By  on November 14, 2006

MILAN — Tod's SpA saw double-digit profit and revenue growth in the first nine months of the year despite a dip in sales at its niche apparel label, Fay.

Net profits for the nine months ended Sept. 30 rose 20.2 percent to 52.6 million euros, or $67.3 million. Sales advanced 10.7 percent to 438.3 million euros, or $561.02 million. The company said same-store sales were up 6.9 percent in the period.

Earnings before interest and taxes spiked 22.7 percent to 89.7 million euros, or $114.8 million.

Dollar figures have been converted from the euro at average exchange rates for the period to which they refer.

"The results released today are in line with our expectations and confirm the continuous and sound growth of our group," Tod's chairman and chief executive officer Diego Della Valle said in a statement, noting a backlog of spring-summer orders. "I'm therefore confident in the group's ability to achieve its targets for the current year and to continue to post significant growth rates in sales and profits also over the next years."

Sales growth registered in the double digits for the mainstay Tod's and Hogan brands. Revenue at Tod's rose 13.8 percent to 250.8 million euros, or $321.02 million, while that at Hogan climbed 19 percent to 119 million euros, or $152.3 million.

The company blamed a shift in Fay's production and delivery schedule for its 5 percent slide in sales to 62.1 million euros, or $79.5 million. Tod's said Fay's sales through October exceeded that of the equivalent 10-month period in 2005, but the company did not provide a sales figure.

Footwear brand Roger Vivier saw its revenue climb 55.2 percent to 4.8 million euros, or $6.1 million.

Geographically, the numbers show slower growth trends in Italy, North America and Asia than those posted in the first six months of the year.

Sales in Italy, Tod's single largest market, rose 9.7 percent to 212.2 million euros, or $271.6 million. Revenue in North America advanced 5.6 percent to 43 million euros, or $55.04 million. Revenue from Asia and other countries leaped 30.2 percent to 66.4 million euros, or $84.9 million.

On the upside, sales momentum in European countries excluding Italy picked up in the third quarter. Sales in those countries increased 5.4 percent to 116.7 million euros, or $149.4 million, in the nine-month period.In terms of products, sales of shoes rose 10.6 percent to 276.9 million euros, or $354.4 million, while those of leather goods and accessories advanced 24.1 percent to 100.7 million euros, or $128.9 million.

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