MILAN — Tod’s 2021 revenues beat expectations and the company’s shares reflected its strong performance by shooting up throughout Wednesday morning on the Milan Bourse and reaching a 11.7 percent gain at 44.92 euros before noon CET.
The evening before, at the end of trading, the Italian luxury goods company reported preliminary 2021 revenues that returned to hovering around pre-COVID-19 levels, driven by the acceleration of the Tod’s brand in the second half of the year and the strong growth of Roger Vivier, as well as a solid performance at retail and in Asia.
As reported, in the 12 months ended Dec. 31, revenues amounted to 883.8 million euros, up 38.7 percent compared with 637.1 million euros in 2020. Compared with 2019, sales were down 3.5 percent.
The group saw an acceleration in the last quarter of 2021, with sales climbing 9.6 percent compared with the same quarter in 2019. Compared to the last quarter of 2020, sales jumped 41.6 percent to 261.2 million euros.
Commenting on the performance, Tod’s chairman and chief executive officer Diego Della Valle said the sales performance “will allow our group to return to positive operating results already in fiscal-year 2021.”
In her report on Tuesday, Carole Madjo, luxury goods equity research at Barclays, stated the group’s expectations in terms of profitability beat consensus that “was expecting a loss of around 10 million euros,” and forecast a jump in the shares’ performance.
Flavio Cereda, equity analyst at Jefferies, wrote in his report that the expected return to positive operating results in 2021 was “a positive surprise” and implied “second half profitability above 2019 levels.”
In 2021, the group’s business in Greater China was very solid and revenues totaled 313.4 million euros, up 58.2 percent on 2020 and up 45.9 percent on 2019.
The Asia and Rest of the World region recorded an “excellent” fourth quarter, said the company, driven by the significant improvement in results of Japan and Korea, where revenues largely exceeded 2019 figures in the fourth quarter. The region reported revenues of 118.2 million euros, gaining 30.2 percent on 2020 and decreasing 6.8 percent on 2019.
Revenues from the direct channel totaled 659.4 million euros last year, up 3.1 percent compared to 2019 and representing about 75 percent of the total. Compared with 2020, retail sales grew 47.4 percent. The company cited strong local demand, also driven by local marketing initiatives and pop-up stores.
This story was reported by WWD and originally appeared on WWD.com.