Italian luxury leather goods producer, Tod’s Group, has posted an 8.1% increase in sales for 2003 to €387 million. However it also reported a heavy net profit fall of 28.2% to €25.8 million.

The Milan Stock Exchange-listed company was led by the strength of its Tod’s brand, which generated a 7% increase in sales, representing 57.6% of total revenues. Hogan revenues were down 4.3%, accounting for a 23.3% share while revenue growth for Fay was up 24.5%, taking 17.5% of the total.

The Tod’s Group, which opened 24 new stores in 2003, posted a 3.7% decline in footwear sales to €237.9 million. Revenues for leather goods and apparel grew 18.6% (€69.4 million) and 21% (€63.3 million) respectively.

By region, Asia achieved the most impressive sales growth – up 41.2% to €32.2 million. Italy remained as the group’s main market, representing 48.9% of consolidated revenues and an increase in sales of 7.2%. European sales were flat - down 0.8% - while the US market showed signs of recovery, generating growth of 7.3% (€53.1 million).

Diego Della Valle, chairman CEO, commented: “We are satisfied with the group sales figures and are extremely pleased with the success gained by newly introduced product categories among our customers. This, together with the ongoing consolidation of new openings, will allow the group to achieve additional growth in terms of both turnover and profitability in the medium term.”

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