Nightmare start to the week for the stock market Tod’s, which at 16.30 loses 10,89%, to 63,80 euros.
The sales on the shares of the fashion company were triggered by the numbers of first quarter, closed with a group turnover of 238,5 million, down 4,4% on the year. At constant exchange rates, the revenues they would amount to 237,1 million (-5%). The consensus of analysts was expecting a decline of 2%.
"The sharp decline in Italy is mainly due to the wholesale channel and also reflects the company's conservative approach to credit risk, typical of third-party channels", commented the analysts of Banca Akros, underlining that the most suffering brands on the Italian market are Tod's and Hogan.
As for the other markets, the same broker points out that the American continent is the one to have suffered the most both in the retail and wholesale channels. Equita also highlights how the retail channel moved within expectations (-3% on a like-for-like basis) while footwear underperformed.
In commenting on the quarterly accounts, the same president and CEO XNUMX Diego Della Valle he highlighted "the weakness of the wholesale channel, also due to the prudent attitude taken in some countries, in the management of credit risk" and the intention to "complete the investments necessary to face the important changes underway" in the sector: l The focus is on strengthening the management team, with the inclusion of some important figures, especially in communication and digital.
The quarterly performance has led Tod's management, according to what analysts indicate, to define the consensus for the whole of 2017 as "challenging". In the wake of the accounts, Exane judged the Tod's stock “undeperform”, while Kepler has switched to "reduce". Equity, which already had a "reduce" recommendation, lowered the price target to 62 euros. Akros it remained on “neutral” with a target of 59 euros.
