MILAN — Tod’s SpA net profits decreased 17.7 percent to 71 million euros in the 12 months ended Dec. 31, compared with 86.3 million euros in the previous year.
Confirming preliminary figures first reported in January, revenues decreased 4.1 percent to 963.3 million euros in the 12 months ended Dec. 31, compared with one billion euros the previous year, but Tod’s said it registered an uptick in the last quarter of 2017. At constant exchange rates, sales were down 3.1 percent.
The company is home to the Tod’s, Hogan, Fay and Roger Vivier brands.
Chairman and chief executive officer Diego Della Valle said 2017 results were in line with expectations. “We are all focused on implementing the strategic and industrial plan presented during the November Investor Day, which we hope will give results in the near future. Very good is the feedback gathered by all the brands during the presentation of the collections of the next autumn; particularly appreciated is the strong creative evolution in interpreting the iconic products of the group. Each brand is following its own strategy, focusing on all future development and the investments necessary to achieve the planned results.”
Della Valle also emphasized the new business model the group has set in motion to present more than two collections per year and to prepare capsule collections and limited-editions. “The e-commerce sales channel, top priority of our investment strategy, is giving excellent results, growing at double-digit figures. The DOS development model follows the changes taking place in the group, creating both special flagship stores, made by different artists and architects, and pop-up stores, which are brought around the world to increase brand awareness and sales.