"In the first quarter of the year, the Group recorded solid double-digit growth in revenues, which returned to above pre-pandemic values. The first two months were very strong for all our brands, all over the world, confirming the great appreciation of customers for the creativity of our collections and the quality of our products. The month of March was affected by the slowdown in the luxury sector in the Chinese market, due to the new and severe restrictions imposed by the government to deal with the new cases of Covid in various cities. (…) While we wait to better assess the impact of the war in Ukraine and the signals arriving from China on the Covid front, we continue to develop each brand in a way that is consistent with its strategy and its DNA, making all the necessary investments. The aim we have set ourselves is to focus on the greatest asset value we can give the individual brands and, therefore, the Tod's Group as a whole", commented Diego Della Valle, Chairman and CEO of the Group.
First Quarter Results
In the first quarter of 2022, the group’s consolidated revenue increased by 23%, reaching 219.6 million euros, on a comparable basis to the same period last year. Tod’s highlighted that the impact of currencies was positive, being particularly visible for the Tod's and brands, which have the greatest presence abroad.
Tod's brand revenue in this period amounted to 104.6 million euros (1Q 2021: 76.7 million euros, "confirming the strong appreciation by customers for the brand's collections". Vivier, whose revenue totalled 52.4 million euros (1Q: 48.6 million euros), experienced a slowdown in its growth in March thanks to the strong exposure to the Chinese market. Hogan recorded revenue of 51.6 million euros (1Q: 44.3 million euros) and Fay’s revenue amounted to 10.9 million euros (1Q 2021: 9.0 million euros).
By category, in the first quarter of the current fiscal year, all product categories reported solid double-digit growth: revenue generated from shoe sales grew by 17%, totalling 173.4 million euros; leather goods and accessories revenue rose by 63%, reaching 31.6 million euros, and apparel revenue was up by 31%, adding up to 14.4 million euros, on a comparable basis to the first quarter of fiscal 2021.
In the three months to the 31st of March, Tod's revenue in the domestic and European markets registered double-digit growth, by 17% and 29% respectively, "thanks to solid purchases by local customers and the return of intra-European and American tourism". Sales in the American market had a “very strong growth” of 68%, as compared to the same period last year, due to the "good momentum in consumption".
In China, sales increased by 9%, as compared to similar period of the previous year, suffering a slowdown in growth in the second half of March thanks to COVID-19 related restrictions. The 'Asia and the rest of the world' region recorded a growth of 42%, driven by the performance in the Japanese and Korean markets, with revenue exceeding both the values of 2021 and 2019.