MILAN — Boosted by the performance of its footwear division and a good Christmas season, Tod’s SpA reported a 7.7 percent increase in 2008 sales to 707.5 million euros, or $1.04 billion at average exchange. This result was achieved despite sluggish leather goods sales and a slowdown in the U.S. market.
This story first appeared in the February 2, 2009 issue of WWD. Subscribe Today.
“The latest period of the year contributed in achieving the positive sales results released today,” said Diego Della Valle, chairman and chief executive officer of the group. “Thanks to the efficiency of our group’s structure, I believe that these results will be reflected in sound net income growth.”
The company said that, at constant exchange rates, sales would have risen 9 percent.
The Tod’s brand confirmed its status as the group’s cash cow last year, with revenues of 356.6 million euros, or $524.2 million, up 2.6 percent compared to the previous year.
Hogan posted a 19.6 percent increase, reaching sales of 238.7 million euros, or $350.8 million. Apparel brand Fay grew 3.7 percent to 93.3 million euros, or $137.1 million. The Roger Vivier brand registered revenues of 16.8 million euros, or $24.6 million, up 5 percent.
Footwear again proved to be the group’s leading category, with sales growing 13.7 percent to 485.6 million euros, or $713.8 million. The leather goods and accessories division posted a 9.1 percent decline in revenues, however, to 126.6 million euros, or $186.1 million. Apparel grew 5.9 percent to 94.5 million euros, or $138.9 million.
Geographically, the U.S. market was the only one that suffered, especially in the last few months of the year, “in line with expectations,” said the company. Sales in North America dropped 10.7 percent to 59.1 million euros, or $86.8 million. At constant exchange rates, sales would have declined 3.3 percent. Italy posted a 15.2 percent increase in sales to 384.1 million euros, or $564.6 million. The rest of Europe was in line with the previous year, inching up 0.1 percent to revenues of 161 million euros, or $236.6 million. Sales in Asia and the rest of the world grew 7.1 percent to 103.3 million euros, or $151.8 million.
Revenues through directly operated stores grew 5.5 percent to 335.6 million euros, or $493.3 million, both organically and via the opening of 25 stores, including three units in India (in New Delhi, Mumbai and Bangalore) and 17 in China. In Italy, Tod’s opened a flagship store in Rome, in Via Condotti, dedicated to women’s collections.
Della Valle said that 2009 “started with positive sales results, both in our stores and in the wholesale channel, thanks to the focus on quality, innovation and the exclusivity of our products, which are not fashion and, therefore, are more and more appreciated by our customers.”
The ceo concluded that, despite the current economic climate making it hard to predict financial performance, “I’m confident that our group will be able to achieve growth both in sales and profits in the current year.”
The company is expected to release full 2008 results, including profits, on March 24.