MILAN, (Reuters) – Sales at Italian fashion brand Tod’s rose 23% in Q1. This continues a recovery that began last year. Market expectations were exceeded despite a slowdown China in March.

In the same period revenues totalled 219.6 millions euros (or $2231.68 Million). The growth was driven by Europe and Americas while China saw a fresh round of COVID limitations.

The overall quarterly sales were slightly higher than the 2019 level, prior to the pandemic.

According to Equita, analysts had predicted sales of 212 million euros.

“While the effect of the war on Ukraine is being assessed, along with the signals from China regarding the COVID front, it’s important to continue developing each brand and making all necessary investments,” Diego Della Valle (largest shareholder) stated Wednesday.

A luxury leather goods company said that 30% of its China stores were currently shut down due to restrictions in Shanghai, and similar lockdowns. Analysts predict a 40 percent drop in Chinese revenue in the second quarter, as the curbs will hit heavily on the luxury sector in China.

Tod’s is known for its Gommino loafers. In late 2017, Tod’s launched a new strategy to revitalize its brands and attract younger customers. However, the recent health crisis has hindered its efforts. After five consecutive years of declines, group sales rebounded by nearly 40% in 2017.

($1 = 0.9479 euros)