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

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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.