Sales at Italian fashion group Tod’s rose almost 40 percent in the first nine months of the year, beating market expectations, after a 15 percent third-quarter increase driven by China and the United States.

Overall revenues in the January-to-September period were still 6.9 percent below 2019 pre-coronavirus levels, but in the third quarter they surpassed pre-epidemic levels, the Italian luxury leather goods maker said on Wednesday.

Last year, the pandemic triggered a revenue drop of almost 33 percent for Tod’s, making it among the worst performers in the luxury industry. It marked the fifth year in a row of falling annual sales for the group known for its loafers.

“We are particularly pleased to see that, in the quarter, retail revenues exceeded the values of 2019 and that the month of October is confirming this acceleration in sales results,” Chairman Diego Della Valle, the largest shareholder, said in a statement, citing confidence in improving profitability.

Sales rose to 224.3 million euros ($259 million) in the quarter, above the consensus analyst forecast of 207 million euros in a Refinitiv survey and compared with 223 million euros in the same period in 2019.

Former chief executive and managing director Umberto Macchi Di Cellere had left the company as of Wednesday. Last month, Tod’s said he would be succeeded by former Dior executive Simona Cattaneo as director general. Cattaneo also had worked at L’Oréal and Burberry.

The CEO role will be assumed by Chairman Diego Della Valle and Deputy Chairman Andrea Della Valle, who are brothers, to speed up Tod’s decision-making process, the company said at the time.

By Claudia Cristoferi; Editing by Richard Chang

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