Tod’s First Half Profit Up on Sales Increase in Americas, Asia

Tod's for Fall: Calf hair Gommino moccasins in animal print

Tod’s for Fall: Calf hair Gommino moccasins in animal print

Milan—Tod’s reported Wednesday that its second quarter earnings grew, boosted by its two key brands and a double-digit sales rise in the Americas and Asia.

The leathergoods posted first-half net profit up 1.8% t to 75.7 million euros (about $1008 million), bolstered by sales up 8.4% in the second quarter.

The report was strong enough that the luxury leathergoods house now expects its full year sales volume to increase 6.4% year-on-year to approximately 1.25 billion euros (about $1.66 billion), in line with analysts’ consensus.

“I can continue to confirm we are still ok with the consensus both in terms of sales and profitability,” Chief Financial Officer Emilio Macellari said on a conference call.

Recession-weary Italy, where Tod’s has about 40% of its volume, continued to drag as Italian sales dropped 19% year-on-year in the first six months of 2013.

Its Hogan and Fay brands drastically underperformed the Tod’s and Roger Vivier labels, closing the first half with sales down 14.8% and 26.3% respectively.

Macellari said that while he expected Hogan to remain negative for the rest of this year, the brand should recover in 2014.

Meanwhile, sales were up 80.6% in the first half at Roger Vivier, the French shoe brand that Tod’s relaunched in 2003.

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Jeff Prine

Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com