Tod’s yearly sales revenue up 1.7 percent in 2013
REPORT_ For the full year Tod’s sales revenues, at constant exchange rates, increased by 1.7 percent. Consolidated sales for the year were up 0.5 percent. In the fourth quarter of 2013, sales were up 0.8 percent from the same quarter of 2012. In financial year 2013 the impact of currency fluctuations was negative.
Tod’s is based in Italy. It operates in the luxury goods segment with shoes, accessories and apparel. Diego Della Valle, Chairman and CEO of the Group, said: “As expected, full year sales results confirmed the same trends of the previous quarters: very strong results abroad, mainly achieved by the Tod’s and Roger Vivier brands, partially offset by the impact of the rationalization strategy implemented on the Italian wholesale distribution. Our brands and products are deeply appreciated by our clients for their quality and craftsmanship. Even though the economic situation is challenging, we continue to develop our brands, by increasing the investments to strengthen the distribution network, the human resources and the production capacity, as the new factory for high quality accessories that we are currently building in Italy.”
The group has further strengthened its leadership in the core business of shoes. Sales of this product category were up 4.1 percent from financial year 2012. Sales through DOS represent 63.8 percent of consolidated turnover as of December 31, 2013. The 7.6 percent increase from financial year 2012 was driven by the widening of the DOS network and by the organic growth.
In financial year 2013 the Same Store Sales Growth rate, calculated as the worldwide average of sales growth rates at constant exchange rates registered by the DOS already existing as of January 1, 2012, was 2.3 percent. As of December 31, 2013, the group’s distribution network was composed of 219 DOS and 84 franchised stores, compared to 193 DOS and 78 franchised stores as of December 31, 2012.
2013 sales results show, on the one hand, the positive effects of the international expansion, mainly related to the Tod’s and Roger Vivier brands, and, on the other hand, the impact of the strategic decision to rationalize the Italian wholesale distribution, with the goal to preserve the brands’ exclusivity and positioning, also to maintain the very good quality of the credit portfolio.
The rationalization affected all the brands, but it was mainly evident on the results of Hogan and Fay, which are the brands, among the group’s portfolio, with the higher exposure to the Italian market and to the wholesale channel.