Tod’s grows profit
15/05/2008
High-end footwear brand Tod’s has reported an 8% gain in first-quarter operating profits, following revenue growth across all its brands, particularly Hogan.
The company, which also owns the Tod's, Fay and Roger Vivier brands, confirmed its forecast to achieve good growth in revenues and earnings for the year.
Buoyed by strong demand for high-end footwear, particularly in Italy, Tod's said operating profits for the three months ended March 31 hit €37.2 million euros on sales of €190.9 million.
Sales for the period gained 7 percent to 190.9 million euros, or $285.9 million, while earnings before interest, taxes, depreciation and amortization increased 8 percent to 43.7 million euros, or $65.5 million.
Tod’s chairman and chief executive, Diego Della Valle, said the figures confirmed the strength of the group’s strategy in spite of the challenging economic environment.
He said: “Based on recent retail sales results and on autumn-winter orders, I can confirm our expectations to achieve a good growth in revenues and profits in full year 2008.”
Sales of the Tod’s label grew by 2% to €97.2 million; Hogan revenues jumped 19% to €63.3 million, and sales of Fay went up by 4% to €24.5 million.
Revenues at Roger Vivier, which the group said was “still in a start-up phase”, rose by 36% to €5.1 million euros, thanks to the opening in February of a new flagship store in Milan.
In terms of geography, the group performed best in its core market, Italy, where revenues were up 13% to €100.3 million. Sales in the rest of Europe were up by 3% to €48.8 million, while revenues in Asia and the rest of the world increased 5% to €27.8 million.
In North America, sales fell by 5% to €14 million euros, although the company said this was mostly because of currency exchange factors.
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