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%).
