tods groups first quarter sales beat expectations despite slowing growth in china

Tod’s Group’s first-quarter sales beat expectations despite slowing growth in China

Sumary of Tod’s Group’s first-quarter sales beat expectations despite slowing growth in China:

  • Group chief financial officer Emilio Macellari said sales in China, a key market for luxury goods groups, could fall by 40% in the second quarter, but that would depend on how long the restrictions would last.
  • The feedback from global customers on the new series of leather goods and accessories is very good; footwear and ready-to-wear categories increased respectively.
  • However, thanks to strong performances in Europe and the US, the group is confident that it will meet analysts’ full-year expectations: analysts’ consensus estimate is for sales in 2022 of around 970 million euros and an EBIT margin of 5%.
  • The first two months saw a strong global performance for all our brands, confirming the great affirmation of our customers for the creativity and quality of our product range.
  • Diego Della Valle, Chairman and CEO of Tod’s Group, commented: In the first quarter of this year, the Group’s sales achieved steady double-digit growth, returning to pre-pandemic levels.
  • However, due to the restrictions of the epidemic blockade in Greater China, sales growth slowed down significantly in late March.
  • In terms of markets, sales in the Italian home market and in the European region recorded double-digit growth, thanks to the steady consumption of local consumers and the recovery of tourism in Europe and the United States; sales in the United States market increased (+68%).

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