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MILAN — Hurt by the rationalization of its wholesale accounts in Italy, offset by double-digit growth in Greater China and the Americas and a strong performance of the Roger Vivier brand, revenues at Tod’s SpA edged up 0.5 percent to 967.5 million euros, or $1.27 billion, in the year ended Dec. 31, compared with 2012. The Italian luxury firm was hurt by currency headwinds, as sales would have grown 1.7 percent in the year at constant exchange.
This story first appeared in the January 30, 2014 issue of WWD. Subscribe Today.
“As expected, full-year sales results confirmed the same trends of the previous quarters: very strong results abroad, mainly achieved by the Tod’s and Roger Vivier brands, partially offset by the impact of the rationalization strategy implemented on the Italian wholesale distribution,” said chairman and chief executive officer Diego Della Valle, whose group controls the Tod’s, Hogan, Fay and Roger Vivier labels. “Even though the economic situation is still challenging, we continue to develop our brands by increasing the investments to strengthen the distribution network, the human resources and the production capacity, such as the new factory for high-quality accessories that we are currently building in Italy. ”
In the year, sales at the core Tod’s brand rose 1.5 percent to 578.1 million euros, or $763 million. Hogan showed a 10.8 percent decrease to 217 million euros, or $286.4 million, which stemmed from a cutback in local distribution, while the company underscored its “brilliant results in China.”
Also dented by its high exposure to the domestic market and to the wholesale channel, Fay sales dropped 22.6 percent to 57.6 million euros, or $76 million.
Roger Vivier continued to grow, totaling sales of 113.7 million euros, or $150 million, a 52.5 percent increase from the previous year.
Dollar amounts are converted at average exchange for the periods to which they refer.
Shoes remained the group’s core business, totaling sales of 739.7 million euros, or $976.4 million, up 4.1 percent compared with the previous year. Leather goods and accessories were down 2.8 percent to 160.9 million euros, or $212.3 million.
Sales of apparel dropped 23.6 percent to 65.8 million euros, or $86.8 million, reflecting the performance of the Fay brand.
Sales in Italy declined 15.9 percent to 323 million euros, or $426.3 million, penalized by the group’s new distribution strategy. In the rest of Europe, revenues were up 3.8 percent to 207.8 million euros, or $274.3 million, showing particularly strong results in the U.K. and France.
The Americas continued to grow, registering sales of 90.3 million euros, or $119.2 million, up 10.5 percent.
Despite a slowdown at directly operated stores over the past few months, sales in Greater China rose 21.3 percent to 237.5 million euros, or $313.5 million, accounting for 24.5 percent of sales.
The Rest of the World area showed a 7.4 percent rise in sales to 108.9 million euros, or $143.7 million. At constant exchange, sales in the region would have grown 16.1 percent, due to the significant weakening of the Japanese yen.
Sales through directly operated stores grew 7.6 percent to 617.7 million euros, or $815.3 million, representing 63.8 percent of consolidated sales.
Full 2013 financial results will be released on March 11.