High-end footwear group Tod’s achieved sales revenues of €454.6 million in the first six months of 2019. This represents a decline of 4.7% compared to the same period in 2018. Reports Leatherbiz.
Flagship brand Tod’s contributed €231.2 million towards the total, down by almost 10% year on year.
Roger Vivier became the group’s second-biggest generator of revenue with sales of €101 million for the six-month period, just ahead of Hogan, which brought in €100.5 million. Hogan’s revenues were down by 4.5%, but Roger Vivier’s were up by 11.6%. Fourth brand, Fay, contributed €21.5 million towards the group total, 12.8% down year on year.
Commenting on these figures, chief executive, Diego Della Valle, said they reflect a higher level of spend to support “brand visibility” at the Tod’s group. He described a “fiercely competitive landscape” in which the major players in the world of fashion are “increasingly prioritising leathergoods and, to an even greater extent, footwear”.
What this suggests is that a greater focus on high-earning categories such as footwear and leathergoods among the world’s leading fashion groups is taking market share away from specialist shoe-focused competitors such as Tod’s.
“Our products represent at the highest level in the world of high quality and Italian style, and this is why our loyal customers follow us and are fond of our brands,” Mr Della Valle insisted. “The real challenge for us is now to become even more attractive for young customers in new markets, who are currently the biggest spenders on fashion and luxury goods.”
He said that, to achieve this quickly, it has been necessary for Tod’s to increase its investment in being “more attractive and visible”.