Page 398

TOTAL SALES VERSUS NUMBER OF STORES ■ At the end of 2017, the Company had 387 stores (275 Direct-Owned-Stores, 112 Franchised Stores). ■ Putting aside macroeconomics, the Company has really underperformed with its product portfolio as aggressive footprint expansion across brands did not translate into an increase in sales.

■ Aggressive footprint expansion in Greater China is the reason that the region accounts for 30.0% of store count, but only 22.0% of total sales.

■ We believe the recent trend of repatriation of luxury spending and reduced pricing differentials in China should ease the situation, but clearly product/collection performance and marketing have to improve.

TOTAL # OF STORE SINCE 2006 $1,200M

400

$1,000M

300 $800M

250 200

$600M

150

$400M

100 $200M

50 0

398

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

DOS-Europe

DOS-USA/Americas

DOS-Asia/Greater China

DOS-RoW

Franchise-Europe

Franchise-USA/Americas

Franchise-Asia/Greater China

Franchise-RoW

Annual Total Sales

Source: Tod’s SpA Annual Reports

2016

2017

$0M

Total Sales (€ M)

Total # of Stores

350

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018