Tod's reports 3.2 percent fall in FY16 sales
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Business
Tod’s said that its consolidated sales were 1,004 million euros (1,065 million dollars) in FY 2016, down 3.2 percent from FY 2015. In Q4, sales totalled 246.3 million euros (261 million dollars), down 1.5 percent from Q4 2015. The company said, this result implies a significant improvement compared to the first nine months of the year, confirming the success obtained by the fall/winter collections. At constant exchange rates, including the related effects of hedging derivatives, Tod’s said, sales would have been 997.5 million euros (1,058 million dollars) down 3.8 percent from the previous year.
Commenting on the company’s results, Diego Della Valle, Chairman and CEO of the Group, said in a media statement, “As anticipated in January and as evident from the fourth quarter figures, we have registered a good improvement in the sales trend with the arrival in the stores of the fall/winter collections, that reflect the brands’ DNA and the Italian style, and well combine quality, craftsmanship and innovation.”
Tod’s brand sales decline 6.7 percent
Tod’s sales totalled 559 million euros (593 million dollars) in fiscal year 2016. The company said, the 6.7 percent decrease compared to the previous year is mainly due to the sharp decline of traffic in the stores, in particular of tourists. Hogan revenues were 214.2 million euros (227 million dollars), down 3.2 percent mainly due to the poor performance in domestic market.
Revenues of the Fay brand were 62.6 million euros (66 million dollars), up 5.3 with a sharp acceleration in the fourth quarter. Sales of Roger Vivier totalled 166.3 million euros (176 million dollars), up 6.6 percent from the previous year. The company said, Roger Vivier was also affected by the sharp decline of traffic and consumptions in many important markets for luxury goods, mainly of tourists.
Revenues from shoes were 791.3 million euros (839 million dollars) in the year, down 2.5 percent from 2015. Sales of leather goods and accessories totalled 142.5 million euros (151 million dollars), down 9.4 percent from 2015, while sales of apparel were 68.3 million euros (72 million dollars), up 2.2 percent from 2015.
Domestic sales decline 3.5 percent
Domestic sales were 311.5 million euros (330 million dollars), down 3.5 percent, and in the rest of Europe, the Group’s revenues totalled 250 million euros (265 million dollars), slightly higher than in 2015. Tod’s said, positive results were seen in all the main countries where the Group operates, except for France and UK.
In the Americas sales amounted to 96.7 million euros (102 million dollars), down 8.4 percent from the previous year. Revenues in Greater China totalled 210.3 million euros (223 million dollars), down 6.8 percent from the previous year. The company said, Mainland China and Macao registered positive results, while Hong Kong remained weak, even if visibly improving. Finally, in the Rest of the World, the Group’s sales were 135.5 million euros (143 million dollars), slightly higher than last year with Korea registering a double-digit growth in revenues. Japan was broadly flat compared to last year, despite the very challenging comparison basis.
Sales through DOS totalled 630.3 million euros (669 million dollars), down 4.3 percent. The same store sales growth (SSSG) rate, calculated as the worldwide average of sales growth rates registered by the DOS already existing as of January 1st, 2015, at constant exchange rates, was down 12.2 percent in the fiscal year. As of December 31, 2016 the Group’s distribution network was composed by 272 DOS and 107 franchised stores, compared to 257 DOS and 98 franchised stores last year.
Revenues to third parties totalled 373.7 million euros (396 million dollars); the small decline, as compared to last year, mainly due to the very challenging comparison basis since in the fourth quarter of 2015, this channel grew by 28.7 percent.
Comments on the Profit & Loss key figures
In fiscal year 2016 the Group’s EBITDA was 180.9 million euros (192 million dollars), with a 18 percent margin on sales. The company said, despite a slight reduction of the gross margin, due to a different mix by product, region and distribution channel, the EBITDA margin benefitted from the lower incidence on sales of costs for the use of third parties assets (equal to 11.7 percent in 2016, compared to 12.4 percent in 2015) and from the lower incidence on sales of cost for services (22.8 percent in 2016, compared to 23.8 percent in 2015).
The Group’s EBIT was 128.4 million euros (136 million dollars), with a 12.8 percent margin on sales; the incidence on sales of depreciation and amortisation was stable and equal to 5.2 percent. At constant exchange rates, Tod’s said, EBITDA and EBIT would have been, respectively 171.7 million euros (182 million dollars) with a 17.2 percent margin on sales and 118.7 million euros (126 million dollars) with a 11.9 percent margin.
Profit before taxes was 115 million euros (122 million dollars), lower than in FY2015, due to the higher negative impact of the balance of financial operations, mainly due to the trend of the cross rates of some currencies used by the Group and to higher expenses on some loans. The Board approved also to propose the distribution of a dividend of euro 1.702 (1.81 dollars) per share, which corresponds to a pay-out of 64.8 percent, lower than 66 percent in the previous year.
In short
Picture:Facebook/Tod's