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Tod's sales and profit surge
Tod's SpA realized a surge in profits for the nine months ended 30 September of 20.2 percent to €52.6 million. The luxury apparel and accessories group generated sales up 10.7 percent to €438.3 million, with same store sales for the period up 6.9 percent. Earnings before interest and tax soared 22.7 percent to €89.7 million. “The results released today are in line with our expectations and confirm the continuous and sound growth of our group,” said chairman and chief executive Diego Della Valle in a statement. “I'm therefore confident in the group's ability to achieve its targets for the current year and to continue to post significant growth rates in sales and profits also over the next years.”
The Tod's brand saw sales gain 13.8 percent to €250.8 million, while Hogan sales rose 19 percent to €119 million. The Fay brand proved a disappointment, with sales down 5 percent to €62.1 million. The company blamed a change in the brand's production and delivery schedule for the dip and said Fay's sales through October outperformed those of the previous year. Meanwhile, exclusive footwear brand Roger Vivier saw sales double to €4.8 million.
“The Tod's and Hogan brands gave strong performances and we foresee plenty of growth opportunities there, however the Fay brand's disappointing results caused the share price to drop,” says analyst Andreas Inderst of ABN Amro. “The launch of its fashionable bag was not well received by consumers and there were weather related issues. However, we do believe the group can make up for it in the fourth quarter.”
Sales in Tod's largest market, Italy , rose 9.7 percent to €212.2 million, while North American sales gained 5.6 percent to €43 million. Sales in Asia and other countries leapt 30.2 percent to €66.4 million. Geographic performances in Italy , North America and Asia were less strong than in the first half, although sales growth in the Europe – excluding Italy – improved in the third quarter. Sales there rose 5.4 percent to €116.7 million for the first nine months. Leather goods and accessories saw an increase of 24.1 percent to €100.7 million, while footwear sales rose 10.6 percent.
Maintaining a hold recommendation, Inderst said that although the outlook for 2007 is positive, with pre-orders up in the low double-digits, he does not foresee any short term triggers that might affect the share price positively.
15 November 2006
Tod’s H1 sales rise
Tod’s SpA has reported double-digit sales growth for the first half, thanks to increasing demand for its bags, shoes and apparel. The Italian company’s revenues for the six months ended 30 June rose 15.4 percent to €273.3 million. Same-store sales gained 7.3 percent. The company will release profit figures on 12 September. “I’m really confident on the group’s ability to achieve its targets in the current year and to continue to increase significantly its revenues and profitability…in the next years,” said chairman and chief executive Diego Della Valle in a statement. Sales at the Tod’s brand rose 15.1 percent to €164.2 million, while revenues at Hogan soared 23.9 percent to €75.4 million. Fashion brand Fay saw sales climb 7.7 percent to €29.5 million. The company’s luxury footwear brand Roger Vivier reported a sales surge of 72.2 percent to €2.7 million. Sales in Italy, the group’s largest market, rose 17.6 percent to €126 million, while revenues for the rest of Europe climbed 4 percent to €72.4 million. Sales in North America gained 9.8 percent to €29.5 million, while revenues in Asia and the rest of the world soared 36.4 percent to €72.4 million. Shoe sales rose 13 percent to €178.4 million, while leather goods and accessories sales surged 26.9 percent to €65.7 million. Clothing sales rose 7.5 percent to €28.8 million.
1 August 2006
Tod's in joint venture with Kurt Geiger
Kurt Geiger, Europe's largest luxury shoe and accessories retailer, has entered into a joint venture with Tod's, the Italian luxury shoe brand, which will see the opening of Tod's first-ever airport store. The boutique will open in Terminal 3, Heathrow, this month selling handbags, accessories and a selection of women's and men's shoes.
Kurt Geiger is already one of Tod's partners worldwide with Tod's Group brands likely to represent sales of over £4million for the current financial year. In addition to Tod's brand, Kurt Geiger has strong businesses with Tod's Group brands, Hogan and Roger Vivier. Kurt Geiger operates the highly successful Tod's boutiques in Harrods and Selfridges and launched, in Harrods, the first-ever Roger Vivier boutique in Europe.
Neil Clifford, Chief Executive of Kurt Geiger, commented: “We are delighted to be expanding our strong relationship with Tod's. Their brands are iconic in today's luxury market and we have every confidence that we will see strong growth from this exciting joint venture.”
