Tod's hurt by Europe in 2018, international sales rally

By

Benjamin Fitzgerald

Published
Jan 24, 2019

Italian fashion group Tod’s said like-for-like sales for 2018 fell 3 percent due to a worsening of the performance in Italy and the rest of Europe in the fourth quarter.

The company, known for its leather goods and Gommino loafers, said sales came in at 940.4 million euros ($1.1 billion), slightly below a Refinitiv analyst consensus of 948 million euros.

At reported rated sales were down 2.4 percent while at constant exchange rates they fell 0.5 percent. 

At the namesake Tod’s brand, sales totaled 509.5 million euros.

"Good results were achieved in the Americas and in Asia, while Europe was affected by lower purchases of tourists and political and economic uncertainties in Italy," said the company, in a press release.

Hogan revenues were 207.5 million euros, up 1.8% from the previous year, hurt by the weakness of the Italian market, and offset by a solid double-digit growth recorded internationally.

Sales of Roger Vivier totaled 179 million euros at constant rates, remaining unchanged on 2017.

"Revenues registered a visible improvement, with the arrival in stores of the new products designed by Gherardo Felloni, which are getting excellent feedback," cooed Tod's group.

Finally, sales of Fay were 61.3 million euros, a 3.4% decrease, mainly due to the weakness of the domestic market.

By category, revenues from shoes were 758 million euros, in line with the figure registered last year. Sales of leather goods and accessories totaled 131.8 million euros, down 3% from 2017.

Additional reporting by Reuters