Shoe Giant Tod 'S Is Hopeless And Even The Chinese Market Is Almost Zero Growth.

Italy luxury group Tod 's SpA (TOD.MI) continued to be under pressure for the first quarter, and Emilio Macellari, chief financial officer of the group, said that this year it still faces enormous challenges in terms of revenue and profits, and warns analysts' performance may be lower than expected.

In the past 10 years, Italy's well-known shoe shoe group, known as the turning point year and the upcoming recovery, has yet to achieve any promise or even smooth performance.

In the first quarter, 216 million 400 thousand euro income declined by 4.3% compared with 226 million 100 thousand euros in the same period in 2018, while the fixed exchange rate decreased by 5.7%, while it was lower than the 221 million euros expected by the market.

Diego Della Valle, the group's chief executive, is still big in the earnings report, claiming that retail channel recovery is a positive signal, and even believes that the current strategy of the group is effective.

He said that cooperation with Alber Elbaz and the new flagship store of Via Montenapoleone Avenue will help the recovery of the group.

Despite double-digit growth in online channels, stimulating retail sales to grow by 9.2% in the first quarter and 7% in fixed exchange rates, same store sales still fell by 2.5% in the first quarter, and 4 and May were comparable to those in 1-3 months.

Group wholesale business plunged 21.7% in the first quarter, and the fixed exchange rate decreased by 22%, indicating that sub sales did not have confidence in the company's brand.

The Greater China market is the only growth market for the group in the first quarter, but the growth rate of 0.8% is also very ugly, with a real increase of 3.1%, from 48 million 700 thousand euros to 50 million 200 thousand euros.

Core footwear business fell 5% in the first quarter of the fixed exchange rate, and the Tod 's brand income fixed exchange rate fell by 12.7%, which completely offset the Roger Vivier brand's 13.7% fixed exchange rate increase.

4 shareholders' meeting in mid month, Tod 's SpA boss Diego Della Valle has said that this year the company will rely on double-digit growth in online channels to restore revenue growth, but from the first quarter and the two quarter of the first month, the goal is difficult to achieve.

Over the past three years, the income of Tod 's SpA has continued to decline.

No fashion Chinese network (micro signal: nofashioncn) data show that in 2018, the Italy footwear and leather goods group recorded a 2.4% decline in revenue, from 963 million 300 thousand euros in fiscal year 2017 to 940 million 500 thousand euros.

Fixed exchange rate revenues dropped slightly by 0.5%, Tod 's, Roger Vivier, Fay brands, leather accessories and clothing categories, Italy and the Americas market, and third party channels all declined, with 80% of footwear and 65% of retail sales reaching roughly the same level in 2017. Only Hogan brands and greater China and ROW markets grew.