Similar to other luxury brands, Tod’s Group sales in Hong Kong have been impacted by the changing demographic of mainland Chinese tourists and China’s anti-corruption campaign.
Tod’s Group, which includes flagship brand Tod’s, Roger Vivier, Hogan, and Fay, reported a 15 percent decline in China sales as traffic and spending at its stores have decreased.
China sales were estimated at 53.9 million euros, accounting for one-fifth of its total global sales of 257.7 million euros.
The company’s Chief Financial Officer Emilio Macellari told analysts in March that “the situation in China is still very tough, consumption there is not restarting at all.”
Rents in Hong Kong were noted as considerably high, but Tod’s will continue to expand in mainland China. The company will open new stores in Chongqing and Zhengzhou and a franchised store in Sanya this year.
The Group has 79 of its own shops in greater China, including 67 in the mainland, 11 in Hong Kong and one in Macau. It has another 25 franchised stores.
image credit: tod’s