2011 Half-year report - Tod's

TOD’S Group
2011 Half Year Financial Report
06.30.2011
Group’s activity
TOD’S Group operates in the luxury sector under its proprietary brands (TOD’S, HOGAN, and FAY)
and licensed brands (ROGER VIVIER). It actively creates, produces and distributes shoes, leather
goods and accessories, and apparel. The firm’s mission is to offer global customers top-quality
products that satisfy their functional requirements and aspirations.
Development of production. Group’s production structure is based on complete control of the
production process, from creation of the collectio ns to production and then distribution of the
products. This approach is considered key to assuring the prestige of its brands.
Shoes and leather goods are produced in Group -owned plants, with partial outsourcing to
specialized workshops. All of these ou tsourcers are located in areas with a strong tradition of
shoe and leather good production. This preference reflects the fact that an extremely high
standard of professional quality is required to make these items, with a significantly high level of
added value contributed to the final product by manual work.
The Group relies exclusively on selected specialized outsourcers, which enables it to exploit their
respective specializations in crafting the individual products sold as part of the apparel line.
Distribution structure. The prestige of Group’s brands and the high degree of specialization
necessary to offer the respective products to customers entails distribution through a network of
similarly specialized stores. Accordingly, the Group relies pr incipally on three channels: DOS
(directly operated stores), franchised retail outlets, and a series of selected, independent
multibrand stores. Group’s strategy is focused on development of the DOS and franchising
networks, given that these channels offer greater control and more faithful transmission of the
individual brands. It is also clear that, in particular market situations, distribution through
independent multibrand stores is more efficient. This channel is of key importance to the Group.
Group’s brands
The Tod’s brand is known for shoes and luxury leather goods, with styles that
have became icons of modern living. Tod’s is known in the luxury goods sector as a symbol of the
perfect combination of tradition, quality and modernity. Each product is hand-crafted with
highly-skilled techniques, intended, after laborious reworking, to become an exclusive,
recognisable, modern and practical object. Some styles, like the Driving Shoe and the D bag, are
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