MILAN — Tod’s saw its 2004 profits and sales grow as it bolstered its distribution network and kept costs in line.
Net profit for the 12 months ended Dec. 31 grew 18.9 percent to 30.6 million euros, or $37.9 million. Revenue for the period advanced 12.9 percent to 425.4 million euros, or $527.5 million, but the company said it would have risen 15.1 percent at constant-currency rates. Dollar figures are at the average exchange rate.
“The full-year 2004 showed the return to growth of operating margins and net income, in line with the group’s plans and strategy,” Diego Della Valle, Tod’s chairman and chief executive officer, said in a statement.
He said that, based on sales figures for the first months of this year, he forecasts full-year 2005 growth “in line” with that of 2004 and a “further improvement” in profitability.
Tod’s opened 11 stores in 2004, including the Omotesando flagship in Tokyo. Those shops brought the directly operated store count to 106 as of Dec. 31 and helped boost full-year revenue.
Still, older stores posted double-digit growth rates. Tod’s said that sales accelerated 10.9 percent on a same-store basis for directly operated stores. The company said that same-store sales in the first 12 weeks of this year are up 13 percent.
Earnings before interest and taxes advanced 23.7 percent to 54.1 million euros, or $67.1 million.
On a geographical basis, a strong euro-to-dollar exchange rate bit into North American sales, which dropped 5.6 percent to 50.1 million euros, or $62.1 million. Tod’s said that sales there would have grown 4 percent at constant rates.
Sales in Italy, Tod’s largest market, grew 12.7 percent to 204.5 million euros, or $253.6 million, while those in the rest of Europe advanced 11.5 percent to 116.7 million euros, or $144.7 million.
Revenue from Asia and the rest of the world grew 53.9 percent to 49.5 million euros, or $61.4 million. Tod’s said it is seeing excellent growth in Asia, where sales would have increased 60 percent at constant exchange rates.
Turning to product categories, shoe sales advanced 12.7 percent to 268.2 million euros, or $332.6 million, while revenue from leather goods and accessories increased 21.1 percent to 84.7 million euros, or $105 million. Sales from apparel, a much smaller category for the firm, rose 6.2 percent to 67.2 million euros, or $83.3 million.
The Tod’s name generates more than half of the company’s consolidated sales. Sales from that brand grew 12.2 percent to 239.9 million euros, or $297.5 million, while those from Hogan rose 18 percent to 102.3 million euros, or $126.9 million. Fay revenue increased 5.9 percent to 68.7 million euros, or $85.2 million.