MILAN — The Tod’s Group surpassed the 1 billion euros benchmark in 2022.
In the 12 months ended Dec. 31, preliminary sales rose 13.9 percent compared with 883.8 million euros in 2021. This is about 10 percent higher than the pre-pandemic level of 2019.
The impact of currencies was positive, particularly for the Tod’s and Roger Vivier brands, which have the largest presences abroad. At constant exchange rates, including the effects of hedging, revenues rose 11.4 percent last year.
In a statement, Diego Della Valle, chairman and chief executive officer, expressed his satisfaction with the results. “It is even more important to see the quality of these numbers: the growth, in fact, was driven by the retail channel and the Tod’s brand, which recorded excellent results in all product categories,” Della Valle said. “We are reaping the first results of the medium-term strategy that we have launched in recent years, which aims to increase the equity value of the group and of each individual brand, allocating all the investments necessary to obtain this result. We are pleased to note that our customers are increasingly appreciating the very high quality of our products, their craftsmanship and their iconic Italian lifestyle with a strong creative value.”
Roger Vivier revenues were up 7.1 percent to 246 million euros, although the brand’s growth slowed down starting in March due to its high exposure to the Chinese market, which was impacted by the restrictions to curb the COVID-19 pandemic.
Hogan sales gained 10.9 percent to 195.9 million euros, and Fay was up 10.7 percent to 53.4 million euros.
Sales in Italy climbed 15.9 percent to 251.7 million euros, and Europe was up 25.7 percent to 216.8 million euros. The two regions saw a progressive improvement starting from the second quarter of 2022, lifted by domestic spending and a strong presence of intra-European, American and Middle Eastern tourists.
Sales in the Americas climbed 31.2 percent to 81.9 million euros, boosted by a favorable comparison base and despite the fact that Americans shifted their purchases abroad, especially during the summer months.
Greater China reported a sales decrease of 8.4 percent to 287.2 million euros. After a good start to the year, China suffered a significant slowdown in growth, starting in March, due to the strict government restrictions. Even after the progressive easing of these measures in the second half of the year, consumer demand remained volatile and was dented by the lockdowns in several primary cities, noted the company.
Sales in the rest of the world area jumped 43.3 percent to 169.3 million euros, driven by a very strong performance of Japan and South Korea.
“We are continuing the development of our distribution network, with the opening of selected boutiques also in new markets and we are particularly focused on improving the organic growth,” Della Valle said.
The retail channel grew 12.7 percent to 743.3 million euros in revenues in 2022, representing about 74 percent of total sales. Organic growth was positive and the e-commerce channel also registered positive results, boosted by the group’s digital investments.
“We are also increasingly strengthening our marketing and communication team, with particular attention to the digital world, to get closer and closer to the younger clientele,” Della Valle continued. “Considering the excellent start to the year in our stores and the solidity of the order book for next season, we are very confident regarding the group’s future results.”
As of Dec. 31, the distribution network comprised 333 directly operated stores and 89 franchised stores, compared to 318 directly operated stores and 88 franchised stores at the end of December 2021.
After a rationalization of the wholesale distribution over the past few years, sales in this channel were up 17.5 percent to 263.6 million euros.
By category, sales of shoes rose 10.5 percent to 776.8 million euros, remaining the group’s core business.
Leather goods and accessories climbed 33.7 percent to 160.6 million euros, and apparel was up 13.9 percent to 67.8 million euros.
The Tod’s Group earlier this month joined the United Nations Global Compact, the largest strategic sustainability and corporate citizenship initiative in the world.
“Our commitment to adopting responsible behavior for the protection of human rights, health, safety and well-being in the workplace, also promoting the protection of the environment and ecosystems, is part of our culture and reflects the values that our organization has always translated into concrete and virtuous projects for the benefit of the communities and territories in which we operate,” Della Valle said.
The group’s board also approved the new policy for the protection of diversity, equity and inclusion.
Full 2022 results will be approved by the board scheduled on March 13.
Tod’s Group abandoned plans to delist in December following a failed tender offer. The delisting was to enable the group to invest in each of the brands it controls in the medium and long term without the limitations of having to report quarterly results. The goal was to enhance the visibility of each label, strengthening their positioning in the high end of the market, and provide more operational autonomy.