MILAN — Tod’s SpA on Thursday reported flat preliminary full-year sales following lower revenue at the flagship Tod’s brand and at Hogan, and the negative impact of currency fluctuations.
In a statement released after the close of trading in Milan, where Tod’s is listed, the group said that total turnover in 2014 was 965.6 million euros, or $1.28 billion, in line with 2013.
The company said that sales increased 4.5 percent in the fourth quarter, “showing a sharp improvement as compared to the previous quarterly figures.”
Dollar amounts have been converted at average exchange for the periods to which they refer.
Commenting on the results, Diego Della Valle, Tod’s chairman and chief executive officer, said the company’s performance was “in line with our expectations,” with all the brands achieving “visible improvement of their results in the second half of the year.” Looking ahead, Della Valle said: “Considering the positive feedback of spring/summer collections now in stores, despite the low visibility and uncertainty of some markets, we are confident that our group will register positive results this year.”
Of all the group’s brands, only Roger Vivier grew last year, with sales up over 12 percent on 2013, at constant exchange rates, reaching 126.9 million euros, or $168.8 million.
Sales at the Tod’s brand — which represents some 60 percent of total group turnover — were one percent lower, at constant exchange rates, at 568 million euros, or $755 million.
At Hogan, the groups’ second-largest unit in terms of revenues, sales were down 2.1 percent, at constant exchange, at 212.4 million euros, or $282.5 million, while at Fay sales were flat at 57.3 million euros, or $76.2 million.
Tod’s said that “as expected, the brand performance was positive in the second half of the year, also to the end of the rationalization of the Italian wholesale distribution.” In October, Fay embarked on its internationalization, opening its first foreign monobrand store, under franchise, in South Korea.
In terms of product categories, shoes continue to make up the bulk — almost 80 percent — of Tod’s revenues and saw sales expand slightly to 743.6 million euros, or $989 million. The leather goods and accessories and apparel categories both saw revenues decline in the full year.
Looking at markets, the group reported weakness in Italy, its largest single market (nearly 30 percent of total revenues), with sales down almost four percent, but European revenues increased by over six percent. Sales in China were down 4.4 percent last year as Tod’s revenues declined in every quarter following weak consumer demand and, in the last three months in particular, antigovernment demonstrations in Hong Kong, which started in September.
In the Americas, revenues contracted 1.8 percent as bad weather at the beginning of the year and the temporary closing and refurbishing of two important boutiques — including the Madison Avenue flagship in Manhattan — impacted performance.
In the “rest of the world”, which includes Korea, Japan and Singapore, revenues were up 13.6 percent, to 120.1 million euros, or $159.7 million.
The company said sales at directly operated stores (DOS) — which represent about two-thirds of total revenues — came in at 616 million euros, or $819 million, “broadly aligned” with the previous year. Same-store sales in the period were 7.1 percent lower but showed “visible improvement in the last months, despite the already commented negative impact of the recent Hong Kong events.”
The 2014 results will be approved at the board of director’s meeting on March 12.