Italy’s Tod’s optimistic on 2022 after beating FY profit forecast

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People walk past a Tod's shop in downtown Rome

MILAN – Italian fashion group Tod’s expressed optimism for 2022 despite global uncertainties after returning to an operating profit last year.

The leather goods maker beat market expectations on Thursday with earnings before interest and taxes (EBIT) of 24.2 million euros ($26.6 million) versus a 3 million euro analyst forecast in a company-provided consensus.

Tod’s, however, still posted a net loss last year of 5.9 million euros.

“Year-to-date sales trends in our stores are very good, confirming the growing appreciation of customers for both our brands and products,” founder and main shareholder Diego Della Valle said.

The group said it decided not to pay any dividend.

Tod’s, famous for its Gommino loafers, launched a new strategy in late 2017 to revamp its brands, but the health crisis has delayed results.

Earlier this year it said it had posted a strong sales recovery in 2021, marking the first revenue increase after five years of consecutive declines.

($1 = 0.9086 euros)

(Reporting by Claudia Cristoferi; Editing by Keith Weir)