MILAN — A spike in the footwear and leather goods categories and gains across all geographic markets, led by Asia, lifted Tod’s SpA’s revenues and profitability in the first quarter ended March 31. Sales at the Italian luxury house rose 17.1 percent to 243.7 million euros, or $341.2 million, compared with the same period the previous year. The firm, which controls the Tod’s, Hogan, Fay and Roger Vivier brands, said earnings before interest, taxes, depreciation and amortization climbed 33.6 percent to 65.1 million euros, or $91.1 million, and earnings before interest and taxes surged 36.2 percent to 55.9 million euros, or $78.2 million.
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“I’m really satisfied with the outstanding Q1 results: sound sales growth, for all the brands, in all the product categories and across all the geographical areas, outstanding organic growth, huge improvement of operating profitability,” said chairman and chief executive officer Diego Della Valle. “Considering the same good results of the orders’ collection for the next fall-winter season, I believe that our group will deliver strong results also in the current year, confirming its huge growth potential, based on the high quality of products and the exclusivity of our brands, more and more appreciated by customers.”
The core Tod’s brand kicked off the year with 19.3 percent growth, totaling sales of 121.2 million euros, or $169.7 million, in the first quarter. Hogan gained 14.5 percent to 91.8 million euros, or $128.5 million, and Fay 9.5 percent to 23.9 million euros, or $33.4 million, mainly driven by the Italian market. Roger Vivier, which is still in a start-up phase, climbed 54.7 percent to 6.6 million euros, or $9.2 million. Dollar figures are converted at average exchange rates for the periods to which they refer.
Footwear continues to be the group’s driving force, and this category in the period posted a 16.2 percent increase, reaching sales of 181 million euros, or $253.2 million. Tod’s-branded handbags and accessories helped boost the group’s leather goods division, which grew 21.6 percent, reaching revenues of 34.6 million euros, or $48.4 million. Apparel sales rose 17.8 percent to 28 million euros, or $39.2 million.
Revenues gained in all markets around the world. Italy, the group’s main region, grew 15.5 percent, with sales of 140.5 million euros, or $196.7 million, and the rest of Europe gained 13.5 percent. While reducing the number of its independent clients, the U.S. market grew 5.3 percent to 12.2 million euros, or $17 million.
Revenues for the rest of the world area grew 32.9 percent, totaling 41.1 million euros, or $57.5 million. The company said it saw “excellent results” in Mainland China, Hong Kong and Macau. It also stated that “Japan is recovering vigorously and with tenacity,” following the earthquake, tsunami and nuclear crisis that hit the country in March.