May 9, 2018 / 7:05 PM / in 2 months

Italy Tod's expects sales to turn positive in second half of year

May 9 (Reuters) - Italian luxury group Tod’s like-for-like sales should improve in the second quarter of the year and turn positive starting from the second half, its Chief Financial Officer Emilio Macellari said on Wednesday.

The CFO told analysts in a conference call after first-quarter sales that he was not worried by first-quarter like-for-like sales, which saw a decline of 4.4 percent year on year.

Macellari said he was hoping that like-for-like sales would turn positive already in the second quarter.

He also said in a company’s statement on Wednesday that first quarter sales were in line with the company’s expectations as the impact of the new business model was not visible yet.

The CFO said earlier in January that results from the company’s new management team would be visible starting from the second part of the year.

“If the new strategic plan implementation continues according to our expectations, we can achieve excellent results in a reasonable timeframe” added the CFO in the statement.

He reiterated that the company was focused on generating growth in the mid-term.

First quarter sales fell by 5.2 percent to 226.1 million euros ($268.13 million) at reported rates, a decrease of 1.8 percent at constant rates.

Weather and merchandising mix were among the drags, as less-profitable small bags are currently the ones which sell the most, according to Macellari, and shoes from Tod’s, which is known for its Gommino loafers, are more suited for the summer.

Regarding the company’s plans to offer multiple collections throughout the year, the CFO added that the company will probably launch new products every two months.

The new strategy, dubbed “Factory”, will aim at launching several collections throughout the year to better engage with its customers, with a focus on the company’s more classic items.

The move, announced in February, follows the footsteps of Italian outerwear maker Moncler, which bid farewell to the catwalk in February to focus on monthly launches of new products. ($1 = 0.8432 euros) (Reporting by Silvia Recchimuzzi in Gdynia)

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