Tod’s posts 23% rise in sales thanks to China

Italian leather goods group Tod’s on Wednesday expressed confidence in its first-half profits as it reported a 23% yearly rise in revenues net of currency swings, driven by a strong performance its main market Greater China.

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Tod’s said sales totalled 574 million euros ($636 million) in January-June with crown jewel Roger Vivien growing 30% and Tod’s itself rising to 287 million euros up from 234 million a year before.

Sales in Greater China rose 45% to 196 million euros at constant currencies, with the Americas the only area that recorded a small decline in revenue.

The impact of currencies was negative for 5 million euros.

“We are confident on the profitability of the semester and on the results for the full year, despite the uncertainty and volatility of the macro-economic context at an international level,” CEO Diego Della Valle said.

Tod’s, which founder Della Valle has in vain tried to take private by buying out minority investors, said tourism and local demand supported the European markets while Japan had also performed particularly well.

Tod’s said the retail channel, which represents more than 75% of the Group’s turnover, accelerated slightly in growth at constant exchange rates, compared to the first few months of the year.