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Affected by the lockdown in its main markets, the Italian luxury shoemaker Tod’s saw its sales fall by 29.4% in the first quarter of 2020. After some signs of recovery in China, the fashion group remains very cautious for the second half of the year.
With the closure of its stores in China, Europe and then the United States and the halt in tourist flows worldwide, the Italian group Tod’s, like the fashion and luxury goods market in general, has been greatly affected by the coronavirus pandemic.
Yesterday, Wednesday, May 13, the group announced in an official statement that sales for the first quarter (the three months ending March 31) had fallen by 29.4% to 152.8 million euros – $165.60 million – at current exchange rates compared to the same quarter of the previous year, compared with an analyst estimate of around 162 million euros, according to a survey by the Reuters press agency.
The holding company Tod’s SpA reported that it recorded a decline in sales of all its brands – Tod’s, Roger Vivier, Hogan and Fay – across all geographical areas, for all product categories and in all distribution channels.
The epidemic crisis has therefore struck down the group, while its sales were recording strong growth at the beginning of the year in all regions of the world, according to the Chairman Diego Della Valle.
The group, specialised in luxury moccasins, was indeed just beginning to recover after four consecutive years of decline: in 2019, sales had continued to fall slightly, marking a fourth consecutive annual decline. The recovery in the last quarter of 2019 was at that time a sign that the strategy of relaunching the group’s brands was finally paying off.
In response to the crisis, the fashion group said it remains “very cautious” for the second quarter and the rest of the year and will pay particular attention to reducing costs, limiting stocks (to avoid unsold items) and increasing efficiency, which should lead to “good results” in the future, according to CEO Diego Della Valle.
Tod’s has also announced that it is preparing a new design, marketing and communication plan and will focus on its new Creative Director, Walter Chiapponi.
Finally, Financial Director Emilio Macellari concluded by saying that, although the urgency of the health crisis had complicated management’s efforts to increase sales, the group had never stopped supporting all its employees in each country, paying salaries even to those who were not working : “In the U.S. or where others fired or furloughed, when stores are closed, we continue to pay salaries globally. It may not be wise in economics but solidarity, assistance are principles, to support those that have been with us for the good and bad moments.”
As Tod’s slowly and gradually restarts its activities worldwide, its CEO remains optimistic: “We hope in the coming months to have better visibility and more realistic goals, hoping that we can start again, although progressively, to see a clearer future“.
Read also > Tod’s announces suspension of dividend payments
Featured Photo : © Tod’s / Facebook[/vc_column_text][/vc_column][/vc_row]
