Tod’s store traffic, consumer spending declining

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The luxury shoes and leather goods manufacturer Tod’s is going through tough times in Macau and Hong Kong. According to the results of the Italian company for the first quarter of the year, sales have been weak in both Special Administrative Regions. The reasons behind the slowdown are ‘the general sharp decline of store traffic and consumer spending’. The results of the company aggregate the markets in Macau and Hong Kong with Mainland China and Taiwan. In respect to this, the region of Greater China recorded a 3.9 per cent year-on-year decline in sales during the first quarter of this year from 56.1 million euros (MOP488.5 million) to 53.9 million euros (MOP469.4 million). Overall, the sales of the group totalled 257.7 million euros (MOP2.24 billion), which represent an increase year-on-year of 1.5 per cent in relation to the first quarter of 2014, when sales generated 253.8 million euros (MOP2.21 billion). “The quarter’s results reflect a still challenging economic and monetary environment, with the persistent weakness of some important markets for luxury goods; in some parts of the world, they have been also influenced by the very bad weather conditions and by late deliveries of important products”, the Chairman and CEO of the Italian group, Diego Della Valle, explained. “The short term profitability has been temporarily impacted by the investments made in recent years, but we are confident we will recover it, or may even improve it, in a midterm perspective”, he added. Besides selling products of its own brand, Tod’s shops sell Hogan, Roger Vivier and Fay products. In Macau, the Group has one shop in The Venetian, while in Hong Kong it has 11 shops. J.S.F.