Tod S Revealed That Retail Sales Are Still In Negative Growth So Far This Year.

Italy

Group Tod "s SpA (TOD.MI)" on Monday's performance analyst conference call revealed that retail sales in 2016 were still negative growth so far, and the same store sales in fixed exchange rate group recorded a 6% decline in fiscal year 2015.

Tod 's SpA (TOD.MI) opened 3.27% lower on Tuesday and reported 71 euros.

Tod, s SpA chief financial officer Emilio Macellari, reiterated at a conference call that mainland China's performance has stabilized, while Hongkong, the worst performing group, has 14 stores there.

He said that the same store sales in autumn and winter series recorded a decline in 11%-13%, and the situation changed after the spring and summer new products went public, but so far the same store sales decline is still 6% higher than that of last year. However, he believes that the current data is not enough for the group to form negative expectations for the first quarter or full year performance.

Emilio Macellari revealed that orders for the 2016 autumn and winter series increased over the same period last year, so the group is optimistic about the prospect of orders.

From the regional market, China, the United States and Japan are slowing down, with China's Spring Festival performance worse than expected, while Europe remains stable.

On the whole, he said that the group could achieve the 5% sales growth expected in the 2016 fiscal year and the EBITDA core profit margin target of 21%.

In the 2015 fiscal year, the group's core profit EBITDA (profit before interest tax depreciation amortization) rose 5% to 202 million 600 thousand euros compared with the previous year, which basically met market expectations. EBITDA profit margin was 19.5%, a 50 basis point lower than the 20% in fiscal 2014.

Net profit of 92 million 735 thousand euros is far lower than that of the 101 million euro forecast, which is 4.5% less than that of the previous year's 97 million 114 thousand euros.

The board of directors set the annual dividend at 2 euros per share in the previous year.

The group has already disclosed that the total annual revenue is 1 billion 37 million euros, slightly better.

The expected 1 billion 22 million euro is 7.4% higher than the previous year's 965 million 500 thousand euro, and the fixed exchange rate rose 1.8%.

The sales of the Greater China region, which accounted for more than 1/5 of fixed exchange rates, dropped by 12% annually, but the reduction was narrowed by 14% over the previous nine months.

Italy's largest market sales increased by 3.7%; the European market (excluding Italy) increased by 9.4% compared with the same period driven by France, Germany and Britain.

The increase in the Americas was 5.3%; the healthy growth momentum in Japan and South Korea boosted the growth of other markets in the world by 6.3%.

Only Tod 's is available throughout the year.

A slight decline in sales in the Greater China region, a 1% decline in sales, 2.8% and 3.5% growth in Hogan and Fay respectively, while Roger Vivier, which is close to the completion of the acquisition, continues to play the role of growth engine and sales soars by 12.2%.

In order to adapt to the market pformation, Tod s SpA intends to increase 15-20 new stores this year, and will also close several stores. The group Investor Relations Manager Cinzia Oglio said earlier this year that the Greater China region will only add two new stores this year.

Last year, the group opened 31 stores and 6 stores closed.

Emilio Macellari, chief financial officer, said that the group failed to negotiate rent reduction with Hongkong shopkeepers so far. Only two stores agreed to freeze the rent increase.

Tod 's SpA, Tod, s, Roger Vivier and Hogan are located in Harbour City and Lee Garden.

According to the data of no fashion Chinese network, Harbour City's parent enterprise 0004.HK and Li Yuan 0014.HK Co., Ltd. (0014.HK) both indicated that the sales of these two shopping malls were all down in 2015, and the retail sales of Harbour City decreased by 12.1%, and the retail sales of Li Yuan also decreased by 10%. The decline in sales led to a decrease in rental income, but the overall rent still had a single digit growth. Moreover, nine storehouses thought that their stores had the ability to bargain. Even though the luxury brands were still under the pressure of huge performance pressure, they still had light luxury brands and sports brand support, so there was no need to reduce rent.

Emilio Macellari said it would reduce 1-2 stores in Hongkong in the year. He also suggested that the luxury goods industry should ask for rent reduction.

At the time of the deadline, Tod 's SpA (TOD.MI) fell 5.2% to 69.55 euros in early trading, which has fallen 3.9% since 2016, and has fallen 23.1% in the past 12 months.