Tod’s, the luxury accessories group, attributed double-digit profit growth for the first half of 2012 to robust sales in Asia and the US, despite volatile global markets impacting its earnings closer to home.
Net profit rose 14 per cent to €74.4m, whilst consolidated sales for the group stood at €482.5m, up 9 per cent on a like-for-like basis.
The Tod’s portfolio, which also includes shoe labels Hogan, Fay and Roger Vivier, saw sales grow by 30 per cent in North America, and by 55 per cent in Asia and the rest of the world, excluding Europe.
While not offering a breakdown of quarterly results on Wednesday, the company said it had achieved a “significant acceleration” in the second quarter, driven by the Tod’s brand and “outstanding results achieved” by the group’s directly operated stores network, which accounts for 56.7 per cent of revenues.
In Italy, overall sales dropped by 12 per cent to €199m as the country’s sovereign debt crisis continues to batter its economy and consumer confidence. The group’s domestic market is also its largest, representing some 42 per cent of sales, leading some analysts to question whether Tod’s robust growth could maintain momentum into the next quarter. The group remained upbeat, citing a tax decrease of 300 basis points from its 2011 rate owing to increased foreign sales as a positive indicator of ongoing profitability.
“I am very confident that the second-half of the year will also achieve good results,” said Diego Della Valle, chief executive.