MILAN, Sept 7 (Reuters) - Sales at Italian fashion group
Tod's rose by 17% in the first half of the year,
broadly in line with market expectations, despite a COVID-driven
slump in China in the second quarter.
Revenues totalled 467.5 million euros ($464.70 million) in
the six months to June, pushed by Europe and Americas, while
they fell by 19% in Greater China at constant exchange rates due
to COVID-19 restrictions, the company said on Wednesday.
Operating profit rebounded to 17.7 million euros from a 2.7
million euros loss an year earlier.
Analysts had expected 464 million euros in sales and a 9
million euros EBIT, according to a Refintiv consensus.
"Revenues returned to values higher than those of 2019",
founder and main shareholder Diego Della Valle said in a
statement, adding the group would focus on distribution network
efficiency and on digital "with the aim of increasing
like-for-like and higher-margin turnover".
Last month Tod's founding family said it would take the
group private to try to revive its fortunes by sparing the
company the short-term scrutiny of the market and by managing
its diverse brands separately.
In addition to the eponymous brand famous for its Gommino
loafers, Tod's also owns the Fay and Hogan labels, as well as
the high-end shoemaker Roger Vivier.
It launched a new strategy in late 2017 to revamp its brands
and appeal to younger consumers, but the pandemic hampered its
efforts. Group sales bounced back last year, marking the first
increase after five years of consecutive declines.
The buyout bid is the latest attempt to relaunch a company
that, like other Italian brands that built their name on
craftsmanship, has struggled to keep up with rivals and appeal
to younger luxury shoppers in recent years.
($1 = 1.0060 euros)
(Reporting by Claudia Cristoferi, editing by Federico Maccioni
and Keith Weir)