MILAN — Italian luxury shoe and leather goods group Tod's SpA said Friday earnings grew 17.8 percent in 2007 and forecast "good results" for the current year, despite a challenging economic environment.
Buoyed by strong demand for high-quality footwear in Italy and the rest of Europe, the company, which owns the Tod's, Hogan, Fay and Roger Vivier brands, reported net profits for the 12 months ended Dec. 31 of 78.7 million euros, or $107.9 million at average exchange, ahead of analysts' estimates.
Sales for the period gained 14.7 percent to 657.1 million euros, or $900.6 million at average exchange, while earnings before interest and taxes increased 11.2 percent to 126.5 million euros, or $173.4 million. The operating margin was roughly flat at 19.7 percent.
Tod's chairman and chief executive officer Diego Della Valle said the double-digit improvement in revenues and profits confirmed the group's resilience in tougher times and despite the strong euro.
In January, Della Valle cautioned profits would likely fall below company expectations due to a slowdown in retail sales and the underperformance of leather goods and accessories in the run-up to Christmas.
That led Goldman Sachs last month to downgrade the luxury group to "sell" over concerns "the lost momentum in leather goods will be difficult to regain quickly."
However, in Friday's statement, Della Valle underlined his optimism for the current year, citing a "good" start in all product categories for sales of spring collections and a "positive" response to fall collections.
"[These] allow us to expect good results also in 2008 both for sales and profits," he said.
Tod's added its dividend would remain unchanged at 1.25 euros, or $1.98, per share.
The company's stock closed up 1.53 percent to 39.17 euros, or $61.89, at the end of trading in Milan on Friday. However, it has lost more than 18 percent of its value this year.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast