NEW YORK — Buoyed by double-digit sales increases from its Fay brand, Tod’s SpA reported a modest improvement in preliminary consolidated sales figures for 2003.
This story first appeared in the January 29, 2004 issue of WWD. Subscribe Today.
For the year, the Milan-based luxury goods company reported a 3.7 percent increase in sales to $469.3 million from $452.6 million in 2002. Dollar figures have been converted from the euro at current exchange rates. The company reported sales of 371.4 million euros compared with 358.2 million euros in 2002.
Not surprisingly, unfavorable currency exchange rates adversely impacted results. According to the company, assuming a constant exchange rate, sales would have reached $488.9 million, or 387 million euros.
The company’s Fay brand, which specializes in high-end casualwear, experienced the greatest growth, reporting a 24.5 percent increase to $82 million, or 64.9 million euros, from $65.8 million, or 52.1 million euros, a year ago. Revenues from Fay accounted for 17.5 percent of total sales.
Serving as the company’s foundation is the Tod’s shoe and luxury leather brand, which reported a 0.3 percent rise in sales to $270 million, or 213.7 million euros, from $269.2 million, or 213.1 million euros, in 2002. Tod’s revenues accounted for 57.6 percent of sales.
Although shoe sales, the company’s core product, declined in the low single digits for the year, they accounted for 64.1 percent of sales, coming in at $300.6 million, or 237.9 million euros. According to the company, a diminished impact from shoe sales was anticipated with a strategy to expand the company’s product range.
Leather goods and apparel grew 18.6 percent and 21 percent, respectively, over the year and had combined sales of $167.6 million, or 132.7 million euros.