MILAN — Posting a surge in earnings and sales in the first nine months of the year, Italian luxury shoe and leather group Tod’s SpA said Thursday it expects the momentum to continue for the remainder of the year.
This story first appeared in the November 12, 2010 issue of WWD. Subscribe Today.
Sales across all categories and markets helped lift Tod’s earnings before interest, taxes, depreciation and amortization 20.4 percent to 157.4 million euros, or $207.7 million. Consolidated sales rose 8.9 percent to 609.1 million euros, or $804 million, in the nine months ended Sept. 30, compared with the same period last year. In particular, Tod’s registered 15.5 percent growth in the third quarter, driven by the success of the fall season.
Dollar figures are converted at average exchange rates for the periods to which they refer.
Chairman and chief executive officer Diego Della Valle said he was “confident that the fourth quarter of 2010 could give us good results and, consequently, our full year figures should be really positive.” Based on strong results from the spring 2011 collections, Della Valle said he believed the group “will be able to deliver excellent results also next year.”
In the nine months, sales of the Tod’s brand rose 13.7 percent to 310.4 million euros, or $409.7 million. In the third quarter of 2010, revenues grew 24 percent. Hogan sales grew 6 percent, while apparel label Fay edged down 3.5 percent. However, the company said Fay revenues gained 4.4 percent in the third quarter, with a strong improvement compared with the first half of the year. The Roger Vivier brand showed a 26.6 percent increase in the first nine months of the year.
Shoes remain the group’s core business, as the category showed 11.2 percent growth in the nine months to 440.1 million euros, or $580.9 million, and a 16.8 percent increase in the third quarter. Revenues from leather goods and accessories rose 3.3 percent and showed a 16 percent increase in the third quarter. The apparel division posted a 3.4 percent gain in the nine months and 10.5 percent growth in the third quarter.
Sales in Italy grew 5.4 percent in the nine months, and 11.8 percent in the quarter. The rest of Europe showed a 9.5 percent increase in the nine months and a 20.5 percent rise in the third quarter. Sales in the U.S. grew 12 percent in the period and 13.5 percent in the third quarter. Asia and the rest of the world posted 19.7 percent growth, led by China, Hong Kong and Taiwan. The region showed a 25.1 percent surge in the third quarter.
In the first nine months of 2010, the group invested a total of 21.7 million euros, or $28.6 million, compared with 16 million euros, or $21.7 million, in the same period last year, mainly devoted to the distribution network, for the opening and refurbishment of directly operated stores.
As of September 30th, the group’s net financial position was positive, standing at 187.8 million euros, or $247.9 million, compared with 106.3 million euros, or $144.5 million at the end of September last year.
Tod’s shares on the Milan Stock Exchange rose 1.1 percent to 75.01 euros, or $103.20 at current exchange.