Italian leather goods group Tod’s on Wednesday expressed confidence in its first-half profits as it reported a 23 per cent yearly rise in revenues net of currency swings, driven by a strong performance its main market Greater China.
Tod’s said sales totalled US$636 million in January-June with crown jewel Roger Vivien growing 30 per cent and Tod’s itself rising to $318.6 million up from $234 million a year before.
Sales in Greater China rose 45 per cent to $117.6 million at constant currencies, with the Americas the only area that recorded a small decline in revenue.
The impact of currencies was negative for $5.5 million.
“We are confident on the profitability of the semester and on the results for the full year, despite the uncertainty and volatility of the macro-economic context at an international level,” CEO Diego Della Valle said.
Tod’s, which founder Della Valle has in vain tried to take private by buying out minority investors, said tourism and local demand supported the European markets while Japan had also performed particularly well.
Tod’s said the retail channel, which represents more than 75 per cent of the Group’s turnover, accelerated slightly in growth at constant exchange rates, compared to the first few months of the year.
- Reporting by Valentina Za, editing by Gavin Jones, of Reuters.
