MILAN — Tod’s SpA said Wednesday that 2009 consolidated revenues inched up 0.8 percent to 713.1 million euros, or $991.2 million, compared with the previous year, boosted by the performance of its footwear division and growth in Italy and Asia, but hit by a sluggish market in the rest of Europe and a slowdown in the U.S.
Diego Della Valle, chairman and chief executive officer of the group, said he was “extremely satisfied” with the company’s performance last year and particularly with its “high quality, which will be further positively reflected in the operating results.”
The company is expected to release full 2009 results, including profits, on March 24.
Della Valle said the group’s priorities were “good performance of sales; outstanding profitability; strengthening of our financial structure, and net cash position. I believe all these targets were achieved, in the light of our strategy to protect our brands’ prestige and exclusivity, in a scenario of high instability of the markets.”
By label, Tod’s showed a 2.2 percent drop in sales to 348.8 million euros, or $484.8 million at average exchange rates. The company noted this performance should be seen as consistent with its strategy to preserve “the brand’s integrity and the exclusivity of distribution.” Hogan sales rose 7.6 percent to 256.9 million euros, or $357 million; revenues at apparel brand Fay declined 1.7 percent to 91.6 million euros, or $127.3 million, and sales at Roger Vivier fell 11 percent to 15 million euros, or $20.9 million.
Shoes, the group’s core business, continued to grow, with sales rising 4.2 percent to 506.1 million euros, or $703.4 million, accounting for 71 percent of revenues, while leather goods and accessories showed a 12 percent drop to 111.4 million euros, or $154.8 million. “We are registering positive results from leather goods in our stores; nevertheless, sales figures were influenced also by the lower average price of some new iconic products, such as the G-Bag, made in fabric for the Tod’s brand,” said the company.
Geographically, sales in Italy gained 5.5 percent to 405.1 million euros, or $563 million, while in Europe, excluding Italy, they fell 6.4 percent to 150.7 million euros, or $211.4 million. Revenues in North America declined 21.7 percent to 46.4 million euros, or $64.4 million, accounting for 6.5 percent of sales. Asia and the rest of the world, China in particular, saw sales rise 7.5 percent to 110.9 million euros, or $154.1 million.
Revenues through directly owned stores grew 4 percent to 348.9 million euros, or $484.9 million, while sales through franchised stores and independent retailers dropped 2.1 percent to 364.2 million euros, or $506.2 million.