Shares in Tod’s have taken a hit as the company reports a slowdown in sales for the first nine months of the year. This comes as the luxury sector experiences a normalization in growth trends.
At 0849 GMT on Thursday, shares were down 4.5% at EUR32.08.
According to research note by Citi analysts Thomas Chauvet and Lorenzo Bracco, Tod’s has experienced a more significant sequential sales slowdown compared to its peers.
The Italian luxury shoe and clothing company reported sales of 828.4 million euros ($886.4 million) for the first nine months of the year, a decrease from EUR724.9 million in the same period last year.
For the third quarter, sales reached EUR259.3 million, falling short of Visible Alpha consensus estimates of EUR264.3 million.
Greater China and domestic customers in Europe are the primary contributors to this sales slowdown, notes Equita analyst Paola Carboni.
To regain market share, Tod’s will need to make continued investments in retail, marketing, and personnel to support their Tod’s and Roger Vivier brands. Citi believes that these efforts could lead to a much brighter outlook in 2025.
This decline in Tod’s sales comes at a time when the luxury sector is normalizing, with concerns being raised about the overall tone of the industry after LVMH Moet Hennessy Louis Vuitton’s third-quarter results fell short of analysts’ expectations.
