MILAN — The Tod’s Group’s sales momentum continued in the first half as all its brands recorded double-digit growth, according to preliminary results released Wednesday.
The Italian luxury group saw revenues rise 21.7 percent to 569.1 million euros in the six months ended June 30, lifted by the performance of the Asian market and the return of tourists to Europe. The group said impact of currencies was negative by 5 million euros.
“Considering the solidity of growth, the favorable mix of revenues and the focus on controlling costs and improving operational efficiency, we are confident on the profitability of the semester and on the results for the full year, despite the uncertainty and volatility of the macro-economic context at an international level,” said chairman and chief executive officer Diego Della Valle, adding the Asian markets made a major contribution to the growth in revenues, while the company was “equally satisfied” with the results recorded in the domestic market and in the rest of Europe, driven by local demand and tourism spend.
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In May, upon the release of its first-quarter results, the company touted the strength of local demand and the important contribution of tourist purchases, especially from American, intra-European and Middle Eastern clients in Italy and Europe, where tourists accounted for around 40 percent of sales.
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The Tod’s Group controls the Tod’s, Roger Vivier, Hogan and Fay brands.
Roger Vivier and Tod’s, which have the greatest presence abroad, outpaced the group gains, rising 28.4 percent to 152.5 million euros and 21.3 percent to 283.3 million euros respectively. Sales generated by Fay rose 19.8 percent to 23.5 million euros and Hogan rose 14.3 percent to 108.5 million euros.
By category, sales of shoes rose 18.9 percent to 439.3 million euros.
Sales of leather goods and accessories climbed 32.9 percent to 95.4 million euros. Apparel was up 28.7 percent to 33.1 million euros.
By geography, sales in Italy rose 12.2 percent to 122.9 million euros and revenues in Europe climbed 14 percent to 116.7 million euros. Sales in America, however, slipped 1.8 percent to 37.2 million euros. In May, the company cited a notable shift abroad of a large part of the purchases of American clients.
“We consider the U.S. a market of high importance and it is under-penetrated,” said chief financial officer Emilio Macellari during a call with analysts, noting that the goal is to further develop that market.
The decline in the U.S. was offset by booming sales in Greater China, which were up 43.2 percent to 194.4 million euros, as the lifting of COVID-19 restrictions continues to have an effect.
In the first half, the retail channel was up 23.6 percent to 430.8 million euros. As of June 30, the group’s distribution network comprised 336 directly operated stores and 93 franchised units, compared to 318 DOS and 85 franchised stores at the end of June last year.
Third-party sales grew 16.2 percent to 138.3 million euros.
Earlier this month, sources told WWD that Walter Chiapponi will exit his role as creative director of Tod’s in September after the brand’s womenswear spring 2024 show, which the company later confirmed.
The group said it will release final first-half results on Sept. 6.