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MILAN, September 8 (Reuters) – Tod’s fell to an operational loss in the first part of this year after a 44% drop in sales due to the coronavirus crisis, which forced luxury goods brands to temporarily close retail stores around the world and close Production Sites.
The aftermath of the pandemic will also affect the year despite recent recovery symptoms in China, the organization said Tuesday, adding that it was too early to quantify its full impact.
The Italian company’s revenue, which stands out for its Gommino loafers, fell to 256. 9 million euros ($302. 9 million) in the six months of June, in line with analysts’ estimates of 255 million euros, according to Refinitiv’s consensus.
In the quarter of the quarter of the time, the peak affected by the crisis, sales fell by 56. 3%, a steeper decline than that of top luxury competitors.
“The current quarter was worse than the first, as almost all retail outlets were closed for most of the period,” Tod’s founder and principal shareholder Diego Della Valle said in a statement.
“In recent weeks, we’ve noticed encouraging symptoms of recovery,” he said. The organization recorded a double-digit sales expansion in China, but said Europe and America remained weak due to a lack of tourists. recorded a pre-interest and tax loss (EBIT) of 64. 1 million euros at an operating profit of 5. 8 million a year earlier.
Revenues fell in 2019 in a fourth consecutive annual decline, but recovered in the final quarter and early 2020, a positive sign for the group’s recovery strategy, but the COVID-19 epidemic has heavily affected recovery efforts.
Analysts estimate that the company’s sales will fall in a quarter this year to about 680 million euros, and then an uptick to 790 million euros in 2021, a point still below the turnover of 916 million euros reported in 2019.
The company is also expected to report an operational loss in 2020 and 2021, based on a consensus estimate on the group’s website.
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