Tod’s Group 2015 rise 7.4%

Italian luxury goods group Tod’s reported a 7.4 percent rise in 2015 revenues, boosted by a strong performance across its brands and favourable currency moves that helped offset weakness in Hong Kong.

Tod’s, famous for its Gommino loafers, said 2015 revenues totalled 1.04 billion euros ($1.13 billion), above a Thomson Reuters analyst consensus forecast of 1.02 billion euros. Revenues rose 1.8 percent at constant exchange rates.

“At reported rates, all the brands, product categories, regions (except Hong Kong) and distribution channels registered positive performances,” the company said in a statement, also pointing to a positive reception for its new handbag collection.

Closely-watched same-store sales fell 6 percent at constant exchange rates.
In a conference call with analysts, the company added it was confident of reaching analysts’ consensus expectation for 2015 EBITDA of 200 million euros, “possibly even more”.

Tod’s said sales in Italy, its biggest market, rose 3.7 percent and increased 21 percent in the Americas.

Sales in Greater China were broadly in line with the previous year. The company added that while it saw some tentative signs of improvement in mainland China, the positive trend was not yet visible in Hong Kong.

Weaker consumer spending in China, where stellar economic growth is easing, a recession in Russia amid plummeting oil prices and global security threats hurting tourism have put a brake on growth for the luxury sector.

Tods Gommino