Tod's FY profit up 39% on higher sales, margins in 2005
31 Mar '06
3 min read
Finally, apparel revenues grew by 12.2 percent in 2005 and represented 15 percent of consolidated sales as of December 31st 2005.
In 2005 the Group posted double-digit growth of revenues in all the markets where it operates. Sales increased by 18 percent in Italy and by 15.1 percent in the rest of Europe; the impact of currency fluctuations is not significant in this area, which globally represents two thirds of the Group's turnover.
The US market achieved outstanding results: sales grew by 13.7 percent in 2005, showing the expected acceleration in the last quarter of the year. The Asian markets confirmed in the full year 2005 the excellent results, already posted in the previous months, consistently with the Group's internationalization strategy, which is currently focused on this area.
In 2005 revenues increased by 42.1 percent; as of December 31st 2005, Asian markets represented 14 percent of the Group's turnover, up sharply from the 11.8 percent figure of the previous year.
In line with the already commented strategy of expansion into the Asian markets, the Group is continuing its strategy of store openings. In the year 2005 the Group opened 15 franchised stores in this area, 4 of which in China.
The same store growth figure, calculated as the worldwide average of revenue growth rates reported by the DOS open as of January 1st 2004, was 13.6 percent in the full year 2005.
Diego Della Valle, President and CEO of Tod's Group, said, “The outstanding results released today confirm the effectiveness of the strategy in progress, which is fuelling a continuous growth of revenues and profits. As far as the current year is concerned, considering the positive signals from the store network and the strong success enjoyed by the winter collections, I'm confident that our Group will achieve a further significant growth of revenues and a more than proportional increase of margins.”
Tod's SpA - The Group's principal activities are designing, manufacturing and marketing of footwear, clothes, leather goods and related accessories. The Group markets its products under trade names such as Tod's, Hogan and Fay. It operates in Italy, other European countries, North America and other parts of the world.
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