Diego Della Valle, Chairman of Tod's, commented: “Our relationship with Kurt Geiger goes from strength to strength. Kurt Geiger is an important partner to Tod's across their luxury portfolio and we are extremely pleased that they will be managing our important airside expansion.”9 April 2006
Tod's double-digit profit leap
Luxury group Tod's has posted a surge in 2005 net profits of 38.7 percent to €53.4 million (£37.2 million), thanks to an improved tax rate and lower costs. Sales for the year climbed 19.5 percent to €503 million. “As far as the current year is concerned, considering the positive signals from the store network and the strong success enjoyed by the winter collections, I'm confident that our group will achieve a further significant growth of revenues and a more than proportional increase of margins,” said president and chief executive Diego Della Valle in a statement.
Gross profits were boosted by proportionally lower depreciation and amortization costs. The group expanded its work force with the addition of 94 employees to total 2,176 at the end of 2005. Despite the increase, labour costs dropped to 14.8 percent of revenues from 16.1 percent the previous year. Tod's invested a total of €21.4 million in the refurbishment of directly owned stores and in the updating of logistical and production structures.
Sale increased across the board. Sales of the Tod's brand grew 20.3 percent to €288.5 million, while revenues at Hogan rose 23.3 percent to €126.1 million. Footwear still represented the largest share of the group's revenues with 62.6 percent. Leather goods and accessories represent 22.2 percent of the group total. Meanwhile the Fay brand realized a sales growth of 12.3 percent to €77.1 million.
31 March 2006
Tod's revenues rise
Italian luxury goods group Tod's SpA realised a 19.6 percent rise in full-year revenues to €503.1 million, compared with €420.8 million in 2004. The company said that the leather goods and accessories businesses had performed particularly well, boosting overall performance. Sales of the Tod's brand rose 20.3 percent, accounting for 57.4 percent of total revenues. Hogan sales climbed 23.3 percent while Fay sales increased 12.3 percent. The sale of shoes generated a revenue increase of 17 percent to €316 million. Meanwhile, sales of leather good and accessories soared 32 percent to €112 million.
Consolidated sales in Italy increased 18 percent to €241.4 million, while the rest of Europe saw sales rise 15.2 percent to €134.4 million. The US experienced a sales growth of 13.7 percent, but Asia was the winner with a sales increase of 42.1 percent to €70.3 million. Asian markets represent 14 percent of total sales. “The excellent sales results of the year confirm the ongoing and steady growth of our Group, across all the brands, all the products and in all the markets,” said Group Chairman and CEO Diego Della Valle.
1 February 2006
Tod's offers the whole picture
After dedicating 105 years to leather goods, Italian luxury label Tod's is about to take the plunge with a new ready-to-wear line designed by Derek Lam. The new collection will hit select stores in February and will feature in the brand's new spring ad campaign. “It's a little bit more sexy than the other campaign, and there's an element to justify that,” Claudio Castiglioni, Tod's USA CEO, told WWD. “We used Tod's clothing. We didn't have to shop (elsewhere) to create the image of Tod's. The clothing belonged to the DNA of the brand. Our mission has been accomplished. It's a 360-degree advertising campaign.”
Featuring models dressed in the brand's polo shirts, short-sleeve tops and leather jackets, the campaign was shot by Mikael Jansson and will appear in the March issues of magazines like Vogue and Elle. According to WWD, the company is also considering launching a Tod's luggage collection. Meanwhile parent company Tod's SpA is performing solidly, with a 36 increase in net profits for the first nine months of the year to €43.8 million (£29.7 million).
20 December 2005
Tod's reports revenues and profits growth
Italian luxury footwear and leather goods group Tod's has reported an increase in revenues during the first nine months of 19.4 percent to €395.9 million (£266.4 million) from €331.6 million during the same period last year, despite a challenging consumer market.
All the brands in the Group's stable delivered strong performances and excellent growth rates. The Hogan brand saw revenues increase by 21.3 percent, whilst the Tod's brand grew 18.9 percent. Fay's revenues increased 15.8 percent. As of 30 September, Tod's revenues accounted for 55.7 percent of the Group's total turnover, while Hogan and Fay represented 25.3 percent and 16.5 percent respectively.
14 november 2005
Tod's posts profit
The Italian luxury group Tod's reported a net profit in the first six months of 2005 of €20.3 million (£13.8 million), an increase of 44 percent compared with the same period last year. Sales for the first half rose 22 percent to €236.9 million from €195 million the year before, thanks to strong sales in Europe and Asia. Footwear sales, which accounted for 66.6 percent of total group sales, rose 19.4 percent. In a statement the company said that earnings before interest, tax, depreciation and amortisation were up 34.3 percent year-on-year to €47 million.
