Tod’s cuts losses by factor of four in H1
Tod’s is bouncing back thanks to the Chinese market and the e-tail channel. In H1 2021, the Italian luxury footwear group’s sales increased by 55.1% to €398.4 million, bolstered by the strong performances of its labels Tod’s and Roger Vivier. However, the group's revenue is still 10.9% below that of H1 2019, before the pandemic broke out.
The Tod's group, also the owner of Hogan and Fay, managed to recover a degree of profitability between January and June this year, reducing its net loss to €20.7 million as of June 30 2021, compared to one of €80.6 million a year earlier. In H1 2021, the group also generated EBITDA for €64.9 million, compared to the operational loss of €18.7 million it recorded in H1 2020.
EBIT was in the red but only by €2.7 million, as opposed to a €94.1 million loss in the same period last year. The results were chiefly influenced “by an exceptional stock depreciation of €30 million,” according to Tod’s. Widespread increases in raw material and logistics costs also played a part.
“Q2 2021 confirmed that the group's performance is gathering pace, especially in those regions where stores are fully operational. Growth in China has been especially significant, while performance is still weak in regions that have been penalised by lack of tourism. The results of Roger Vivier are highly satisfactory, as is consumer feed-back on the latest collections by Tod’s, both for footwear and leather goods. We are also extremely happy about the positive initial sell-out of the autumn collections currently available in-store,” said CEO Diego Della Valle in a press release.
Without providing figures for the group’s e-tail sales, Della Valle underlined “the excellent results of the e-tail channel, thanks to the significant investment we made in digital technology.” Investments that go hand in hand with the Tod's group new strategy of targeting a younger clientèle, leading to a rejuvenation of its product range and advertising.
In H1 2021, Tod's, the group's leading label, saw sales skyrocket, rising by 50.9% to €188 million (though they were down 17.1% compared to H1 2019). Sales for Roger Vivier increased by 83.6% to €112.7 million, and were up, by 14.2%, even compared to the pre-Covid period in H1 2019.
Geographically, Greater China, the group's main market with a revenue share of 39.2%, recorded the strongest increase (it grew by 110.2% over H1 2020 and by 43.5% over H1 2019), followed by the Americas (up 58.2%), Italy (up 35.5%, now only accounting for 22.3% of total revenue), the rest of the world (up 33.8%) and the rest of Europe (up 22.1%).
The group’s retail sales amounted to €292 million, equivalent to a 57.7% rise, while wholesale channel sales were €106.4 million, a 48.2% growth. As of June 30, the Tod’s group operated 304 directly owned stores and 96 franchised ones, compared to 292 and 112 respectively a year earlier.
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