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KEY OPPORTUNITIES (3) Consolidating & Extending International Network Across Brands

■ Tod’s international presence is not balanced. The core Tod’s brand is under-represented in Europe (outside of Italy) and the US. Hogan offers expansion opportunities globally as does balanced development of Roger Vivier.

■ USA

The world’s largest luxury market only generates ~9.6% of total sales currently. Management acknowledged that the Tod’s brand was regarded by US customers as a casual brand that is a bit too expensive. Therefore, market re/positioning and marketing will be the key to improve business performance in this critical market.

■ Greater China

The growth in sales in this region has been impressive until 2013, but have been in decline since then due partially to the anti-corruption/anti-graft campaign under Xi Jinping which began in 2012. However, we believe that a trend of repatriation of luxury spending in China will start to benefit Tod’s which already has 116 stores (DOS+Franchised) in the Greater China region. We are also pleased to see that Tod’s has recruited Liu Shishi, the famous Chinese actress to promote the Tod’s brand within the Chinese market.

■ Rest-of-the-World / South America

We also believe there are growth opportunities in these regions that currently are operated mostly under the franchise model. 16

Liu Shishi showcased Tod’s Autumn/ Winter 2017-18 Collection

2017 ANNUAL REPORT

2017 ANNUAL REPORT

DISTRIBUTION NETWORK AS OF DECEMBER 31ST, 2017

REST OF THE WORLD

116

Tod’s stores around the world (D = DOS, F = Franchised Stores)*

D

DOS, 2017 NEW OPENINGS

16 EUROPE Barcellona Vienna Serravalle Rome Rome Berlin GREATER CHINA Tianjin Nanjing Shanghai Shenyang Beijing AMERICHE San Francisco Boston REST OF THE WORLD Seoul Daegu Fukuoka

AMERICAS

25 (Spain) (Austria) (Italia) (Italy) (Italy) (Germany)

D USA

FRANCHISED STORES, 2017 NEW OPENINGS

(China) (China) (China) (China) (China) (USA) (USA) (Korea) (Korea) (Japan)

EUROPE

130

F

22

-

BRAZIL

-

2

PANAMA

-

1

-

BAHRAIN

-

2

U.A.E.

-

8

3

KUWAIT

-

3

LEBANON

-

2

QATAR

-

JAPAN

35

1

KOREA

23

12

PHILIPPINES

-

2

INDIA

2

-

INDONESIA

-

5

MALAYSIA

-

3

SINGAPORE

3

1

THAILAND

-

4

GUAM

-

AZERBAIJAN

-

1

AUSTRALIA

-

3

KAZAKISTAN

-

1

1

1

12 D

F

48

2

EUROPE Prague (Czech Republic) Istanbul (Turkey)

ITALY BELGIUM

1

-

REST OF THE WORLD Seoul Seoul Seoul Kuwait City

FRANCE

21

1

GERMANY

12

3

GREAT BRITAIN

6

1

GREECE

-

2

NETHERLANDS

4

-

PORTUGAL

-

1

(Korea) (Korea) (Korea) (Kuwait)

GREATER CHINA JinHan Changchun Kunming Harbin

(China) (China) (China) (China)

AMERICAS San Paolo San Paolo

(Brazil) (Brazil)

RUSSIA D = DOS F = FRANCHISED STORE

-

3

SPAIN

9

1

SWITZERLAND

4

-

TURKEY

-

5

-

2

CZECH REPUBLIC

For a complete list of retail outlets operated by the DOS and franchising network, reference should be made to the corporate web site: www.todsgroup.com

REPORT ON OPERATIONS

422

F

SAUDI ARABIA

* Source: Tod’s SpA FY2017 Annual Report

DENMARK

1

-

AUSTRIA

2

1

GREATER CHINA

116 D

F

CHINA

65

10

HONG KONG

13

MACAU

4

4

TAIWAN

-

19

1

REPORT ON OPERATIONS

17

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018