Sales at Italian luxury group Tod's fell 3.4 percent to 498 million euros for the first half of 2016, according to the company's second quarter financial statement released today. Same store sales at constant exchange rates were down 14.3 percent in the first six months of the year.

Sales of the Tod's brand fell by 7.2 percent in the semester, dragged by a sharp downturn in tourism spending in both Europe and the United States

Revenue was down in all markets, with Greater China dropping 9.5 percent

The leather and accessories category fell the most in the first half of the year, down over 10 percent year-on-year

Chief Executive Diego Della Valle said the group was pressing on with a development plan and that cost rationalisation was proving successful. Della Valle added the company's primary goal was to improve organic growth but did not give indication whether it is on track to meet market growth expectations

"Tod's continues to suffer in its core business, and doesn't seem to have found the way of kick-starting sales," said Exane BNP Paribas analyst Luca Solca. Solca added that the "luxury market is prizing those who innovate or those that keep desirability high, and Tod's doesn't belong to either group"

 In May CFO Emilio Macellari said an analyst consensus of 4 percent increase in full-year revenue would be "challenging but not impossible to reach."