Tod’s Group sales drop 2,7% in the first half 2014
Tod’s Group (Tod’s, Hogan, Roger Vivier, Fay) reports a 2,7% decline in sales to 477.7 million Euros in the first half of 2014 compared to the same period in 2013. Roger Vivier was the only brand of the group which registered positive sales in the first half of 2014, with a 1,4% increase.
In the first half of 2014 the Group’s EBITDA was 103 million Euros, with a 21.6% margin on sales. The decrease of the EBITDA reflects the strategic decision to continue the investments in the distribution network, in communication and in human resources.
Europe brought positive results for the group in the first 6 months of 2014, with sales of 108 million euros (+7% at constant exchange rates) while sales in Greater China were sluggish. The performance of Greater China confirmed the weakness of the last few months, which is considered to be related to the general and deep contraction of luxury goods consumption, due to the significant drop of clients in the malls. However, the performance of the most recent weeks, with the introduction of the Fall Winter collection, is much more encouraging. Sales in Greater China were 117.8 million Euros, down 3.6% from the first half of 2013, at constant exchange rates.
Tod’s Group invested 33 million euros in new stores and production sites, an increase of 50% compared to the first half of 2013, an amount equal to 7% of revenues interim reports.
As of June 30th, 2014 the Tod’s Group distribution network was composed of 229 directly operated stores and 87 franchised stores, compared to 200 directly operated stores and 79 franchised stores as of the end of June 2013.