ITALY: Turnaround investment hits Tod's H1
- H1 earnings down to EUR56.1m
- Sales fall 2.7%
- Domestic sales down 7.8%
Tod's consolidated sales were down 2.7%
Luxury apparel and footwear business Tod's saw its earnings and sales decline in the first half as the company continued with strategic investments to improve the growth potential of the group.
In the three months ended 14 June, net profit fell to EUR56.1m (US$75.1m) from EUR75.7m a year earlier.
The drop reflects Tod's decision to invest in its distribution network, communication, and human resources, which it says are necessary to support the mid-term growth potential of the group.
Consolidated sales were down 2.7% to EUR477.7m, primarily due to a slowdown in the company's most important markets and to a "challenging comparison basis".
Domestic sales fell 7.8% to EUR148.5m, while in the rest of Europe, revenues were up around 7% to EUR108m.
The performance of Greater China, however, confirmed the weakness of the previous few months, with sales down 7.6% to EUR117.8m.
CEO Diego Della Valle said: "Within this challenging environment, we continue to pursue our mid-term development plan, making all the investments necessary to support a solid growth of sales and EBITDA, also thanks to a careful cost control."
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