Tod's swings to operating loss in first half due to COVID crisis

Tod's swung to an operating loss in the first half of this year after a 44% sales drop due to the coronavirus crisis, which forced luxury goods brands to temporarily shut stores across the world and idle manufacturing sites.

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The full-year results will be also affected by the pandemic despite recent signs of recovery in China, the group said on Tuesday, adding that it was too early to quantify the impact of the emergency.

Revenue at the Italian company, famous for its Gommino loafers, fell to 256.9 million euros ($302.89 million) in the six months through June, in line with analysts estimates of 255 million euros, according to a Refinitiv consensus.

In the second quarter alone, the worst affected by the crisis, sales fell 56.3%.

"The second quarter was worse than the first one, since almost all the stores were closed for most of the period", Tod's founder and top shareholder Diego Della Valle said in a statement. "In the latest weeks, we are registering encouraging signs of recovery", particularly in China where the group is enjoying double-digit growth rates, he added. Europe and the Americas remain weak.

On an adjusted basis, the group posted a loss before interest and taxes (EBIT) of 64.1 million euros compared with an operating profit of 5.8 million in the first half of 2019.