By  on November 14, 2007

MILAN — Tod's SpA saw higher profits and sales in the first nine months of the year and forecast a bullish holiday season.

Net profits for the nine months ended Sept. 30 rose 8.9 percent to 57.3 million euros, or $76.8 million, the company said Tuesday. Sales for the period advanced 14.1 percent to 499.9 million euros, or $670 million. Revenue would have grown 16 percent at constant exchange rates, Tod's said. Dollar figures are at the average exchange rate.

"Based on the results achieved as of [Tuesday], we are confident that the Christmas season will be strong and, therefore, we confirm our expectations both in terms of sales and profit growth," Tod's chairman and chief executive officer Diego Della Valle said in a statement. "On the back of the excellent orders for the spring-summer 2008 collections, in all regions and in all product categories, we are confident to achieve very good results also in the next year."

Tod's said same-store sales advanced 13.5 percent, showing an acceleration from the 10.8 percent growth posted in the first half of the year. Same-store sales "posted a further increase" in October on the strength of the fall-winter 2007-2008 collections, Tod's said.

Earnings before interest and taxes for the nine-month period rose 6.7 percent to 95.7 million euros, or $128.2 million.

The company experienced growth in all markets and product categories including shoes, leather goods and apparel. Tod's revenue advanced 6.8 percent to 267.9 million euros, or $359 million, while Hogan climbed 23.5 percent to 147.1 million euros, or $197.1 million.

The group's smaller niche brands also thrived. Revenue at apparel brand Fay increased 12.6 percent to 69.9 million euros, or $93.7 million, while sales at luxury shoemaker Roger Vivier more than doubled to 12.2 million euros, or $16.4 million.

Geographically, sales in Italy, the company's biggest market, rose 18.8 percent to 252 million euros, or $337.7 million. Revenue in other European countries increased 10.4 percent to 128.9 million euros, or $172.7 million.

A strong euro bit into sales growth in the United States and Asia. Tod's noted that revenue in the U.S. advanced 10.3 percent to 47.4 million euros, or $63.5 million, but would have grown as much as 19 percent at constant exchange rates."In line with management expectations, the U.S. market posted a strong acceleration of its growth in the last months," the company said.

Sales in Asia and the rest of the world were 71.6 million euros, or $95.9 million, up 7.9 percent or 15.2 percent at constant exchange rates.

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