ITALY: Tod’s FY profit dips despite international growth
- FY net profit down 8% to EUR133.8m (US$185.8m)
- Sales edge up 0.5% to EUR967.5m
- Q4 sales up 0.8% to EUR214.9m
Positive effects of the company’s international expansion boosted sales
Luxury apparel and footwear business Tod’s saw its 2013 net profit drop 8% following a change of strategy in its home Italian wholesale market.
The slight sales increase was driven by a sharp improvement in trade from the third quarter, and the positive effects of the company’s international expansion, particularly for its Tod’s and Roger Vivier brands.
However, the group's decision to rationalise its Italian wholesale distribution impacted sales for Hogan and Fay, whose revenues for the year fell 10.8% and 22.6% respectively.
Meanwhile, Tod’s revenues were up 1.5% and Roger Vivier surged up 52.5%, driven by double-digit growth in the Americas and Greater China.
“The group 2013 results confirm the positive path of international growth, driven by Tod’s and Roger Vivier,” said chairman and CEO Diego Della Valle.
“We efficiently managed the working capital requirements and generated a significant amount of cash, thus strengthening our solid financial structure.”
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