MILAN — Tod's SpA saw a 36 percent jump in net profit for the first nine months of the year on the continued momentum of its Tod's and Hogan brands.
Net profit for the nine months ended Sept. 30 rose to 43.8 million euros, or $55.2 million. Sales advanced 19 percent to 395.9 million euros, or $498.8 million, but the company said they would have risen 20.4 percent at constant exchange rates.
"The results released today confirm the sound growth of revenues and of profitability, which testifies to the effectiveness of the group's strategy and of the consistent and progressive widening of our product offer," Tod's chairman and chief executive officer Diego Della Valle said in a statement. "Considering also the excellent acceptance given to the new projects now under launch, I confirm with complete optimism our expectations to achieve a significant growth ... for the current and [coming] years."
Earnings before interest and taxes increased 34 percent to 73.1 million euros, or $92.1 million.
Each of the group's brands saw a double-digit jump in sales for the nine months. Revenue from the core Tod's brand grew 18.9 percent to 220.4 million euros, or $277.7 million, accounting for more than half the company's turnover. Sales at Hogan advanced 21.3 percent to 100 million euros, or $126 million. Apparel brand Fay saw its revenue increase 15.8 percent to 65.4 million euros, or $82.4 million.
Shoes continue to be the largest product category for the company, generating 63.2 percent of the group's revenue. Footwear sales rose 17 percent to 250.4 million euros, or $315.5 million, while those of other leather goods increased 30.5 percent to 81.2 million euros, or $102.3 million. Apparel revenue grew 16 percent to 63.6 million euros, or $80.1 million.
As for geographic markets, sales in Italy grew 18.8 percent to 193.5 million euros, or $243.8 million, while revenue from other European countries advanced 17.5 percent to 110.7 million euros, or $139.5 million. Sales in North America grew 7.1 percent to 40.7 million euros, or $51.3 million, while those from Asia and other parts of the world grew 39.5 percent to 51 million euros, or $64.2 million.
Tod's said it invested 16.1 million euros, or $20.3 million, over the first nine months of the year, related to logistical updates, store refurbishments and the redesign of the New York flagship on Madison Avenue. It reopened last month.The firm specified that its like-for-like sales growth in its directly owned stores rose 12 percent in the first 43 weeks of the year through Oct. 31.
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