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Tod's says China sales may drop 40% in Q2 but sticks to full-year goal

By Reuters

MILAN – Italian luxury shoe maker Tod’s sees current targets for 2022 sales and profitability as achievable despite a marked slowdown in China due to widespread COVID restrictions, finance chief Emilio Macellari said.

The current analyst consensus is for sales of around 970 million euros and a 5% EBIT margin.

“Our expectations are in line with this consensus,” Macellari told analysts.

He said that given the current situation in China, an analyst forecast for 40% decline in sales in the country for the second quarter was a possibility, even though that would depend on how long the current curbs last.

“All in all the slowdown in China is of course visible but will not jeopardise the performance of the company for the full year,” he said.