Italian luxury goods group, Tod’s registered a 14.6 per cent drop in its like-for-like store sales in the first nine months of the year, and has attributed the plunge to decline in purchases made by tourists and clients in Greater China.
Sales in the first three quarters of 2016 fell by 3.7 per cent to Euros 757.7 million (at current exchange rates), which is below the analysts’ average estimate of Euros 766 million. At constant exchange rates, sales were down 4.4 per cent.
Brand-wise, Hogan sales dropped 2.8 per cent to Euros 171.9 million; revenues from Fay brand however increased by 4.1 per cent to Euros 45.5 million; and Roger Vivier revenues surged 6.9 per cent to Euros 119.8 million.
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Diego Della Valle, Chairman and Chief Executive Officer – Tod’s commented, “As expected, the sales figures for the nine months reflect a volatile and uncertain economic and financial environment, characterized by the persistent weakness of consumption in many important markets for luxury goods. We remain focused on organic growth of the stores, and also attribute great importance to the wholesale channel, which is evolving continuously and which we carefully monitor in order to react to its dynamics. We continue to invest in communication and in marketing, with the same investments as in the past years, giving particular emphasis to digital.”
