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Tod’s Sales Up 9.7 Percent

Footwear, Italy drives increase.

MILAN — Tod’s SpA on Wednesday reported a 9.7 percent increase in first-half revenues, with momentum in its core category of shoes as well as its main market, Italy.

The Italian company, which owns the Tod’s, Hogan, Fay and Roger Vivier brands, posted preliminary consolidated sales figures of 347 million euros, or $531.1 million at average exchange, in the first six months of this year. Stripping out the effects of currency, revenues gained 12.2 percent.

Tod’s chairman and chief executive officer Diego Della Valle called the numbers “remarkable, considering the challenging environment.” He added that he was “confident” the group would deliver “a sound performance, for both turnover and profit,” for the full year on the basis of “outstanding figures of the next fall-winter order backlog.”
By brand, sales of the Tod’s label edged up 3.9 percent to 180.8 million euros, or $276.7 million; Hogan jumped 23.5 percent to 117.1 million euros, or $179.2 million; Fay edged up 0.4 percent to 38.8 million euros, or $59.4 million, and Roger Vivier gained 26.9 percent to 9.1 million euros, or $13.9 million.

By product, shoes, as usual, delivered the bulk of sales, gaining 15.3 percent to 242.2 million euros, or $370.7 million, while apparel revenues rose 6 percent to 39.1 million euros, or $59.8 million.

Sales of leather goods and accessories fell 5.2 percent to 65.4 million euros, or $100.1 million, in line with management expectations. Tod’s noted an improvement in the second quarter versus the first three months of the year. The company underlined that, while the Pashmy line of bags was starting to achieve “excellent” results, the performance of higher-priced leather bags was suffering from the economic downturn.

By geography, Italy continued to generate more than half the group’s revenues, the region gaining 17.3 percent to 182.1 million euros, or $278.7 million.

Sales in the rest of Europe gained 2.6 percent to 83.5 million euros, or $127.8 million, while revenues in Asia and the rest of the world increased 6.6 percent to 51.4 million euros, or $78.7 million, which the company attributed mainly to the “outstanding” results achieved in the Far East and Middle East, where Tod’s is developing its own distribution network.

In North America, sales fell 4.9 percent to 30 million euros, or $45.9 million, although at constant exchange, they gained 8.2 percent.

The figures were released after the close of trading in Milan, where Tod’s stock closed up 3.7 percent to 35.50 euros, or $55.73 at current exchange.