Tod's swings to H1 profit as revenue surpasses pre-pandemic levels

Italian luxury group Tod’s has swung to a first-half profit as its revenue surpassed pre-pandemic levels from 2019.

In the six months to June 30, consolidated sales came in at 467.5 million euros, up 17 percent from the prior year period.

Breaking it down by brand, sales at the group’s namesake label were up 24 percent to 233.5 million euros, at Roger Vivier they were up 5 percent to 118.7 million euros, at Hogan they were up 18 percent to 95 million euros, and at Fay they were up 17 percent to 19.6 million euros.

Tod’s back in the black

The group swung to a net profit of 0.8 million euros in the first half of the year from a loss of 20.7 million euros a year earlier.

Tod’s CEO and chair Diego Della Valle said the board was “satisfied with these results, which confirm the appreciation for the outstanding positioning of our brands and the high quality of our products”.

But he added that the company continues to closely monitor international markets which are currently “difficult and full of unknowns”, and pay the “utmost attention to the evolution of costs related to energy, logistics and raw materials”.

He added: “We also consider as priorities the rationalization and efficiency of the distribution network and the development of the omni-channel channel, with the aim of increasing like-for-like and higher-margin turnover.”

The trading update comes after the group’s founding family last month announced plans to cash out 344 million dollars to take the business private.

The Della Valle brothers, who founded Tod’s back in 1978 and who currently own 64.5 percent of the business, have offered to buy its shares at 40 euros each, valuing the company at 1.32 billion euros.