Milan—Tod’s SpA raised its dividend Wednesday after posting a 2012 net profit on strong sales of its footwear and leathergoods in Asia and the United States.
The Italian company said its dividend would raise to 2.70 euros per share thanks to its net profit increase of 7.8% to 145.5 million euros. Its fourth quarter sales also were up, rising 9.6% to 213.2 million euros (about $284 million).
By brand, Tod’s sales were up 16.8% (12.5% at constant exchange rates). In full year 2012, Hogan sales achieved positive results abroad.
Revenues of the shoe category increased 9.9% (more than 7% at constant exchange rates).
Sales from leathergoods and accessories went up 14.2% (more than 9.5% at constant exchange rates). And revenues from apparel were 86.2 million euros.
“2012 figures confirmed the excellent results registered last year, despite the challenging domestic market and the impact of our strategic decision to make our Italian wholesale distribution even more selective, in order to preserve our brands’ exclusivity and positioning, and to protect the very strong quality of our credit portfolio,” said Diego Della Valle, chairman/ceo.
Tod’s had cut its wholesale distribution in Italy by about 20% last year to reduce the impact of the economic stagnation in Europe’s fourth largest economy. Sales in Italy were down 14.5%.
But sales in the rest of Europe were up 10.1% to 200.3 million euros (more than 8.8% at constant exchange rates.)
Sales in the United States were up 30.8% to 81.6 million euros (more than 22.1% at constant exchange rates) “despite the significant impact of Hurricane Sandy on fourth quarter figures.”
Sales from Asia and the rest of the world were up 48.7% to 297.3 million euros in (more than 39.6% at constant exchange rates) with “outstanding results” in Greater China, which represents about 19% of the Tod’s Group’s revenues.
Tod’s plans to open more Hogan and Fay stores outside the country and increase sales from leathergoods as it seeks to become more profitable like Hermès International, according to a report by Exane BNP Paribas.