Tod’s Sales Drop 30% in 2020 Despite Rebound in China

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Tod’s store in Rome. Shutterstock.

Sales at fashion group Tod’s fell by almost a third in 2020 after its revenues in the fourth quarter of the year were hit hard by the resurgence of the Covid-19 epidemic in Europe and the United States.

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Strong growth in China and in online sales in the fourth quarter failed to offset the fallout from the new lockdown measures as well as a lack of tourists in Western countries.

Total sales decreased by 22.6 percent in the fourth quarter after a smaller decline of 12.3 percent in the previous one, the Italian luxury leather goods maker said on Wednesday.

Tod’s, famous for its Gommino loafers, launched a new strategy in late 2017 to revamp its brands and lure younger consumers, but the pandemic has hampered its efforts.

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“Our primary goal is to consolidate our communication strategy, particularly the digital one. We are well advanced; when the markets return to normal, we will be ready to begin a lasting growth cycle,” Tod’s founder and top shareholder Diego Della Valle said in a statement.

Full-year revenues dropped by 30.4 percent to 637.2 million euros ($771.08 million) at current exchange rates, marking the fifth year in a row that annual sales have fallen. The decline is in line with a company-provided consensus of 636 millions euros.

Tod’s also said it had signed last week a credit agreement with a pool of banks for up to 500 million euros “to further strengthen the already solid group’s financial structure and mitigate the risk profile deriving from the current market situation”.

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By Claudia Cristoferi; editor: Jane Merriman

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