Dive Brief:
- Tod’s SpA reported unaudited sales revenue of 1.13 billion euros, or approximately $1.23 billion at current exchange rates, for fiscal 2023, showing an 11.9% increase year over year, per a Tuesday earnings release.
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All brands saw consolidated sales rise, with Tod’s, the largest by sales, up 10.4% to 563 million euros. Roger Vivier sales saw the biggest increase, rising 16.5% to 287 million euros. Hogan sales rose 9.3% to 214 million euros, and Fay sales rose 13.2% to 60 million euros.
- In February, Tod’s SpA announced plans to go private, and said it had entered an agreement with L Catterton that gave the LVMH-backed private equity firm a 36% stake in the Italy-based fashion house.
Dive Insight:
The deal with L Catterton marks the second time the company has attempted to go private. Reuters reported in December 2022 that DeVa Finance, the holding company for Tod’s SpA founders the Della Valle family, ended its first attempt to delist “after its initial buyout failed to meet the required threshold of support.”
In Tuesday’s earnings release, Tod’s SpA Chairman and CEO Diego Della Valle reaffirmed the company’s current plan to delist.
“We are very pleased to have achieved our yearly targets, even within a challenging international macroeconomic environment,” Della Valle said. “These results confirm the goodness of the strategy we are following to make our products increasingly special, of great quality and very desirable. The next few years will see us committed to the consolidation of individual brands, and this is also why we felt strategically important to share this project with the L Catterton investment firm by leaving the Stock Exchange, an institution with which we have always had excellent relations.”
Each product category at the company saw double-digit growth in 2023. Shoes, which represent the largest division, grew 10.4% to 858 million euros, while the apparel and leather goods and accessories divisions each grew by almost 17%, to 79 million euros and 187 million euros respectively.
By region, China had the most pronounced growth, at about 24% year over year, although the market there “has shown some volatility in results during individual quarters.” Growth in the Americas was the slowest, at under 4%, but the company said the region showed “a progressively improving trend in recent months.”
The company additionally announced it was amending its 2024 financial calendar “due to the significant change planned in the Board of Directors” in connection with the L Catterton announcement. First quarter earnings for 2024 will be released on May 15, instead of the previously scheduled date of April 24, and the postponement is designed “to allow the new directors to take a full view of the documents on which they are called upon to deliberate.”
