Positive Tod’s sales rise but profits dip in H1

Luxury Italian accessories retailer Tod’s said it expects to complete the back end of the year strongly after H1 revenues were boosted by an impressive showing in The Americas, supported by favourable exchange rates.

However, first half profit slipped 10% to €50.4m ($55m) and operating profit was flat at €103m but topped analysts view for €95.5m.

Revenue rose 7.9% to €515.3m, above analysts’ €500.5m, and rose 1.8% currrency neutral in the period after a 3% decline in the first three months. Comp sales fell 5.6% at constant currencies, an improvement compared to an 8% dip in the 19 weeks to May 10.

H1 sales were boosted by a 22.7% sales jump in The Americas. Elsewhere, sales rose 3% in Italy, 13% in the rest of Europe and by 0.3% in Greater China.

Core footwear sales lifted 10% while leather goods and accessories grew 0.7% while apparel sales fell 0.6%.

Chief executive Diego Della Valle said the company remains confident about the second half of the year, when it expects “good results”, considering the good feedback received by the autumn/winter collections and despite difficult market conditions in key luxury markets, such as China.

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