Italian fashion group, Tod’s, has reported a better-than-expected 23% increase in sales for the first quarter of this year. The company’s strong performance in China was a key factor in its success, despite moderate growth in the Americas. Revenue for the period reached €270.5 million ($297.8 million), surpassing the forecasted €252 million. Tod’s Chairman and CEO, Diego Della Valle, expressed confidence in the group’s future results, highlighting positive sales trends in April and a robust backlog of orders for the winter collections.
According to Tod’s CFO, Emilio Macellari, sales in China faced challenges at the start of the year but began to improve in the latter half of January. Sales in the Greater China region saw a significant increase of 29% during the first three months. Macellari also noted that the growth witnessed in the first quarter has continued, with the expectation that the second quarter will match the same level of success, although potentially slightly lower in the second half of the year. Macellari mentioned that Chinese consumers are predominantly purchasing within their own country, and he doesn’t anticipate a significant number of Chinese tourists traveling abroad until the end of the summer.
In terms of regional sales, Tod’s experienced strong demand in Europe, driven by local consumers and tourists, particularly from the United States, Europe, and the Middle East. The company also witnessed a 6.6% increase in sales in the United States. Macellari recognized that the US market represents a smaller portion of Tod’s overall sales compared to industry averages. As a result, Tod’s plans to open additional stores and expand distribution in the US to boost brand awareness.
Looking ahead, Macellari expressed confidence in achieving the consensus sales figure for the year, which currently stands at €1.1 billion. With the positive momentum seen in the first quarter and anticipated growth in various regions, Tod’s appears well-positioned for continued success in the fashion industry.
For more information on Tod’s impressive sales growth, visit Tod’s official website. Additionally, if you want to stay updated on the latest fashion industry news, Business of Fashion is a reliable source.
