Sales figures reflect an industry and market environment still characterized by instability and uncertainty
Tod’s sales fell 3.4 percent to 498 million euros for the first half of 2016, according to the company’s second quarter financial statement. Same store sales at constant exchange rates were down 14.3 percent in the first six months of the year.
Sales of the Tod’s brand fell by 7.2 percent in the semester, dragged by a sharp downturn in tourism spending in both Europe and the United States Revenue was down in all markets, with Greater China dropping 9.5 percent.
The leather and accessories category fell the most in the first half of the year, down over 10 percent year-on-year.
Chief Executive Diego Della Valle said the group was pressing on with a development plan and that cost rationalisation was proving successful. Della Valle added the company’s primary goal was to improve organic growth but did not give indication whether it is on track to meet market growth expectations.
“First half 2016 sales figures reflect an industry and market environment still characterized by instability and uncertainty,” said chairman and chief executive officer Diego Della Valle. “Even in this scenario, our plan of development continues: We are investing for growth in the coming years with ever more innovative products and with a very important marketing and communication strategy, on all channels. At the same time, the cost rationalization and containment is proving successful.”
Della Valle said he was overhauling Tod’s to eliminate seasons, and will instead generate new product on a monthly basis to create regular news for the digital media mill and fresh items for stores. The entrepreneur warned that a new order in the fashion system was bound to emerge within the next few years. His company will complete its own transformation by the end of the year.
In May CFO Emilio Macellari said an analyst consensus of 4 percent increase in full-year revenue would be “challenging but not impossible to reach.”