MILAN — Global growth in its retail and wholesale channels, combined with an acceleration in the last quarter of the year, lifted Tod’s SpA revenues in 2015.
This story first appeared in the January 22, 2016 issue of WWD. Subscribe Today.
The Italian luxury firm disclosed preliminary sales figures on Thursday, showing a 7.4 percent rise to 1.03 billion euros, or $1.14 billion, in the 12 months ended Dec. 31, compared with 965.5 million euros, or $1.28 billion, in the previous year. At constant exchange rates, revenues gained 1.8 percent.
Dollar figures were converted from the euro at average exchange for the periods to which they refer.
“The results released today are very good, especially considering the environment in which they were achieved. We are happy with the positive results registered by all our brands in all geographic areas, with the only exception of Hong Kong,” said Diego Della Valle, chairman and chief executive officer of the group. “As for the current year, we are confident on the strength of our collections, which are expressing better and better the brands’ DNA, their quality and innovation. We are paying increasing attention to digital marketing and e-commerce.”
In the last quarter, revenues rose 11.4 percent to 250.1 million euros, or $277.6 million.
The core Tod’s brand was up 5.5 percent to 599 million euros, or $665 million. The label posted positive results in all regions, with the only exception being Greater China, which was slightly negative. All product categories grew and the company noted an “excellent reception” to its new collections of handbags.
Hogan grew 4.2 percent to 221.4 million euros, or $245.7 million.
Fay was up 3.7 percent to 59.4 million euros, or $66 million, accelerating in the last quarter, when it was up 20 percent.
Roger Vivier rose 22.9 percent to 156 million euros, or $173.1 million.
Della Valle described the acquisition of the Roger Vivier brand, which was approved earlier this month, as “a very good operation” for the group, allowing it “to think of a medium-term strategy, which will bring us great results.”
The group’s core footwear category rose 9.2 percent to 811.7 million euros, or $901 million, in the year. “We are very happy with shoes for the three brands,” said the company’s head of investor relations, Cinzia Oglio, of Tod’s, Hogan and Roger Vivier during a conference call with analysts. The latter’s new sneakers, retailing at 1,000 euros, or $1,110, are “performing very well,” she said.
Leather goods and accessories gained 1.1 percent to 157.2 million euros, or $174.5 million. Oglio said Tod’s new family of handbags, the Wave and the Double T, was starting to show “very good results.”
Apparel gained 2.3 percent to 66.9 million euros, or $74.2 million, broadly reflecting the performance of the Fay brand.
Sales in Italy were up 3.7 percent to 322.8 million euros, or $358.3 million, growing in both distribution channels. Oglio said this “most important market has been recovering from two years ago.” In the rest of Europe, sales climbed 12.3 percent to 248.6 million euros, $276 million, mainly driven by France, Germany and the U.K.
The group’s sales in the Americas gained 21 percent to 105.6 million euros, or $117.2 million. Oglio said the region shows much potential as it is still “underdeveloped.”
Sales in Greater China were in line with the previous year, standing at 225.8 million euros, or $250.6 million. Oglio observed that the company was “beginning to see tentative signs of improvement in Mainland China, which is not deteriorating further; this positive trend is not yet visible in Hong Kong. We see single-digit growth in China for the full year.” Responding to a question from an analyst, Oglio said the company is “not focused only on China. We are consolidating Europe, the U.S., the rest of the world.”
Sales in the Rest of the World increased 11.8 percent to 134.2 million euros, or $149 million, driven by “outstanding” results of Japan and Korea.
Revenues through directly operated stores rose 6.9 percent to 658.4 million euros, or $731 million, representing 63.5 percent of the total.
The Same Store Sales Growth rate, calculated as the worldwide average of sales-growth rates at constant exchange, was down 6 percent during the year. After a good performance in October, November was impacted by the terrorist attacks in Paris, but Oglio remarked on a normalization of the situation in the last weeks of the year.
Revenues to third parties totaled 378.6 million euros, or $420.2 million, up 8.3 percent compared with the previous year. In the last quarter, wholesale was “really strong,” said Oglio, mainly related to the company’s expansion of this channel in the U.S. and the Far East with the Tod’s and Roger Vivier brands.
Oglio concluded by saying “it was possible to come back to [the company’s] historical peak,” leveraging “a lean structure and good distribution network,” boosting sales of its leather goods, “the real driver of profitability. To sell one extra bag per store is feasible.”
Full-year results will be released on March 14.