Tod' S Sales Fell 4.3% In The First Quarter, Declining In 12 Consecutive Quarters.

The Italy luxury group Tod's is still in a weak state in the environment of the continued cold of luxury shoe brand brands, but its pition strategy seems to be working.

According to Tod's's first quarter results, sales fell by 4.3% to 216 million 400 thousand euros over the same period last year, slightly lower than the average forecast of 221 million euros in Reuters survey, but improved compared with a 5% decline in the same period last year.

During the period, the group's core brand Tod's sales fell 11% to 106 million 400 thousand euros, according to the exchange rate has declined for 12 consecutive quarters.

By category:

Tod's group footwear sales fell by 3.8% to 175 million euros, down 5% to 173 million euros on fixed exchange rates.

Sales of leather goods and accessories Department fell 6.9% to 27 million 600 thousand euros, reducing 9.7% to 26 million 700 thousand euros at fixed exchange rates.

Sales in the clothing sector decreased by 4.9% to 13 million 400 thousand euros, and fell 5.1% to 13 million 400 thousand euros at fixed exchange rates.

By Region:

Tod's group's sales in Italy, the local market, fell 9.4% to 63 million 600 thousand euros.

Sales in Europe except Italy declined by 4.8% to 54 million 800 thousand euros.

Sales in the Americas fell 1.9% to 15 million 100 thousand euros compared with the same period last year.

The Greater China region has become the only record growth market, with sales rising 3.1% to 50 million 200 thousand euros over the same period, of which the mainland China has become the fastest growing market in the Greater China region due to its low base.

Sales in other parts of the world dropped by 4.6% to 32 million 700 thousand euros.

It is noteworthy that Roger Vivier, which was once suspected of losing its past glory, recorded a rise in sales, and sales rose 16.2% to 43 million 900 thousand euros, becoming the only brand to record growth, ending four consecutive quarters of revenue decline.

In addition, due to the weakness of the domestic market, sales of brand Fay fell 6.4% to 12 million euros, while Hogan sales fell 3.1% to 54 million euros.

Revenue from retail outlets including direct outlets and online sales increased by 9.2% to 139 million euros, but the wholesale channel sales fell 21.7% to 77 million 600 thousand euros in the same period.

Up to now, Tod's has 283 Direct stores and 118 franchised stores.

Tod's said the decline in group performance was entirely affected by the weakness of wholesale channels.

Emilio Macellari, group chief financial officer, points out that this phenomenon is partly due to Tod's group's pfer of its e-business platform Italiantouch performance from wholesale income to retail income, while the increase in demand for luxury goods by Chinese consumers has contributed to an increase of 9% in the sales volume of the platform.

Tod's pointed out in its earnings report that the growth in sales of its own e-commerce platform proved that its focus on digital strategy and joint collaboration with designers began to work. Therefore, Tod's group will invest more resources in marketing and retail in the future, and increase operating costs, but it may not be able to achieve the goal of 3% revenue growth in 2019 by the continuous impact of the global geopolitical economy.

However, Umberto Macchi di Cellere, chief executive of Tod's brand, predicts that the capsule series that Tod's will launch this summer in collaboration with Israeli designer Alber Elbaz will help stimulate new sales growth.

In order to satisfy consumers' pursuit of novelty, Tod's launched the "Tod's Factory" project at the end of 2017. It aims to cooperate with different designers to get rid of the new cycle of traditional four times a year, and present the latest products to consumers in monthly or two months to meet the fast changing tastes of consumers. The latest designer of the project is Alber Elbaz.

Umberto Macchi di Cellere also stressed that the No_Code project implemented by Tod's group was very successful and was one of the main factors to improve the group's performance.

No_Code monthly new project is launched by Tod's Group CEO Diego Della Valle. Since the departure of Tod's creative director Alessandra Facchinetti in May 2016, the position has been vacant. Diego Della Valle has decided to give creative work to the brand team.

He has said that consumers are becoming more and more popular, and brands no longer need the traditional sense of "creative director".

Tod's group has failed to meet market expectations in recent years, and has been trying to revive its brand. At present, the pformation plan has achieved initial success.

In 2018, Gherardo Felloni, the new creative director of Roger Vivier, reversed the declining trend of the brand performance in a single stroke. The financial report pointed out that the growth of Roger Vivier sales has been highly recognized by the Gherardo Felloni design series worldwide.

Gherardo Felloni worked in DIOR, John Galliano and Raf Simons respectively. In 2014, she returned to Miu Miu as the design director of footwear, leather goods and jewelry.

After taking office, Gherardo Felloni said it would add more modernity to the brand on the basis of respecting the classics and traditions created by Roger Vivier.

He revealed that joining Roger Vivier was a dream after his entry into the industry. Roger Vivier had a profound influence on the French footwear industry from 40 to 50s.

Last October, Roger Vivier announced that China's female star Tang Yan was the spokesperson of the brand China. He also provided Tang Yan's wedding shoes with the latest product advertisements.

And from 2018 onwards, Tod's group began to greatly adjust the management structure, Tod's group's former chief executive officer Stefano Sincini, Tod 's Brand General Manager Claudio Castiglioni, Roger Vivier creative director Bruno Bruno has left.

In February this year, Gucci parent company Carlo Alberto Beretta, the former chief marketing officer of Kai Yun group, joined Tod's group as its brand general manager.

Thanks to the attention of Tod's group, Hogan is gaining market share under the impetus of the Chinese market.

At the end of 2017, the brand updated its Chinese name of WeChat public number to Haug and joined Tmall in opening flagship store with Tod's. WeChat also opened WeChat small program store this year, aiming to find new growth opportunities in China.

In addition, Tod's is about to open a new flagship store in Napoleon street, Milan. The flagship store will pform the store into a direct consumer oriented service tool through full channel and e-commerce technology.

Diego Della Valle said that the ultimate goal of Tod's group is to maintain a consistently high quality product while attracting more young consumers with a steady stream of creativity. At the same time, it will further break the barriers of online and offline channels and pform to the whole channel.

To this end, the group is constantly increasing investment in marketing and digital teams, so as to better grasp the new growth opportunities of luxury brands in the era of digital business.

In terms of supply chain, Tod's group's production base has always been in the forefront of the industry in terms of quality and flexibility, and can ensure efficient production of series products to effectively meet the new needs of global consumers.

Also in the throes of pition, Italy luxury Footwear Group Salvatore Ferragamo, according to data, ended in the 2018 fiscal year ended December 31st, its sales fell 3.3% to 1 billion 340 million euros, net profit fell 21.2% to 90 million euros, and operating profit fell 19.5% to 150 million euros.

Micaela Le Divelec Lemmi, CEO of Salvatore Ferragamo, who has worked as an executive at Gucci, said that with the beginning of the new stage, the idea of Paul Andrew being responsible for creativity is conducive to better pformation and upgrading of brands.

Tod's said in its earnings report that the board has approved the incorporation of Holpaf BV, a wholly owned subsidiary, into the Tod's group's plan. The company owns the Tokyo table Shen road building, which is the office of the Japanese flagship store and branch of Tod's. Tod's expects to get 156 million euros from the paction, with a total revenue of about 100 million euros.

The Tod's group fell 0.66% to 42.36 euros per share last Friday after its earnings announcement, with a market value of about 1 billion 402 million euros.

Author: Yohanna