Italian fashion brand Tod’s has exceeded analysts’ expectations by reporting excellent operating profits for the previous year. The company’s earnings before interest and taxes (EBIT) for 2022 amounted to €58.2 million ($62.5 million), surpassing the forecasted €47 million. Founder and main shareholder, Diego Della Valle, is confident in the company’s future results based on the positive performance of its stores and a strong order book for the next season. Tod’s foresees growth in turnover in the medium term and expects to achieve satisfactory profitability.
Although Tod’s returned to profit in 2022 with a net result of €23.1 million, it has decided not to pay dividends. The company’s sales for 2022 surpassed €1 billion, marking a 10% increase compared to pre-pandemic levels. Despite the challenges posed by Covid-19 restrictions in China, the brand’s mainline performed strongly, contributing to this growth.
Last year, the Della Valle family, who founded Tod’s, abandoned plans to delist the company due to insufficient support for the buyout. This decision is part of ongoing efforts to revamp the brand, which has been struggling to attract younger consumers in recent years. Tod’s, known for its craftsmanship, aims to regain its appeal and capture the interest of the younger generation.
Useful links:
– Tod’s Reports Better-Than-Expected Operating Profits
– Tod’s Exceeds Expectations, Founder Confident in Future Results
