from the daily:
Tod's: Sales Up, Profits Down
Wednesday, May 12, 2004
The Tod’s Group, owner of such high brow labels as Tod’s, Hogan and Fay, reported that its sales for the first quarter 2004 inched up 1.7% to 105.6 million euro. Based on constant exchange rates, Tod's saw revenue growth of 4.7% from the 103.8 million euro clocked last year during this period.
The mother brand, Tod’s, backtracked a slight 1.3% to 58.7 million euro in sales. The company assures that its pebbled soled driver shoes and soft leather handbags are still in high demand, though—it’s just that its international presence (read: American) made it more susceptible to the drooping dollar. Speaking of shoes, sales for those dipped 2.8% overall, while Tod’s diversification into leather goods (bags, wallets and the like) proved to be a growth area (up 19.6%).
On the profits page, the situation was not quite as rosy. Tod’s reported that its pre-tax profit was 9.1 million euro, down over 30% from 14.9 million euro last year. Net income also dropped—nearly in half—to 4.7 million euro. But CEO Diego Della Valle isn’t fazed.
In a statement, the Italian manager said: “The temporary drop in margins was a natural consequence of the changed ratio between wholesale and retail sales, that entails a delay of the months in which the related revenues are booked. These figures, together with the positive signals currently coming form the markets, allow us to confirm our growth forecasts in terms of both revenues and profits for the year underway.”
J.J. MARTIN
Tod's: Sales Up, Profits Down
Wednesday, May 12, 2004
The Tod’s Group, owner of such high brow labels as Tod’s, Hogan and Fay, reported that its sales for the first quarter 2004 inched up 1.7% to 105.6 million euro. Based on constant exchange rates, Tod's saw revenue growth of 4.7% from the 103.8 million euro clocked last year during this period.
The mother brand, Tod’s, backtracked a slight 1.3% to 58.7 million euro in sales. The company assures that its pebbled soled driver shoes and soft leather handbags are still in high demand, though—it’s just that its international presence (read: American) made it more susceptible to the drooping dollar. Speaking of shoes, sales for those dipped 2.8% overall, while Tod’s diversification into leather goods (bags, wallets and the like) proved to be a growth area (up 19.6%).
On the profits page, the situation was not quite as rosy. Tod’s reported that its pre-tax profit was 9.1 million euro, down over 30% from 14.9 million euro last year. Net income also dropped—nearly in half—to 4.7 million euro. But CEO Diego Della Valle isn’t fazed.
In a statement, the Italian manager said: “The temporary drop in margins was a natural consequence of the changed ratio between wholesale and retail sales, that entails a delay of the months in which the related revenues are booked. These figures, together with the positive signals currently coming form the markets, allow us to confirm our growth forecasts in terms of both revenues and profits for the year underway.”
J.J. MARTIN