The Tod's brand saw turnover increase by 23.4 percent, while Hogan turnover rose 21.3 percent and Fay rose 15.5 percent. Meanwhile, sales in Europe increased 23.8 percent, while Asian sales jumped 37.5 percent. The home market, Italy, however, remained Tod's largest, with sales up 20 percent to €107 million.
“The excellent results today, the strong growth of revenues and, even more, of profitability confirm the effectiveness of the Group's strategy. Furthermore, the outstanding start of the sales of our winter collections now in the stores, as well as the positive signals of the next spring summer order collection make me fully confident of the full year results,” said chairman and CEO of the Group, Diego Della Valle.
28 September 2005
Tod's sales growth slowdown
Although Italian luxury leather goods house Tod's posted a 21.8 percent rise in first-half revenue, the results reveal a flagging sales growth rate in the second quarter. Sales rose to €236.8 million from €194.5 million last year in the first six months ended 30 June. However, despite strong sales, sales slowed in the second quarter. The first quarter saw sales increase 33 percent, while calculations for the second quarter revealed a growth of only 8.4 percent. Tod's will release its first-half profits on 26 September.
“This performance is based on the success of all our brands in all product categories,” said Tod's chairman and CEO, Diego Della Valle, in a statement. “These results, together with a healthy start of our winter collections in the stores, make me fully confident (we will) achieve our targets for this year.” The company attributes the dip in sales growth in the second quarter to weaknesses in its smaller labels Hogan and Fay. Jacques-Franck Dossin, analyst with Goldman Sachs, told the FT that the bank had “raised the bar quite high” after the robust first quarter.
“We knew that we could have seen higher volatility in (second-quarter) sales owing to a change in timing in deliveries versus last year, which we believe most affectyed Fay and Hogan as they are more dependent on wholesale sales,” said Dossin. Retail sales in the company's directly operated stores rose 17.1 percent to €107.1 million. Tod's said most of the growth was organic. At the end of the period, Tod's had 105 directly operated sotres, an increase of only three sales points compared with the same period the year before. The company said that wholesale sales had risen 27.1 percent to €115.4 million.
The Tod's label generated the most revenue for the company. It's sales accounted for 60.2 percent of total sales in the first half. Hogan generated 25.7 percent sales, while Fay contributed 11.6 percent to the total. Footwear sales climbed 19.4 percent to €157.8 million, while leather goods and accessories revenue increased 33 percent to €51.8 million. Apparel sales climbed 15.9 percent to €26.7 million.
28 July 2005
Tod's reports sales increase
The Italian luxury goods group, Tods SpA, has reported double-digit sales growth for the first nine months of 2004. The Group, which is behind the Tod's, Fay and Hogan brands, reported that trading had been strong in Europe and especially in Asia.
Group sales increased by 15.7% to EUR331.6 million (GBP239.1 million), with leather goods showing the strongest growth; sales increased by 23.3% to EUR62.2 million (GBP44.8 million). The company's core business is footwear, which saw an increase in sales of 15.1% to EUR214.1 million (GBP154.4 million). Clothing, meanwhile, saw a sales increase of almost 10% to EUR54.8 million (GBP39.5). The Hogan brand improved the most with an increase in sales of 18.6% to EUR82.5 million (GBP59.5 million), with the Tod's brand following with a sales climb of 14.7% to EUR185.4 million (GBP133.7 million).
Sales increased in Italy by 15% and by 14% in the rest of Europe. Totals sales for the nine month period in Europe amounted to EUR94.2 million (GBP68 million). However, Asia outperformed other regions in terms of sales growth. Tod's sales rose by 61.7% to EUR36.6 million (GBP26.4 million) in Asia. As a result the brand now generates 11% of total sales compared with 7.9% in the same period last year. The US saw a sales drop of 4%, but at constant exchange rates the sales rate rose by 6%.
Tod's operating profit for the nine month period grew by 20% to EUR45.1 million (GBP32.5 million). The Group opened four new stores in the third quarter: two Dev stores in Verona and Bolzano in Italy, an additional Tod's store in the Galleria Vittorio Emanuele in Milan, and a new Tod's store in Osaka, Japan.
17 November 2004
Sales Fluctuate At Tod's
Italian luxury leather goods retailer Tod's S.p.a., last weekend announced profits for the first nine months of 2003 were hurt by investments, but sales were growing due to stronger performance in their retail and leather goods operations.
The Milan-based company, which is also behind brands Fay and Hogan, stated that pre-tax profit for the January to February period fell 27.6 per cent to EUR37.5million due to costs related to the creation of new retail jobs, increased rents and the opening of new stores. Earlier this year, the company's net profit was down to EUR22,9m from EUR30.1m.
