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MILAN — Tod's SpA on Wednesday reported an 8 percent gain in first-quarter operating profits, following revenue growth across all brands, particularly Hogan.
The company, which also owns the Tod's, Fay and Roger Vivier brands, confirmed its forecast to achieve "good" growth in revenues and earnings come full year.
Buoyed by strong demand for high-end footwear, particularly in Italy, Tod's said operating profits for the three months ended March 31 hit 37.2 million euros, or $55.7 million at average exchange.
Sales for the period gained 7.4 percent to 190.9 million euros, or $285.9 million, while earnings before interest, taxes, depreciation and amortization increased 8.1 percent to 43.7 million euros, or $65.5 million.
Tod's chairman and chief executive officer Diego Della Valle said the figures "confirmed the strength of the group's strategy...despite the challenging economic environment.
"Based on recent retail sales results and on the fall-winter orders' backlog, I can confirm our expectations to achieve a good growth in revenues and profits in full year 2008," Della Valle said.
By brand, sales of the Tod's label edged up 1.7 percent to 97.2 million euros, or $145.6 million; Hogan revenues jumped 18.6 percent to 63.3 million euros, or $94.8 million, and sales of Fay gained 4 percent to 24.5 million euros, or $36.7 million.
Revenues at Roger Vivier, which the group said was "still in a start-up phase," spiked 35.6 percent to 5.1 million euros, or $7.9 million, boosted by the February opening of a 2,700-square-foot, three-level flagship in Milan.
By product, revenues from shoes gained 11.5 percent to 130.4 million euros, or $195.3 million, while sales of apparel gained 9.9 percent to 24.3 million euros, or $36.4 million.
These compensated for a 5.5 percent drop in sales of leather goods and accessories to 36 million euros, or $53.9 million, which were "penalized" by "the challenging currencies and macroeconomic environment," Tod's said.
By geography, the group performed best in its core market of Italy, where revenues were up 12.7 percent to 100.3 million euros, or $150.2 million. Sales in the rest of Europe gained 2.9 percent to 48.8 million euros, or $73.1 million, while revenues in Asia and the rest of the world increased 4.7 percent to 27.8 million euros, or $41.6 million, driven by the "outstanding results achieved in the southeast of Asia," the company said.
In North America, sales fell 4.8 percent to 14 million euros, or $21 million, although at constant exchange they gained 8.2 percent.