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By
Reuters
Published
Jan 25, 2017
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Tod's 2016 revenue dips, hit by US, China weakness

By
Reuters
Published
Jan 25, 2017

Italian luxury group Tod's said on Wednesday 2016 revenue in 2016 fell by 3.2 percent at current exchange rates, hit by shrinking sales of leather goods as well as shoes and weakness in the U.S. and Chinese markets.


Tod's - Fall-Winter2017 - Menswear - Milan - © PixelFormula



The group, known for its Gommino loafers, said sales last year were 1.004 billion euros ($1.08 billion), broadly in line with a Thomson Reuters analyst consensus of 1.01 billion euros. Revenue fell 3.8 percent at constant exchange rates.

Chairman and Chief Executive Diego della Valle said in a statement that sales had improved in the last quarter of the year, compared to the first nine months.

The group has struggled in recent years as it sought to broaden the range of products offered diversifying away from its best-selling shoe models. Sales of high-margin leather goods fell 11 percent at constant exchange rates last year.

"The early feedback of the new summer collections is positive, and this confirms (that the company) is in the right direction, with the new strategy adopted giving us good signals", Della Valle added.

Same-store sales last year were down 12.2 percent at constant exchange rates.
 

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