May 10, 2023
Italian fashion group Tod's sales jump in Q1, beating expectations
May 10, 2023
Sales at Italian fashion group Tod's rose by 23% in the first quarter of the year, beating analysts' forecasts thanks to a strong performance in China and despite moderate growth in the Americas.
Revenues totalled 270.5 million euros ($297.8 million) in the period, the company said in a statement, while analysts had predicted 252 million euros, according to a Reuters-compiled consensus.
"Considering the good sales trends we experienced in April and the excellent orders' backlog for the winter collections, I'm confident about the group's future results," said Tod's Chairman and CEO Diego Della Valle.
Tod's sales in China were not very good at the beginning of the year, but they started to improve from the second half of January, the group's CFO Emilio Macellari told an analyst conference call.
Sales in the Greater China region were up 29% in the first three months.
"The trend we recorded as an average in the first quarter is still going on," Macellari said, adding that growth for the group in the second quarter will be as good as in the first one, but could be a bit lower in the second half of the year.
He added that Chinese customers are buying mainly at home and he does not expect large numbers of Chinese travellers around the world before the end of the summer.
Sales in Europe were driven by the strength of local demand and tourist purchases, especially from U.S., European and Middle Eastern customers.
In the United States sales rose 6.6%.
Macellari said the U.S. market represented a lower percentage of group sales compared to the industry average and Tod's is planning to open other stores and expanding its distribution there after boosting brand awareness.
Tod's CFO said he is confident of achieving the consensus sales figure for the year, currently at 1.1 billion euros.
© Thomson Reuters 2023 All rights reserved.