MILAN — Boosted by growth across brands and categories, in particular its footwear division, Tod’s SpA posted a 16.9 percent increase in net profits during the first half to 40.7 million euros, or $62.3 million, on a 9.7 percent rise in sales to 347 million euros, or $530.9 million.
Diego Della Valle, chairman and chief executive officer, described first-half sales as “outstanding.” Despite the challenging economic environment, Della Valle said the “effectiveness of the group’s strategy” allows the company to continuously improve its results and its operating profitability.
“Based on the total fall-winter orders backlog, I can confirm our expectations to achieve a good growth in revenues and profits in the full-year 2008,” said Della Valle.
Sales of the Tod’s brand grew 3.9 percent to 180.8 million euros, or $276.6 million, while revenues at Hogan grew 23.5 percent to 117.1 million euros, or $179.2 million. Apparel brand Fay was in line with last year’s performance in the first half, with sales amounting to 38.8 million euros, or $59.4 million. Sales of the Roger Vivier brand grew 26.9 percent to 9.1 million euros, or $13.9 million. The company said this growth was “outstanding,” although not entirely meaningful because the Vivier brand is still in a start-up phase.
The footwear category grew 15.3 percent to 242.2 million euros, or $370.6 million. Revenues from leather goods and accessories showed a 5.2 percent drop compared with the first half of last year, reaching 65.4 million euros, or $100.1 million. However, the company said that this division picked up compared with the first quarter of the year, showing a 0.7 percent drop in the first half compared with a 2.8 percent decline in the first quarter at constant exchange rates.
“While the Pashmy line of bags is starting to achieve good results, the performance of higher priced leather bags was more influenced by the still challenging macroeconomic environment,” the company said.
Apparel grew 6 percent in the first half, reaching 39.1 million euros, or $59.8 million.
Sales in Italy grew 17.3 percent to 182.1 million euros, or $278.6 million, representing the company’s main market. Sales in the U.S. showed a 4.9 percent drop to 30 million euros, or $45.9 million. At constant exchange, however, sales in North America would have grown 8.2 percent in the first half. Sales in the rest of the world totaled 51.4 million euros, or $78.6 million, up 6.6 percent at current exchange, or up 12.9 percent at constant exchange. The company attributed this growth to the “outstanding results” achieved in the Far and Middle East, markets that the group is focused on developing.
All currency conversions were made at average exchange rates for the period.
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.
@beyonce chose a custom gown by @falgunishanepeacockindia for mother @mstinalawson 's second annual Wearable Art Gala last night. The gown, which took 10 days to make, was inspired by Nubian warrior queen Amanishakheto. Reporting by @hernameislex . #wwdeye 👑 🐝#beyonce
After dressing @justintimberlake for his Super Bowl halftime performance last month, @stellamccartney has designed the star’s "Man of the Woods" tour wardrobe. Timberlake will be wearing a mix of pieces from McCartney’s fall men's collection as well as custom designs and items from his own closet. #wwdfashion