MILAN — Italy’s Tod’s SpA on Wednesday reported single-digit gains in first-quarter profits and revenues, driven by sales of the Hogan brand and demand for shoes, and confirmed its targets for the full year.
This story first appeared in the May 14, 2009 issue of WWD. Subscribe Today.
For the three months through March 31, the luxury shoe and leather goods firm, which also owns the Tod’s, Fay and Roger Vivier labels, said operating profits gained 1.8 percent to 37.9 million euros, or $49.6 million, on revenues that increased 5.4 percent to 201.3 million euros, or $263.3 million. At constant exchange, revenues gained 4.9 percent.
Earnings before interest, taxes, depreciation and amortization rose 4.4 percent to 45.7 million euros, or $59.8 million. As of March 31, the group’s net financial position was positive and equal to 56.4 million euros, or $74.5 million, compared with 53.5 million euros, or $84.5 million, at the same point last year.
Dollar figures were converted at average exchange rates for the periods to which they refer.
Chairman and chief executive officer Diego Della Valle said the final results of fall-winter orders were “positive,” despite the difficult trading environment.
“Therefore, [although] visibility remains low, I can confirm the group’s objectives to consolidate market shares and profitability,” Della Valle stated.
Breaking down sales by brand, Tod’s improved marginally to 97.5 million euros, or $127.5 million; Hogan increased 17.5 percent to 74.5 million euros, or $97.5 million, and Fay gained 2.7 percent to 25.2 million euros, or $33 million. Roger Vivier sales suffered, declining 22.8 percent to 3.9 million euros, or $5.1 million.
By product, sales of shoes climbed 11 percent to 144.7 million euros, or $189.3 million, while apparel sales rose 2.2 percent to 24.8 million euros, or $32.44 million. Sales of leather goods and accessories declined 12.4 percent to 31.6 million euros, or $41.3 million, although Tod’s noted the number of units sold during the quarter was broadly in line with the first three months of 2008.
By region, sales fell in all markets except Italy, where they gained 16.2 percent to 116.5 million euros, or $152.4 million. Sales contracted 4.8 percent in the rest of Europe, 21.6 percent in North America, and 1.9 percent in Asia and the rest of the world.
Tod’s share price fell 1.5 percent to 38.08 euros, or $51.87, by the close of trading in Milan.