Nov 12, 2020
Tod's rallies in Q3 but revenue down 33.2% in first nine months of 2020
Nov 12, 2020
In the first nine months of 2020, the Tod's group generated a consolidated revenue of €452.6 million, equivalent to a 33.2% downturn compared to the same period in 2019. In Q3 alone, revenue for the Italian footwear group was €195.7 million, down 12.3% compared to Q3 2019, “a result that marks a significant improvement over the previous two quarters,” said Tod’s.
“China recorded particularly good results, with solid double-digit growth in the third quarter,” said the Tod's group president and CEO, Diego Della Valle, in a press release. “We are convinced that, once the storm will be over, our group will be able to perform positively, thanks to the strength of its brands, the excellent quality of its products, the skills of its management teams and its robust capital structure,” added Della Valle.
Tod’s rallied in Q3, and Della Valle underlined that the upswing was confirmed in October too. “Our winter collections are receiving excellent feedback from local customers all over the world; (…) in the Western world, store results are negatively affected by the absence of tourism and, in recent weeks, they have been further impacted by the new closures imposed to contain the pandemic’s second wave,” said Della Valle. E-tail results were extremely positive for Tod’s in the first nine months of the year, the channel’s performance steadily accelerating and always growing in double figures. “This is a priority channel for us,” said Della Valle, adding that it is one “in which [Tod’s is] continuing to invest heavily; we are expanding the customer base, also thanks to new digital forms of communication. During Q3, on the European market, we started the first test of our omni-channel distribution model.”
Tod’s indicated that, in Q3, retail activity gradually normalised, and at the end of the quarter virtually all Tod's stores were open. As of September 30 2020, 89% of Tod’s stores were regularly open, 9% of them operated on a reduced-hour basis, and only 2% were still closed. At the beginning of Q3, only 78% of stores were open, 16% worked on a limited basis and 6% were closed. The situation is evolving rapidly, according to Tod’s, in the light of the measures adopted by governments as they fight the pandemic’s renewed surge.
According to Della Valle, this unprecedented crisis means the group has little scope to make forecasts for the future. However, “we are managing all activities already looking to 2021, following the indications of our strategic path, with a strong attention to cost control, great prudence in the collection of wholesale orders, with particular emphasis on the digital world and trying to remain flexible and proactive, to face the continuous evolution of the international markets,” said Della Valle.
In the press release, Tod’s underlined that the health of its staff and clients is a priority for the group. It also indicated that the group is focusing a great deal of attention on marketing communications, and on digital ones especially. “Our group has a well-established history and its brands’ reputation with customers is solid; now we must increasingly capture the attention of new consumers, the engine of our sector’s disruptive growth,” said Della Valle, adding that the group is hiring new personnel in this area, and is deploying a “precise and coherent strategy that I hope will bring us the desired results in a short period of time.”
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