MILAN — Lifted by strong sales in Asia and the U.S. and growth of its Tod’s brand, Tod’s SpA said revenues in the first three months of the year gained 8 percent to 263.2 million euros, or $344.8 million, compared with 243.7 million euros, or $341.2 million, in the same period last year.
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The Italian luxury goods firm did not report net profits for the quarter ended March 31, but said earnings before interest, taxes, depreciation and amortization rose 2.4 percent to 66.7 million euros, or $87.3 million, compared with 65.1 million euros, or $91.1 million, last year.
Operating profit climbed 2.4 percent to 57.3 million euros, or $75 million. The group controls the Tod’s, Hogan, Fay and Roger Vivier labels.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
Chairman and chief executive officer Diego Della Valle highlighted the expansion of business in Asia and the U.S., where development “continues with great success, with excellent, double-digit growth rates.” As part of the group’s strategy, “taking into account the situation of the domestic market,” distribution in Italy has become “even more selective, to preserve even more the positioning and exclusivity of brands.” Della Valle concluded that “based on positive results in stores and the performance of winter orders,” he was “convinced [the] group will post also in 2012 a significant growth of revenues and profits.”
Sales of the Tod’s brand rose 13.4 percent to 137.5 million euros, or $180.1 million, while those of Hogan dropped 2.4 percent to 89.6 million euros, or $117.3 million — a decrease the company attributed to more selective distribution. For the same reasons, Tod’s said, Fay saw a 4 percent drop in sales to 23 million euros, or $30.1 million. The Roger Vivier brand almost doubled sales to 12.9 million euros, or $16.9 million, from 6.6 million euros, or $9.2 million, last year.
By product category, sales of footwear rose 8.3 percent to 195.9 million euros, or $256.6 million. Leather goods, comprising handbags and accessories, driven by the “excellent” results of the Tod’s brand, gained 15.3 percent to 39.9 million euros, or $52.2 million. Reflecting the performance of Fay, apparel sales dropped 3 percent to 27.2 million euros, or $35.6 million.
In the first quarter, sales in Italy dropped 4 percent to 134.9 million euros, or $176.7 million, while the rest of Europe rose 5 percent to 52.4 million euros, or $68.6 million. Sales in the U.S. climbed 21.2 percent to 14.8 million euros, or $19.4 million. The rest of the world grew 48.7 percent to 61.1 million euros, or $80 million, boosted by “excellent results” in China, Hong Kong and Macau, and a significant growth in Japan.
Tod’s also revealed the incorporation of 100 percent of Formapura Srl, the creative agency that provides integrated marketing, branding and advertising.
On Thursday, Tod’s shares closed down 1.94 percent to 80.95 euros, or $105 at current exchange.