Tod's announced that the group's net profit rose by 13.7 percent to €74.4 million in the first half of 2012, boosted by ongoing strong sales in the Asian and U.S. markets. The double-digit sales growth for shoes, by 10.8 percent, confirmed the strong position of the group in its core business.
Consolidated net sales were 9.8 percent higher than a year ago at €482.5 million. They were primarily driven by the Tod's brand, with a significant acceleration in the second quarter of the year (up by 12 percent compared with an 8 percent increase in the first quarter).
The operating profit before amortization (Ebitda) was €123.5 million, up by 6.8 percent from the year-ago period and with a 25.6 percent margin on sales. Ebit was €103.4 million, up by 7.3 percent.
At constant exchange rates, sales would have risen by 7.3 percent from the first half of 2011. Ebitda and Ebit would have been, respectively, €117.7 million and €98.1 million.
By product, consolidated sales of shoes grew to €360.6 million, an increase of 10.8 percent, or 8.3 percent at constant exchange rates. Sales of leathergoods and accessories totaled €83.1 million, up by 14.3 percent, or 10.3 percent at constant exchange rates. Revenues from apparel were €38.3 million, down by 6.5 percent from the year-ago period, primarily due to the poor performance of Fay.
By brand, sales in the half-year were up for Tod's by 19.4 percent to €286.2 million, supported by the excellent results of its network of directly operated stores (DOS). Sales of the Hogan brand went down by 12.0 percent to €130.6 million, reflecting a rationalization of the Italian wholesale distribution network intended to preserve the exclusivity of the brand and the quality of the receivables. The brand continues to perform strongly abroad. An 8.1 percent drop for the Fay brand, down to €32.5 million, came for the implementation of a similar strategy in Italy, partly offset by an acceleration of the brand's international expansion. Sales of the Roger Vivier brand totaled €32.7 million, more than double compared with the first half of 2011, with a rise of 110.3 percent, or 101.2 percent at constant exchange rates.
The importance of international markets is up significantly for the group. As of June 30, its sales outside Italy made up 58.8 percent of the turnover, compared with 48.6 percent in June 2011.
By region, the strongest performance was registered in Asia and Rest of the World, a region that has come to represent approximately 30 percent of the group's turnover, with an increase of 55.6 percent to €144.6 million (a 47 percent growth at constant exchange rates), driven by China and Japan. Sales in North America grew by 30.0 percent to €38.1 million. In Italy, sales were down by 12 percent to €199.0 million, while in the rest of Europe there was an increase of 10.6 percent to €100.8 million, driven by the outstanding results of the U.K. and France.
Tod's board of directors has approved the merger in Tod's SpA of Edmond Srl, a company wholly owned by Tod's. The transaction will not involve any capital increases.
Diego Della Valle, Tod's chairman and chief executive, said he was confident that results in the second half would be good and confirmed expectations of significant growth for the full financial year.