Tod 'S Group Suffered Setbacks In Its First Half Performance

Tod 's group suffered a setback in the first half of the year. In the first six months ended June 30th, the Tod 's group's turnover fell by 3.4% to 497 million 600 thousand euros, while the fixed exchange rate and the sales volume under the terms of the hedging contract decreased by 4.3%.

Tod's is located at a store in Hongkong's landmark Plaza.

Among them, the group's global direct store sales fell 4.9% to 311 million 200 thousand euros, while the same store sales growth rate was 14.3% lower in the first half of the year under the constant exchange rate basis, reflecting the global trend. Luxury goods The weakening and slowing down of consumption.

　 By brand

core brand Tod 's performance is in a predicament, and Tod' s brand's big revenue comes from its iconic products. Doug shoes "But compared with other luxury brands, Tod's brand products are too single to attract consumers, especially young consumers.

Tod 's turnover fell 7.2% to 282 million 500 thousand euros, mainly due to continued weakness in Europe, the US region and greater China, as well as the decline in tourism consumption.

Hogan turnover fell by 2.5% to 106 million 100 thousand euros, mainly due to the decline of local consumer and tourism consumption strength in the second quarter of Italy.

Fay turnover rose 8.8% to 24 million 900 thousand euros, thanks to the growth of regional performance. The company refers to double-digit growth in the Asian market, but no specific data are provided.

The turnover of Roger Vivier rose by 6.2% to 83 million 400 thousand euros, and the global growth was achieved except for the United States. The company said that the second quarter growth rate slowed down obviously because of the time of payment.

Tod 's Group Chairman and CEO Diego Della Valle

　 By category

Core footwear sales fell 2.5% to 400 million 300 thousand euros, the group emphasized that the decline in performance was mainly a very challenging market environment, and different delivery time.

Leather and accessories sales fell 10.7% to 69 million 300 thousand euros. The group said: "data in the first half of the year reflect a part of the Tod s product line at a disadvantage." Garment sales rose 3.7%, recording 27 million 300 thousand euros.

By Region

Group's largest market, Italy's revenue fell 2.7%, to 148 million 800 thousand euros, mainly affected by Hogan business.

In other parts of Europe, turnover fell by 1.7% to 120 million 100 thousand euros, mainly due to the decline of tourism consumers. France and Britain are the weakest countries in the world.

U.S. regional revenue fell 6% to 48 million 700 thousand euros, mainly by second quarter turnover significantly reduced.

In the Greater China region, turnover fell by 9.5% to 107 million euros, mainly due to continued weakness in Hongkong. The turnover in mainland China is slightly higher, but it is still in a negative state.

In other countries, regional turnover rose by 4.1% to 73 million euros, mainly driven by the Korean market.

Group CEO Diego Della Valle pointed out that sales figures in the first half of 2016 reflected that the industry and the market were still highly unstable, but even under such adverse circumstances, the group's development plan would still invest more innovative products through various channels to promote growth.

In March this year, Tod 's group revealed its plan to reduce market expansion. Diego Della Valle stressed the group's main goal now to improve organic growth in its first half performance on Thursday. As of June 30th, there were 261 stores and 103 franchised stores, compared with 251 outlets in the end of June last year, and 93 franchised stores. In the past year, the group has closed 10 licensed stores.

Tod 's group has been committed to the future development strategy planning. At the beginning of this year, Tod 's had split up with women's designer Alessandra Facchinetti. The group says it does not need traditional designers now. Diego Della Valle said it will make a comprehensive rectification of Tod 's, eliminate seasonal and launch new products every month to increase exposure opportunities in digital media. The CEO warned that in the coming years, the new system of fashion system will emerge and the whole business mode is changing. Tod s group will complete the transformation by the end of this year.

However, Exane BNP Paribas luxury management Luca Solca analysis shows that Tod 's group has been battered by core businesses, and of course, the overall market environment is difficult, but Gucci's innovation and high growth rate of Hermes still stand out. Tod' s seems to have yet to find a reasonable way to re stimulate growth.