Milan—Tod’s SpA reported Wednesday that its fiscal 2012 sales rose 7.8% to 963.1 million euros (about $1.28 billion) thanks to continued increases in Greater China, which accounted for about 19% of all sales.
“I am confident about 2012 group’s net results, which I believe will be higher than the outstanding level reached the previous year,” said Diego Della Valle, chairman/ceo, said.
The company’s fourth quarter sales were also up, rising 9.6% to 213.2 million euros (about $284 million).
The fiscal 2012 results were mostly in line with analysts’ average estimate that expected sales of 966 million euros.
Tod’s has been expanding internationally in an effort to reduce any dependence on its domestic Italian market which has been hard hit by recession.
Sales in North America rose 31% while those in Asia and the rest of the world were up 48.7%. Sales in the United States specifically were up too, increasing 30.8% to 81.6 million euros (about $109 million).
Italian Luxury Market Shrinks
But sales in Italy fell 14.5% to 383.9 million euros (about $511 million) due in part to the company’s decision to rationalize the Italian wholesale distribution significantly.
“We have decided to make our Italian wholesale distribution even more selective, in order to preserve our brands’ exclusivity and product positioning,” Della Valle said.
Recently, Luca Solca, head of luxury goods research at Exane BNP Paribas, told the Financial Times that the Italian luxurygoods market alone, including leathergoods and apparel, has shrunk 1 billion euros in the past 18 months.
As of Dec. 31, the group’s distribution network included 193 directly owned stores and 78 franchised stores.
Tod’s SpA produces and sells shoes and luxury leathergoods under the brand names Tod’s and Hogan. The company also deals in the casualwear with the brand Fay.