MILAN — Boosted by gains in its core footwear business and growth across all geographic markets, Tod’s SpA last year posted a 28.6 percent increase in net profits to 110.8 million euros, or $146.2 million, compared with 85.7 million euros, or $119.1 million, in 2009.
The Italian luxury goods company hit the $1 billion sales mark, with revenues growing 10.4 percent to 787.5 million euros, or $1.03 billion.
The company attributed the increase in profits to strong organic sales growth, a more favorable product mix and increased efficiency. Dollar figures were converted from the euro at average exchange rates for the periods to which they refer.
“In full-year 2010, our group achieved outstanding results in sales and, even more, in profitability. Also, the working capital management and the cash generation were excellent, thus confirming the very sound solidity of our group,” said chairman and chief executive officer Diego Della Valle. “Considering also the strong start of the spring-summer season in our stores and the positive signals we are receiving from the beginning of the fall-winter orders collection, I’m confident that our group will achieve excellent results also in the current year.”
In the full year, sales of the Tod’s brand grew 16.7 percent to 407 million euros, or $537.2 million. In particular, sales in the fourth quarter grew 27.3 percent. Hogan sales rose 4.4 percent to 268.3 million euros, or $354.1 million. The brand, which is expanding globally, presented its second capsule collection designed by Karl Lagerfeld earlier this month in Paris. Apparel label Fay showed a 2.2 percent drop in sales to 89.7 million euros, or $118.4 million, while the Roger Vivier brand, designed by Bruno Frisoni, saw 45.3 percent growth to 21.7 million euros, or $28.6 million.
The group’s footwear division posted an 11.6 percent increase in sales, which reached 564.6 million euros, or $745.2 million. Leather goods and accessories rose 10.6 percent to 123.2 million euros, or $162.6 million. In the fourth quarter, sales of this category leaped 35 percent. Apparel grew 4.3 percent to 99.1 million euros, or $130.8 million.
Sales in Italy gained 5.1 percent to 425.7 million euros, or $561.9 million, and 8.6 percent in the rest of Europe, reaching 163.7 million euros, or $216 million. Revenues in the U.S. rose 15 percent to 53.4 million euros, or $70.5 million. In particular, that market showed a 23 percent spike in the fourth quarter. Asia and the rest of the world grew 30.5 percent to 144.7 million euros, or $191 million, in 2010, registering a 65 percent jump in the last quarter. Tod’s cited China, Hong Kong, Taiwan and Korea as the best-performing areas.
In 2010, investments totaled 96.1 million euros, or $126.8 million, including 66.3 million euros, or $87.5 million, for the acquisition in November of the seven-story Omotesando building in Tokyo, designed by architect Toyo Ito. The site houses Tod’s Tokyo flagship and offices, which opened in 2005. The remaining 29.8 million euros, or $39.3 million, were mainly channeled into the company’s retail network.
At the end of December, there were 159 directly operated stores and 71 franchised units, compared with 149 directly operated stores and 78 franchised ones at the end of 2009.
As of Dec. 31, the group’s cash pile reached 96.5 million euros, or $127.3 million, compared with 177.2 million euros, or $246.3 million, at the end of the previous year.