis, was mainly due to the sharp fall in purchases by tourists in Europe and the US, and to the persistent weakness of the Greater China market.

Hogan sales totaled 106.1 million euros, down by 2.5% from similar period last year, mainly due to the slowdown in consumption registered in the second quarter in the Italian market. Revenue for the Fay brand reached 24.9 million euros, up by 8.8% from the first half of the year in 2015. Roger Vivier registered 83.4 million euros in sales, up by 6.2% from similar period last year.

By product category, revenue from footwear sales reached 400.3 million euros, down by 2.5%, also due to the very challenging comparison basis, linked to the different timing of deliveries. Sales of leather goods and accessories totaled 69.3 million euros. The figure for the first half reflects the negative trend of a part of the Tod’s collection. Sales of apparel reached 27.3 million euros, up by 3.7% from similar period last year.

In the first half of 2016, domestic sales totaled 148.8 million euros, a 2.7% decrease from last year, mainly caused by the Hogan brand.

In the rest of Europe, the group’s revenue totaled 120.1 million euros, down by 1.7%, mainly due to the sharp slowdown in consumption, especially of tourists, registered in the second quarter for the entire sector, in addition to a very challenging comparison basis (+22% in Q2 2015). In line with the industry, the weakest countries were France and UK, which are the ones with the higher exposure to tourist flows.

Sales totaled 48.7 million euros in the Americas (-6.0%) and 107 million euros in Greater China (-9.5%).

As a result of such poor results, Tod’s SpA announced it will focusing its future strategy on high-quality products, footwear, handbags and small leather goods, betting on the products that most contributed to the brand’s recognition and allying it to a strong sense of innovation. A strong communication strategy and the development of the store network are also forecasted.