Luxury goods maker Tod’s Group has reported nearly 30% growth on last year for the first half of 2011.
The Italian company which also owns the brands Hogan, Roger Vivier and Fay has posted double-digit gains for revenues and profits as a result of strong sales of shoes and other Tod’s merchandise globally.
Tod’s SpA reported net profits of €65.5m (£57.3m), a 26.7% rise on the same six-month period last year. Consolidated revenues rose 16. 4%, to €439.5m (£384.2m).
The group’s chairman and chief executive, Diego Della Valle, said based on strong orders for fall collections they are confident second-half year results would be just as positive.
Tod’s chief financial officer Emilio Macellari said the group was on pace to meet consensus expectations of a 12.2% percent increase in top-line growth for the next half of the year.
The group also reported improvement of its operating profitability in the first half, with consolidated EBITDA of €115.6m (£101m), up 27.5% on the same period in 2010.
A more favourable product offer and area mix of sales was the reason for an operating margin increase of 230 basis points on last year.
There was a 22.3% rise in revenues of Tod’s brand, which accounts for 55% of the total group revenues, during the first half. Tod’s brand sales rose 25.6% over the March to June period.
Sales in the shoes product category jumped 15.3% in the first half, to €325.5m (£284.4m) due to “outstanding performance of the Tod’s and Hogan brands” the company said. All other categories reported double-digit sales growth over the six month period.
Macellari said Tod’s had a surge in sales across the world from May to July. Regions such as Hong Kong, China and the United States are accelerating more than other markets, the CFO explained.
Double digit growth was recorded across most of Europe, except in Italy, the group’s largest market (51% of total revenue) where growth was in single digits, and in Greece where there was negative growth.
The company’s goal is to grow its international reach with plans to open about 15 new units this year.
Hogan also has a global expansion strategy, but no plans to add branded stores in Italy.