MILAN — Continued growth of its Tod's brand and burgeoning business at its Hogan, Fay and Roger Vivier labels in all geographic markets helped boost Tod's SpA revenues by 15.7 percent in the first half.
Despite negative currency fluctuations, the luxury goods group said Monday that sales rose to 316.4 million euros, or $411.3 million at average exchange, compared with the same period in 2006. At constant exchange rate, sales would have grown 17.8 percent.
"Our group achieved excellent sales results in the semester, showing the expected acceleration as compared to the first months of the year," said Diego Della Valle, chairman and chief executive officer of the group, in a statement.
Della Valle said he was "particularly satisfied with the outstanding sales results" of both the group's retail and wholesale networks. The former contributed almost half of the group's revenues, accounting for 47.4 percent of sales, or 149.9 million euros ($194.8 million). Retail sales increased 11.9 percent compared with the same period in 2006.
Wholesale revenues grew 19.4 percent to 166.5 million euros, or $216.4 million. As of June 30, the group had 116 directly operated stores and 68 franchised units.
In the first half, sales of the Tod's brand rose 6 percent to 174.1 million euros, or $226.3 million. At constant exchange rates, Tod's sales would have grown 9 percent. The statement said "the impact from the currencies' fluctuations is higher for Tod's compared to the other brands of the group, given that it's the most international one."
Della Valle reiterated his expectations for Derek Lam, who was appointed Tod's creative director earlier this year. The executive said he viewed "the excellent preliminary sales figures" of Lam's collections for Tod's as "very important for our future results." Della Valle also underscored the relevance of the "Pashmy" bag, launched two seasons ago. The bag has rapidly become popular with celebrities such as Cameron Diaz, Drew Barrymore and Kate Winslet.
While Tod's remains the group's cash cow, Hogan is becoming increasingly significant, accounting for 30 percent of revenues. The brand had sales of 94.8 million euros, or $123.2 million, in the first six months of the year, a 25.7 percent hike compared with last year. Apparel brand Fay grew 30.6 percent, a performance the company attributed to "different timing of deliveries."Sales at the group's newest brand, Roger Vivier, shot up 161 percent, reaching 7.1 million euros, or $9.2 million. Vivier, under the creative direction of Bruno Frisoni, accounted for 2.3 percent of group revenues. The company said in the statement these figures showed "the huge potential of this prestigious and exclusive brand."
Footwear accounted for 66.4 percent of group sales and the category grew 17.7 percent to 210 million euros, or $273 million. Sales of leather goods and accessories grew 5.1 percent, reaching 69 million euros, or $89.7 million. The company said the category continued to be "particularly affected by the strengthening of the euro," with consequences in the American and Japanese markets. Sales of apparel grew 28.1 percent, reaching 36.9 million euros, or $47.9 million.
"Our strong growth testifies to the soundness of our medium long-term strategic business plan," said Della Valle.
Unlike some other luxury goods houses, the group touted a positive performance in Italy. The company said all brands achieved "excellent" results in the domestic market, where sales rose 23.1 percent to 155.2 million euros, or $201.7 million. Revenues grew 12.4 percent in the rest of Europe to 81.4 million euros, or $105.8 million, accounting for 26 percent of revenues.
Sales in the U.S. increased 6.9 percent. That market, which the company said "confirms its strong growth potential," accounted for 10 percent of sales, or 31.5 million euros ($40.9 million).
The Asian market accounted for 15 percent of sales, up 6.2 percent from the same period last year.
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