Tod’s Group returns to pre-pandemic sales with growth in Europe and online

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Strong sales growth in Western Europe and online helped Tod’s Group return to pre-pandemic levels in the fourth quarter of 2021, beating analysts’ expectations.

On Tuesday, the group, which includes the Tod’s, Hogan, Roger Vivier and Fay brands, posted sales of 261 million euros, up 9.6% at constant exchange rates compared to the fourth quarter of 2019. This increase was driven by strong accelerations at Tod’s and Roger Vivier. Digital sales grew by triple digits compared to 2019, although the group does not share specific e-commerce figures. For the full year, the group’s revenues amounted to 887 million euros, down 2.6% compared to 2019, also in constant currency. (Parisian fashion house Schiaparelli is separately owned by Tod’s Group Chairman and CEO Diego Della Valle and its sales are not consolidated into Tod’s Group earnings.)

“The gradual recovery in Western markets has added to the excellent results recorded by our brands in China, and on the Asian continent in general, with a trend that reflects the gradual improvement in market conditions but also confirms the great appreciation of customers for the quality and creativity of our collections,” Della Valle said in a statement.

The Tod’s group took longer to recover from the impact of the pandemic than other luxury groups. Richemont posted sales up 32% over 2019 in its third fiscal quarter from October to December 2021, and Brunello Cucinelli posted sales up 17.2% in 2021 over 2019. LVMH must publish its annual results on January 27, Kering on February 17 and Hermès on February 18. In the first nine months of 2021, sales of LVMH’s fashion and leather goods division increased by 38% compared to the first nine months of 2019. In the first nine months of 2021, sales of Kering increased by 9 % compared to the same period. in 2019.

Among Tod’s Group brands, Della Valle noted that early feedback on the new Spring/Summer 2022 collections currently in stores has been positive. “They allow us to look forward to 2022 with optimism, provided current market conditions do not deteriorate due to the pandemic.”

“They seem on track, with material improvement, although they are still behind the biggest players in the 2019 comparison,” says Bernstein analyst Luca Solca.

Improved product design and merchandising, along with an increase in marketing activity, especially on social media, have helped boost sales, says Thomas Chauvet, luxury goods analyst at Citi, who notes that this is the first quarter of double-digit retail growth since 2013. “Tod’s Group sales momentum in the fourth quarter of 2021 should support stocks in the near term,” Chauvet said. , this confirmed the greater desirability of the brand.The acceleration is very encouraging.

Tod’s revenue has steadily declined since 2015 as the brand lost momentum according to analysts who rate the missed sneaker opportunity as a product faux pas. In May 2021, Della Valle raised questions about the future of the business when he signaled his intention to exit the business as well as an opening to sell to LVMH. Few movements have been reported since.

“The group continues its long journey to rejuvenate the Tod’s brand after several years of same-store sales and declining margins,” adds Chauvet.

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