TOD'S S.P.A. 
Milan - August 7th, 2019
TOD'S S.p.A. - Group's sales totaled 454.6 million Euros in the first half of 2019. Retail
revenues (70% of the total): +6.5%; Roger Vivier grew by 11.6%
The Board of Directors approved Tod's Group 2019 Half-Year Report
Group's sales: 454.6 million Euros, -4.7% from H1 2018
In compliance with the IFRS 16 accounting principles, the key financial figures are:
EBITDA: 80.4 million Euros1, equal to 17.7% of sales
EBIT: 5.8 million Euros
Group's Net Income: -6.0 million Euros
Net Financial Position: 509.3 million Euros
The Board of Directors of Tod's S.p.A., the Italian company listed on the Milan Stock Exchange and holding of the luxury goods group of the same name operating in luxury and quality shoes, accessories and apparel with the Tod's, Hogan, Fay and Roger Vivier brands, today approved the Group's report for the first half of 2019 (January 1st - June 30th, 2019).
Message of the Group's Chairman and CEO
Diego Della Valle, Chairman and CEO of the Group, commented as follows:
"Half-year results reflect the temporary effect of higher than expected investments we have decided to do to support our Brands visibility, in a fiercely competitive landscape, where the leading global Brands are increasingly prioritizing leather goods and, even more, footwear.
Our products represent at the highest level the world of both high quality and Italian style, and this is why our loyal customers follow us and are fond of our brands. The real challenge for us is now to become even more attractive for the young customers who live in the new markets, which are currently the major spenders on fashion and luxury goods.
To do this quickly, we need to increase our investments to be more attractive and visible. This will bring us the turnover that we need to have an adequate and more than satisfactory profitability. Currently, our Group is properly structured and
1 With the introduction of the new IFRS 16 accounting principle, as of January 1, 2019 leasing contracts are accounted differently from the past, with significant impacts on EBITDA, EBIT, Net Invested Capital, Net Financial Position and Operating Cash Flow. Therefore, in order to make data as of June 30th, 2019 comparable with the data of the previous periods, in this press release also the "adjusted" values of the above mentioned results are presented.
TOD'S S.P.A. - SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID - REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)-VIAFILIPPO DELLA VALLE N. 1
FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com
led by a strong management team. Tod's Factory's operating model is delivering on its promises and moving in the right direction. E-commerce is growing very well and we are getting encouraging results from our retail network. Therefore we strongly believe that now is the time to invest without hesitation to get the necessary turnover, which is certainly achievable. Any short term margin sacrifice is to favor the medium term profitability and capitalization of both the Group and its Brands.
My Family and I are strongly confident in the effectiveness of our strategy and we will continue to be buyers of Tod's shares, as we were in the past.."
Comments to the Group's sales
In the first half of 2019, consolidated sales were 454.6 million Euros, down 4.7% from H1 2018.
In the current year, currency fluctuations gave a positive contribution, particularly to the Tod's and Roger Vivier brands, which have the greatest presence abroad. At constant exchange rates, meaning by using the average exchange rates of the first six months of 2018, including the related effects of hedging contracts, sales would have been 449.8 million Euros.
As usual, we remind that analyzing quarterly figures is not fully meaningful, due to the discrepancies in the flow of industrial revenues on a monthly basis. Furthermore, in the current year, the comparison by distribution channel is influenced by the acquisition of Italiantouch (starting from October 1st, 2018, the relative portion of e- commerce revenues is accounted for in retail revenues, and no longer in the wholesale channel).
Breakdown of consolidated sales by brand
(million Euros) | ||||||||||||
H1 2019 | H1 2018 | % change | FY 2018 | |||||||||
reported rates | constant rates | reported rates | constant rates | |||||||||
Tod's | 231.2 | 228.1 | 256.2 | - 9.7% | -11.0% | 498.7 | ||||||
Roger Vivier | 101.0 | 99.5 | 90.4 | +11.6% | +10.1% | 173.5 | ||||||
Hogan | 100.5 | 100.3 | 105.2 | - 4.5% | - 4.7% | 206.1 | ||||||
Fay | 21.5 | 21.5 | 24.7 | -12.8% | -12.9% | 61.3 | ||||||
Other | 0.4 | 0.4 | 0.4 | n.m. | n.m. | 0.9 | ||||||
TOTAL | 454.6 | 449.8 | 476.9 | -4.7% | -5.7% | 940.5 |
Tod's sales totaled 231.2 million Euros in the first half of 2019; the results of the retail channel are positive.
TOD'S S.P.A. - SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID - REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)-VIAFILIPPO DELLA VALLE N. 1
FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com
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Revenues of Roger Vivier totaled 101 million Euros, up 11.6% from H1 2018. All the regions posted positive results, with the exception of the US.
Hogan sales were 100.5 million Euros; the decrease is mainly due to the weakness of the Italian market. The brand registered positive results abroad, and a double-digit growth in China.
Finally, sales of Fay were 21.5 million Euros; the decrease, as compared to H1 2018, is entirely due to the weakness of the wholesale channel.
