Italian shoe firm Tod's SpA has reported a 14.9 per cent fall in first-half earnings despite a 3.8 per cent in first-half group sales to 173.4 million euros.

"The rise in sales, coming despite currency fluctuation, and the temporary drop in profit margins are the result of our choice to accelerate important investments," said Tod's chairman and chief executive Diego Della Valle.

Net profit for the six months ended 30 June fell to 10.8 million euros from 12.7 million euros in the year-earlier period.

Group sales in Asia rose 42 per cent to 14 million euros from 10 million euros.

Diego Della Valle said Tod's is expanding its network of directly-owned stores in a bid to boost its market share and profitability and is also investing in a new production facility in Italy.