On Wednesday 10 March, the Italian luxury footwear brand Tod’s unveiled in a press release its optimism regarding the figures for the year 2020, despite a net loss of 73.2 million euros, compared to a net profit of 46.3 million euros in 2019.
“The results for 2020 were deeply influenced by the pandemic, which particularly affected the luxury industry, causing long periods of shop closures in different parts of the world and the almost total disappearance of purchases linked to tourist flows,” stated Diego Della Valle, Chairman and CEO of the Group in a press release.
“In this context, we have increased our investments in marketing, in all its forms, mainly digital, which we consider to be a crucial communication tool to dialogue with new generations of consumers, which we consider to be a priority to fuel our future turnover growth.” he continued.
Apart from the fact that the pandemic, the lack of tourism, as well as the lockdowns disrupted the brand’s key markets such as Italy and the United States, the results were better than expected as analysts were expecting a loss of 106 million euros, according to a consensus published on the company’s website.
Revenue amounted to €637.1 million, down 30.4% from €916 million in 2019. In the fourth quarter of 2020, sales amounted to €184.5 million, down 22.6% compared to the fourth quarter of 2019.
According to Emilio Macellari, CFO, this was offset by sales in China with double-digit growth, while the Western region, after a modest improvement in October, suffered a further slowdown due to new health restrictions.
“The most positive drivers are the Far East and China in general as well as e-commerce, while the weakest remain Italy, Europe and the US.”
Also, this growth was driven by e-commerce.
“We are very pleased with the results obtained by the e-commerce channel, which has recorded a gradual acceleration during the year, meeting and exceeding our expectations and which continues to grow at a very high rate,” according to the president.
The Italian luxury group, which includes the Tod’s, Roger Vivier, Hogan and Fay brands, reported an adjusted loss before interest and tax of €93.7m, compared with EBIT (earnings before income and tax) of €3.6m in 2019.
Macellari confided that although the pandemic situation is “challenging”, the consensus for 2021 is “reasonable and achievable”, i.e. a turnover of €740 million and a loss of earnings before interest and taxes of €35 million.
“We are looking forward to the current year, also strengthened by the excellent feedback received on the new collections, although we must not forget the persistent context of great uncertainty, caused by the unknown Covid-19, still very present in many parts of the world. Aware of the Group’s financial strength, we have decided to propose to the Annual General Meeting that no dividend be distributed,” said Diego Della Valle.
Featured Photo : © Tod’s
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