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Tod’s Profits Rise in First Half

Tod's CEO Diego Della Valle predicts even stronger results in the second half.

MILAN — Tod’s SpA said Thursday that net profits in the six months ended June 30 rose 21.6 percent to 52.4 million euros, or $69.7 million at average exchange, compared with the same period last year, driven by gains in its core footwear business and in all markets globally.

As reported at the end of July, revenues in the first half grew 5.2 percent to 377.5 million euros, or $502 million at average exchange, boosted by an acceleration in the second quarter, when sales climbed 7.4 percent.

Chairman and chief executive officer Diego Della Valle said the first six months of the year “delivered excellent results, in line with our expectations: acceleration of the sales growth, with a strong predominance of full-price sales versus promotional ones, [and] significant increase of the operating profitability.”

Della Valle went on to predict even stronger results in the second half.

By label, the Tod’s brand saw sales rise 8.4 percent to 195.9 million euros, or $260 million, accounting for more than half of group revenues. Hogan sales grew 4.2 percent to 137.5 million euros, or $182.8 million. Apparel brand Fay showed an 11 percent decline to 34.3 million euros, or $45.6 million, affected by a different timing in spring-summer deliveries. Sales of Roger Vivier rose 28.3 percent to 9.5 million euros, or $12.6 million. However, the company said that over the next few seasons, “the brand will remain focused on consolidating its exclusivity and prestige; therefore, the analysis of the sales trends is not fully meaningful.”

Dollar figures are converted at average exchange rates for the periods to which they refer.

In the first six months of the year, the group invested 16.1 million euros, or $21.4 million, compared with 21.3 million euros, or $29.6 million, in all of 2009, mainly related to the expansion and refurbishment of its DOS network. These include openings in Asia, the enlargement of the Tod’s boutique in Munich and the complete refurbishment of the Tod’s store on Rodeo Drive in Los Angeles.

As of June 30, the company’s net cash position totaled 200.3 million euros, or $266.4 million.