Breakdown of consolidated sales by product category
(million Euros)
H1 2019 | % change | FY 2018 | ||||||||||
reported rates | constant rates | H1 2018 | reported rates | constant rates | constant | |||||||
rates | ||||||||||||
Shoes | 367.8 | 364.1 | 383.7 | -4.2% | -5.1% | 743.7 | ||||||
Leather goods | 62.3 | 61.2 | 65.5 | -4.9% | -6.6% | 128.6 | ||||||
and accessories | ||||||||||||
Apparel | 24.1 | 24.1 | 27.3 | -11.7% | -11.8% | 67.3 | ||||||
Other | 0.4 | 0.4 | 0.4 | n.m. | n.m. | 0.9 | ||||||
TOTAL | 454.6 | 449.8 | 476.9 | -4.7% | -5.7% | 940.5 |
Revenues from shoes were 367.8 million Euros in the first half of 2019; the decrease, as compared to the same period of 2018, is mainly due to the wholesale channel.
Sales of leather goods and accessories totaled 62.3 million Euros. The improvement registered in the second quarter confirms the strong results of the new families of the Tod's brand.
Finally, sales of apparel were 24.1 million Euros; the performance broadly reflects the trend registered by the Fay brand.
TOD'S S.P.A. - SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID - REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)-VIAFILIPPO DELLA VALLE N. 1
FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com
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Breakdown of consolidated sales by region
(million Euros)
H1 2019 | % change | FY 2018 | ||||||||||||||
H1 2018 | constant | |||||||||||||||
reported rates | constant rates | reported rates | constant rates | |||||||||||||
rates | ||||||||||||||||
Italy | 125.2 | 125.2 | 138.4 | -9.6% | -9.6% | 282.2 | ||||||||||
Europe | 115.3 | 115.2 | 124.9 | -7.7% | -7.8% | 243.9 | ||||||||||
(excl. Italy) | ||||||||||||||||
Americas (*) | 34.0 | 32.5 | 36.5 | -7.0% | -11.2% | 73.0 | ||||||||||
Greater | 111.6 | 109.7 | 109.1 | +2.3% | +0.6% | 210.3 | ||||||||||
China (**) | ||||||||||||||||
Rest of | 68.5 | 67.2 | 68.0 | +0.8% | -1.1% | 131.1 | ||||||||||
World | ||||||||||||||||
TOTAL | 454.6 | 449.8 | 476.9 | -4.7% | -5.7% | 940.5 |
- This line includes the whole American continent (Northern and Southern America). (**) This line includes: mainland China, Hong Kong, Macao and Taiwan.
In the first half of 2019, domestic sales were 125.2 million Euros; the decrease, compared to the same period of 2018, is entirely due to the weakness of the wholesale channel, while the results in the retail channel are positive.
In the rest of Europe, the Group's revenues totaled 115.3 million Euros; also in this region, the performances are divergent in the two distribution channels.
In the Americas sales amounted to 34 million Euros, down 7% from H1 2018. As already commented by other industry players, in the last few months the market experienced a significant slowdown in demand, even on local customers.
The Group's sales in Greater China totaled 111.6 million Euros, up 2.3% from H1 2018. Positive results in mainland China, which represents more than 60% of this region, with an acceleration of the growth in the second quarter, despite the price cuts made in April to reflect the reduction in duties. On the contrary, the performance in Hong Kong worsened, due to the known political tensions.
Finally, in the area "Rest of the World" the Group's revenues were 68.5 million Euros, slightly higher than H1 2018. The DOS channel grew, with particularly strong results in Japan and in Korea.
TOD'S S.P.A. - SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID - REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)-VIAFILIPPO DELLA VALLE N. 1
FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com
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Breakdown of consolidated sales by distribution channel
(million Euros) | |||||||||||||
H1 2019 | % change | FY 2018 | |||||||||||
reported rates | constant rates | H1 2018 | reported rates | constant rates | constant | ||||||||
rates | |||||||||||||
Retail | 319.2 | 315.1 | +6.5% | +5.1% | |||||||||
(DOS+online) | 299.7 | 607.8 | |||||||||||
Third parties | |||||||||||||
(Franchised | 135.4 | 134.7 | -23.6% | -24.0% | |||||||||
stores + | 177.2 | 332.7 | |||||||||||
Independent | |||||||||||||
retailers) | |||||||||||||
TOTAL | 454.6 | 449.8 | 476.9 | -4.7% | -5.7% | 940.5 |
In the first half of 2019, retail revenues totalled 319.2 million Euros and represent approx. 70% of the Group's turnover. The 6.5% growth, as compared to the same period of 2018, was driven by the sound double-digit growth of e-commerce (included in the retail channel starting from October 1st, 2018 with the acquisition of Italiantouch). The contribution of the new openings is also positive, while the organic growth figure remains negative.
The Same Store Sales Growth (SSSG) rate, calculated at constant exchange rates as the worldwide average of sales growth rates registered by the DOS network, is -4.5% in the first half of the year (from January 1st to June 30th, 2019). At reported rates, the value is more than 100 bps higher.
As of June 30th, 2019 the Group's distribution network was composed by 288 DOS and 114 franchised stores, compared to 285 DOS and 122 franchised stores as of June 30th, 2018.
Revenues to third parties totaled 135.4 million Euros; net of the impact of the acquisition of Italiantouch and the conversion into DOS of the Australian franchised stores, the weakness of the channel remains, especially in the domestic and European markets.
TOD'S S.P.A. - SHARE CAPITAL EURO 66,187,078 ENTIRELY PAID - REGISTERED OFFICE: SANT'ELPIDIO A MARE (FM)-VIAFILIPPO DELLA VALLE N. 1
FISCAL CODE AND REGISTRATION NUMBER WITH THE FERMO REGISTER: 01113570442 - CORPORATE WEBSITE: www.todsgroup.com
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Tod's S.p.A. published this content on 07 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2019 16:39:05 UTC
