×
3 586
Fashion Jobs
FRASERS GROUP
Delivery Manager
Permanent · BASINGSTOKE
CROCS
Key Account Manager - Mainstream, Departmental & Value Channel UK
Permanent · LONDON
FRASERS GROUP
Information Security Governance Analyst
Permanent · SHIREBROOK
L'OREAL GROUP
l'Oreal Luxe Multibrand Retail Account Manager
Permanent · London
COTY
National Account Manager
Permanent · London
TK MAXX
Loss Prevention Officer-tk Maxx High Street Kensington-Full Time
Permanent · London
HARRODS
Uniformed Security Officer - Thatcham Distribution Centre
Permanent · THATCHAM
HARRODS
Senior CRM Retention Executive
Permanent · LONDON
JOHN LEWIS
Section Manager Stock And Inventory – Nights
Permanent · BLETCHLEY
SELFRIDGES
HR Administrator (Part-Time)
Permanent · ENDERBY
SELFRIDGES
Digital Personal Shopping Content Manager
Permanent · LONDON
EVERLAST GYMS
General Assistant - Everlast Fitness
Permanent · POOLE
EVERLAST GYMS
General Assistant - Everlast Gyms
Permanent ·
ZARA
Zara High Wycombe - General Manager
Permanent · HIGH WYCOMBE
HEAD OFFICE
Senior Finance Analyst, Commercial Finance
Permanent · BRACKNELL
JOHN LEWIS
Section Manager Stock And Inventory – Nights
Permanent · BLETCHLEY
HOUSE OF FRASER
Loss Prevention Supervisor - House of Fraser
Permanent · READING
EVERLAST GYMS
General Assistant - Everlast Fitness
Permanent · CAMBRIDGE
BERSHKA
New Position - Bershka Operations Manager - Stratford
Permanent · LONDON
AVON
Internal Audit Manager Natura &CO
Permanent · LONDON
COTY
Trade Marketing Manager
Permanent · London
JOHN LEWIS
Section Manager Customer Delivery Hub
Permanent · LONDON
By
Reuters
Published
Aug 4, 2017
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Italy's Tod's ready to make short-term sacrifices for medium-term growth

By
Reuters
Published
Aug 4, 2017

Italian luxury group Tod's said on Thursday it was ready to make short-term sacrifices in margins and revenues in pursuit of medium-term growth as it turns away from fashion to focus on higher-end products.


Tod's sales in the first six months came in at 483 million euros, down 3.2% - Photo: Tod's


The brand, known for its traditional Gommino loafers, has struggled in recent years to broaden its product range and diversify from its best-selling but more classic items.

Chief Financial Officer Emilio Macellari told analysts on Thursday the group did not want to compete with fashion brands but would turn to "a more reliable, regular and stable kind of market, in more iconic and traditional products," closer to the brand's heritage.

These would include high-end bags, shoes and clothing.

Macellari said the change in strategy would provide Tod's with a regular growth trend in the years to come.

"If to do this in the short-term we need (to make)sacrifices... then we will... but we want to collect the results in the medium (term)," Macellari said, after the company posted a 3.2 percent drop in first-half sales.

He added that the goal was to reach "mid-to-high single digit" growth in the mid-term.

Chairman and CEO Diego Della Valle said in a statement he was confident Tod's would register "significant improvement in sales and margins in the future".

Analysts polled by Thomson Reuters expect full-year sales of just over 1 billion euros and a core profit (EBITDA) of just under 180 million euros, in line with last year's results.

Macellari said that the market's expectation for this year's core profit was "reasonable and can be done."

Tod's sales in the first six months came in at 483 million euros, down 3.2 percent at constant exchange rates compared with the same period last year and in line with a Thomson Reuters estimate.

Same-store sales in the period were down 2.7 percent at constant exchange rates, after falling 12 percent in 2016.

Macellari said that, although not he was not happy with same-store sales performance in the second quarter, he could see moderate improvements in growth.

"I cannot say for sure that it will be positive tomorrow, but we see all the positive signals that we would like to see in the market," he said.

Tod's sells under four separate lines: Tod's, Hogan, Fay and Roger Vivier, the latter being the strongest performer in the first half with an 11 percent rise in revenues.

Clothing, which represents just 6 percent of total revenues, grew the most, up 2.7 percent year-on-year, while shoes, 80 percent of total sales, were down 3.7 percent at constant exchange rates.

© Thomson Reuters 2023 All rights reserved.