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T O D ’ S S PA

BY GEOGRAPHIC REGION ■ Total sales in Tod’s “Home Country” – Italy – declined from 49% in 2006 to only ~30.5% in 2017. This is the result of both weak sales in Italy in recent years and significant international expansion.

■ Greater China (China, HK, Macao and Taiwan) was separated out in 2012 from Rest of the World

(“RoW”) in reporting as its store count grew. However, total sales in this market have been in decline since 2013. The region now accounts for 21.7% of total sales.

■ The US market - the world’s largest luxury market, only generates ~9.5% of total sales, and its revenue

growth has been slow: €60M in 2006 to €93M in 2017 (# of stores: 13 in 2006 to 25 in 2017). The US underperformance is glaring in our view and presents an opportunity for the future, given the quality and conservative positioning of the underlying products (and the fact that Diego Della Valle found the inspiration for the famous “Il Gommino” at a New York flea market in the late 1970s!).

TOTAL SALES (BY GEOGRAPHY) SINCE 2006 €1,200M

ITALY EUROPE NORTH AMERICA (BEFORE 2012) AMERICAS (AFTER 2012) GREATER CHINA ROW

€1,000M

Total Sales

€$800M

€$600M

€400M

€200M

€0M 2006

2007 2008

2009

2010 2011

2012

2013

2014 2015

2016

2017

TOTAL SALES (BY GEOGRAPHY) SINCE 2006 100%

ITALY EUROPE NORTH AMERICA (BEFORE 2012) AMERICAS (AFTER 2012) GREATER CHINA ROW

90% 80% As a % of Total Sales

70% 60% 50% 40% 30% 20% 10% 0% 2006

2007 2008

2009

2010 2011

2012

2013

2014 2015

2016

2017

Source: Tod’s SpA Annual Reports

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Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018