By  on August 26, 2009

MILAN — Tod’s SpA reported a 3 percent rise in first-half earnings and revenues on Wednesday and said it anticipated a positive second half, sending its share price to the highest level in more than 18 months.

For the six months through June 30, net profits at the Italian luxury shoe and leather firm, which owns the Tod’s, Hogan, Fay and Roger Vivier labels, increased 3.1 percent to 41.9 million euros, or $55.9 million, which beat analyst estimates. Consolidated sales increased 3.4 percent to 359 million euros, or $479.3 million, driven by Hogan and demand for shoes in Italy and Asia.

“The results confirm the right positioning of our brands and the strong appeal of our products’ quality and exclusivity,” Tod’s chairman and chief executive officer Diego Della Valle said. “Considering the results registered by our stores in the last few weeks, I’m confident also that the second half of the year will give us good results.”

Tod’s share price climbed 7 percent to 44.30 euros, or $66.37, at the close of trading in Milan.

Dollar figures were converted at average exchange rates for the periods to which they refer.

Earnings before interest, taxes, depreciation and amortization rose marginally to 77.8 million euros, or $103.8 million, from 77.6 million euros, or $103.6 million, in the same period last year.

As of June, the group’s net financial position was positive and equal to 100 million euros, or $143 million, almost double what it was at the same time last year.

Breaking down sales by brand, Hogan increased 12.6 percent to 131.9 million euros, or $176.1 million, while Tod’s and Fay dipped less than 1 percent each to 180.7 million euros, or $241.3 million, and 38.5 million euros, or $51.4 million, respectively. Roger Vivier sales declined 18.6 percent to 7.4 million euros, or $9.9 million.

By product, sales of shoes, the group’s core business, climbed 7.7 percent to 260.9 million euros, or $348.4 million, while apparel sales contracted 1.6 percent to 38.5 million euros, or $51.4 million. Sales of leather goods and accessories fell 9.5 percent to 59.2 million euros, or $79 million, although the company said the results “confirm signals of recovery, already shown in the last few months,” and highlighted “the great success of some iconic products under the Tod’s brand,” such as the lower priced G-Bag in fabric.

Sales grew 10.1 percent in Italy to 200.5 million euros, or $267.7 million, although in the rest of Europe they decreased 7 percent to 77.6 million euros, or $103.6 million. North American sales remained weak, dropping 23.6 percent to 22.9 million euros, or $30.6 million, which Tod’s attributed to the still difficult economic and financial environment. Sales in Asia and the rest of the world increased 12.7 percent to 58 million euros, or $77.4 million, with “outstanding results” in China, the company said.

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