MILAN — Tod’s SpA reported a 1.7 percent decrease in net profits to 46.3 million euros last year, compared with earnings, net of minority interests, of 47.1 million euros in 2018.
In the 12 months ended Dec. 31, revenues totaled 916 million euros, down 2.6 percent compared with 940.5 million euros in the previous year.
In the fourth quarter, sales were up 1.7 percent to 238.3 million euros, compared with the same period in 2018.
“In 2019, we continued the execution of our medium-term strategic plan, trying to get closer to the set objectives as quickly as possible. The last months of the year gave us positive signals, and even better results were being achieved in the first weeks of this year, until the arrival of the coronavirus,” said chairman and chief executive officer Diego Della Valle. “This confirms that all the initiatives undertaken were going in the right direction, also considering the desirability that makes our products special and therefore competitive with the collections of other famous brands of worldwide importance.”
Della Valle cited the group’s investments into its retail network and in research and development, with the goal to increase traffic in stores and increasingly control direct distribution, which today represents more than 70 percent of sales. “E-commerce is growing very well and we will increasingly invest in this sales channel to accelerate its growth. When our stores and e-commerce are fully operational, the turnover, but even more, the Group’s profits will grow more than proportionally. This is the medium-term strategy, but we come to today. The arrival of coronavirus has forced us to review the strategy of the first half of 2020 and now, in a climate of strong uncertainty, we have prepared a plan that allows us to cut immediate costs and manage the flow of goods with great prudence, trying to dose at best the quantities of goods that we will put on the market. However, we are ready to start quickly as soon as the market normalizes. I believe that before the end of April it will not be possible to perceive how the semester will look. But now our first goal is to take care of the health of our employees, helping them for all the problems that coronavirus can create, even indirectly, in managing the daily life of each family. Notoriously our Group has always been close to its employees and this time it will be even more.”
The Tod’s group controls the Tod’s, Hogan, Fay and Roger Vivier brands.