“o. itemList. length” “this. config. text. ariaShown”
“This. config. text. ariaFermé”
MILAN (Reuters) – Tod’s suffered operating losses 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 outlets across the world and inactivate 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 at most all the retail stores were closed for most of the period,” Tod’s founder and principal shareholder Diego Della Valle said in a statement.
“In 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.
On an adjusted basis, the organization posted a loss before interest and taxes (EBIT) of € 64. 1 million at an operating profit of € 5. 8 million a year earlier.
Revenue fell in 2019 in a fourth consecutive annual drop, but recovered in the last quarter and early 2020, a positive signal to the group’s recovery strategy, but the COVID-19 epidemic has strongly affected recovery efforts.
Analysts estimate that the company’s sales will drop a quarter this year to about 680 million euros, and then they are noted to recover to 790 million euros in 2021, one point still below the reported turnover of 916 million euros. 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.
(Reporting via Claudia Cristoferi; Editing via Silvia Aloisi and Jan Harvey)