With the fall of shoe sales in Europe, Asia is the strongest contender for Tod's with a growing market showing an increase in sales of 32.4 per cent. Sales increased in Italy by a marginal 6 per cent, with a fall in the rest of Europe by 9.3 per cent.
17 November 2003
Tod's presents T Project
Italian leather goods company Tod's has introduced its new collection of bags for summer 2003 called T Project. Though leather goods are still at the base of Tod's lines, for this new one the fashion house opts for a new material, canvas, a water-resistant cotton gabardine finished to make the fabric tougher and its yarn brighter.
The goodies are available in summery colors like cream and beige, cream and
gray or cream and pink. Another peculiarity of this line is the finishing in
cowhide which is aged naturally. The line includes several different models.
There is a set of cases in three sizes, beauty cases, shopping bag, beach bag
and tiny shoulder bag.
And finally F.Y.I: Halle Barry has already been spotted carrying a T Project shoulder bag.
May 8, 2003
Profit growth expected for Tod's
Italian classy shoe and leather goods group Tod's has predicted a huge profit growth for the next couple of years. The company's chairman also announced plans to dramatically boost its presence in Asia.
Diego Della Valle told shareholders that: "in the next two or three years we will grow at such a pace you would think we had made an acquisition". He did add though that Tod's does not plan any buy-outs.
Tod's, which also owns Hogan footwear and Fay apparel brands, recently posted a 14 per cent climb in pre-tax profit. The company plans to add store s to the 71 shops it has already and will focus on Japan in particular.
"Since we plan no acquisitions and so won't have to bear those sorts of costs, we will have excellent profit growth for the sector," Della Valle added.
April 30, 2003
New Tod's store in London
Italian luxury leathergoods specialist Tod's is about to open a boutique in London's Bond Street and has scheduled the opening of a Rome flagship next week. The company also recently opened boutiques in Geneva, Zurich, Brussels and Amsterdam. The London store will open at the end of April and will be London's third Tod's boutique.
April 25, 2003
Tod's start building in Tokyo
Italian shoemaker Tod's has presented plans for a new and futuristic space
for boutiques and bureaus in Tokyo this week. Work on the building will start
shortly and last for about one year.
"Omotesando Building" is Tod's new space that will rise in Nippon Capital Town. The building was designed by Toyo Ito, a Japanese architect, and will be developed on a 2,500sqm area with two levels dedicated to sales (450sqm) and the others to the bureaus.
This work aims at being a powerful example of the foreign policy of the brand. Currantly Tod's has a network including 71 flagship stores and 38 franchised stores. Europe (excluding Italy) represents 29,8% of its gains, and this new store, with its strong and peculiar architectural impact, will surely increase them in future.
February 18, 2003
Decent turnover rise Tod's
Tod's SpA, the Italian luxury shoe- and bag maker behind the Tod's, Fay and Hogan brands, on Wednesday said that turnover increased by 12.5 per cent to 12.7 million euro and that it "believed the positive trend will continue" in 2003. The company's turnover increased to 358.2 milion euro from 318.5 million in 2001. Tod's, which opened six own stores in 2002 and now trades from 71 own and 37 stores worldwide, said that business in Asia continued to be "brilliant" with sales up 25.5 per cent.
During the year, the company's clothing brand Fay showed the strongest growth with sales increasing by 28.6 per cent to 52.1 million euro. Hogan saw sales rise by 11.4 per cent to 90.6 million euro while the company's flagship brand Tod's, which accounts for 59.5 per cent of total turnover, increased sales by 8.5 per cent to 213.1 million euro. Milan-based Tod's, who saw profits decline in the second half and third quarter of 2002, said that full-year profit also showed strong growth.
January 31, 2002
Tods sales going strong
Italian luxury shoe company Tods S.P.A. saw sales grow strongly for the first half of 2002. Exports to Europe, excluding Italy, now account for almost 35 per cent of total turnover and at the end of June amounted to EUR 58.1m. This success is in strong contrast with sales in homeland Italy which rose a mere 4.1 per cent.
Business at the company's 57 own and 42 franchise stores worldwide increased by 16.8 per cent to EUR 65.1m. Milan-based Tod's, which also owns the Hogan and Fay brands, opened stores in Frankfurt and Amsterdam in the second quarter.
The news announces a new chapter in the Tods success story. Recently
the company publicized its 2001 profit which had almost doubled to EUR
36.8m. The company, expects turnover and profit to increase even further this