MILAN — Continued growth of its Tod's brand and burgeoning business at its Hogan, Fay and Roger Vivier labels in all geographic markets helped boost Tod's SpA revenues by 15.7 percent in the first half.
Despite negative currency fluctuations, the luxury goods group said Monday that sales rose to 316.4 million euros, or $411.3 million at average exchange, compared with the same period in 2006. At constant exchange rate, sales would have grown 17.8 percent.
"Our group achieved excellent sales results in the semester, showing the expected acceleration as compared to the first months of the year," said Diego Della Valle, chairman and chief executive officer of the group, in a statement.
Della Valle said he was "particularly satisfied with the outstanding sales results" of both the group's retail and wholesale networks. The former contributed almost half of the group's revenues, accounting for 47.4 percent of sales, or 149.9 million euros ($194.8 million). Retail sales increased 11.9 percent compared with the same period in 2006.
Wholesale revenues grew 19.4 percent to 166.5 million euros, or $216.4 million. As of June 30, the group had 116 directly operated stores and 68 franchised units.
In the first half, sales of the Tod's brand rose 6 percent to 174.1 million euros, or $226.3 million. At constant exchange rates, Tod's sales would have grown 9 percent. The statement said "the impact from the currencies' fluctuations is higher for Tod's compared to the other brands of the group, given that it's the most international one."
Della Valle reiterated his expectations for Derek Lam, who was appointed Tod's creative director earlier this year. The executive said he viewed "the excellent preliminary sales figures" of Lam's collections for Tod's as "very important for our future results." Della Valle also underscored the relevance of the "Pashmy" bag, launched two seasons ago. The bag has rapidly become popular with celebrities such as Cameron Diaz, Drew Barrymore and Kate Winslet.
While Tod's remains the group's cash cow, Hogan is becoming increasingly significant, accounting for 30 percent of revenues. The brand had sales of 94.8 million euros, or $123.2 million, in the first six months of the year, a 25.7 percent hike compared with last year. Apparel brand Fay grew 30.6 percent, a performance the company attributed to "different timing of deliveries."Sales at the group's newest brand, Roger Vivier, shot up 161 percent, reaching 7.1 million euros, or $9.2 million. Vivier, under the creative direction of Bruno Frisoni, accounted for 2.3 percent of group revenues. The company said in the statement these figures showed "the huge potential of this prestigious and exclusive brand."
Footwear accounted for 66.4 percent of group sales and the category grew 17.7 percent to 210 million euros, or $273 million. Sales of leather goods and accessories grew 5.1 percent, reaching 69 million euros, or $89.7 million. The company said the category continued to be "particularly affected by the strengthening of the euro," with consequences in the American and Japanese markets. Sales of apparel grew 28.1 percent, reaching 36.9 million euros, or $47.9 million.
"Our strong growth testifies to the soundness of our medium long-term strategic business plan," said Della Valle.
Unlike some other luxury goods houses, the group touted a positive performance in Italy. The company said all brands achieved "excellent" results in the domestic market, where sales rose 23.1 percent to 155.2 million euros, or $201.7 million. Revenues grew 12.4 percent in the rest of Europe to 81.4 million euros, or $105.8 million, accounting for 26 percent of revenues.
Sales in the U.S. increased 6.9 percent. That market, which the company said "confirms its strong growth potential," accounted for 10 percent of sales, or 31.5 million euros ($40.9 million).
The Asian market accounted for 15 percent of sales, up 6.2 percent from the same period last year.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)