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Tod’s Sales Strong in First Half

MILAN — Tod’s saw double-digit revenue growth in the first half of the year on rising sales momentum of its Tod’s and Hogan brands, especially in its core European market.<BR><BR>Tod’s said preliminary sales for the six months...

MILAN — Tod’s saw double-digit revenue growth in the first half of the year on rising sales momentum of its Tod’s and Hogan brands, especially in its core European market.

Tod’s said preliminary sales for the six months ended June 30 rose 12.1 percent to 194.5 million euros, or $238.8 million, but would have grown 14.4 percent at constant exchange rates. Those figures indicate a much stronger second quarter for Tod’s since the company’s first-quarter sales rose only 1.7 percent. Final first-half numbers, including profits, are due in early September.

Dollar figures have been converted from the euro at the average exchange rates for the corresponding period.

Opening 14 stores helped boost first-half numbers but Tod’s stressed that a positive like-for-like growth trend also helped the company in the first six months of the year. The company said it averaged 10 percent sales growth per store for the 71 directly operated boutiques opened before Jan. 1, 2003.

“These sale figures allow us to fully confirm our growth potential in the medium and long term,” Tod’s chairman and ceo Diego Della Valle said in a statement, adding that he foresees “a meaningful increase of revenues for the year under way together with an improvement in profitability.”

Breaking down first-half sales by brand, Tod’s revenue rose 12.2 percent to 115.7 million euros, or $142.1 million, while that of Hogan grew 14.3 percent to 50.2 million euros, or $61.6 million. Sales at apparel brand Fay dropped 1.1 percent to 23.8 million euros, or $29.2 million, but the company cited difficult comps for the brand as Fay revenue jumped 51.3 percent in the first half of 2003.

Six-month sales in Italy rose 8.2 percent to 89.2 million euros, or $109.5 million, while those in the rest of Europe advanced 9.4 percent to 56.2 million euros, or $69 million.

A strong euro to dollar exchange rate bit into North American sales, which dropped 2.5 percent to 24.9 million euros, or $30.6 million. Tod’s said it would have risen 8.4 percent at constant exchange rates. Revenue from Asia and the rest of the world increased 71.9 percent to 24.2 million euros, or $29.7 million.

— Amanda Kaiser