ITALY: Tod's FY sales up 7.8% on strong exports
- FY sales up 7.8% to EUR963.1m
- Tod's brand up 12.5% to EUR569.7m
- CEO expects improved sales in 2013
Strong international sales have helped luxury goods group Tod's to increase revenues by 7.8% in 2012, despite continued weakness in its home market of Italy.
The core Tod's brand saw sales rise 12.5% and Roger Vivier more than doubled its revenues off a small base, but Hogan and Fay – two brands more exposed to the Italian market – registered double-digit sales declines, down 13.3% and 15.2% respectively.
Tod's said the performance of the two brands was impacted by the strategic decision to rationalise wholesale distribution in Italy, given the market’s difficult situation.
Sales in Italy fell 14.5% in the year and now account for less than half of the company's revenues, thanks to a 31% surge in revenues in North America, a 48.7% rise in Asia/rest of the world and a 10% increase in Europe outside Italy.
Shoe sales rose 9.9% to EUR710.4m, but apparel revenues – closely linked to the Fay brand – declined 15.1% to EUR86.2m.
Tod's chairman and CEO Diego Della Valle said he was “deeply satisfied” with the sales results, adding: “Our group has further strengthened its position of leading player in the luxury goods industry, despite the challenging environment.”
The company, he said, would be “even more selective” in its Italian wholesale distribution this year, but he believed its overall performance would improve on 2012.
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