MILAN — Boosted by the performance of its footwear division and growth in Italy and Asia, Tod’s SpA last year posted a net profit of 85.7 million euros, or $119.1 million, up 3.5 percent compared with 2008. In 2009, sales inched up 0.8 percent to 713.1 million euros, or $991.2 million, up 0.8 percent compared with the previous year.
This story first appeared in the March 23, 2010 issue of WWD. Subscribe Today.
“These results are even more noteworthy if we consider the challenging environment where we operated and confirm the strength and effectiveness of our strategy,” said Diego Della Valle, the group’s chairman and chief executive officer.
Dollar figures are converted at average exchange rates for the periods to which they refer.
By label, Tod’s showed a 2.2 percent drop in sales to 348.8 million euros, or $484.8 million. The company noted this came despite the poor economy and was achieved “through a rigorous control of discount sales and a more and more selective wholesale distribution.”
Hogan sales rose 7.6 percent to 256.9 million euros, or $357 million. Last week, the company unveiled a tie-up with Karl Lagerfeld, who will design a one-off capsule collection of shoes, leather goods and ready-to-wear for Hogan that will be unveiled for spring 2011 and will be in stores in November. Hogan’s first flagship in Shanghai will open in the fall.
Revenues at apparel brand Fay declined 1.7 percent to 91.6 million euros, or $127.3 million, and sales at Roger Vivier fell 11 percent to 15 million euros, or $20.9 million.
Shoes, the group’s core business, continued to grow, with sales rising 4.2 percent to 506.1 million euros, or $703.4 million, accounting for 71 percent of revenues, while leather goods and accessories showed a 12 percent drop to 111.4 million euros, or $154.8 million, accounting for 15.6 percent of sales. Sales of apparel inched up 0.5 percent to 95 million euros, or $132 million.
Geographically, sales in Italy, the group’s main market, gained 5.5 percent to 405.1 million euros, or $563 million, while in Europe, excluding Italy, they fell 6.4 percent to 150.7 million euros, or $211.4 million. Revenues in North America declined 21.7 percent to 46.4 million euros, or $64.4 million, accounting for 6.5 percent of sales. The group was especially pleased with strong results in the rest of the world, particularly in China. This area and Asia saw sales rise 7.5 percent to 110.9 million euros, or $154.1 million.