Tod's sees 'excellent' start of season after beating FY profit forecasts

MILAN (Reuters) -Italian fashion group Tod's said on Monday it had an excellent start of the season as it posted higher-than-expected operating profits for last year.

The leather goods maker's earnings before interest and taxes (EBIT) were 58.2 million euros ($62.5 million) in 2022 versus a 47-million-euro analysts' forecast in a company-provided consensus.

"Considering the excellent start of the season in our stores and the solidity of the order book for next season, we are very confident about the group's future results", founder and main shareholder Diego Della Valle said in a statement.

He added that the group expects growth in turnover in the medium term and very satisfactory profitability.

The group decided not to pay dividends despite returning to profit in 2022, with a net result of 23.1 million euros versus a loss of 5.9 million euros in 2021.

In January, the group reported 2022 sales of just over 1 billion euros, up 10% compared to pre-pandemic levels, lifted by strong growth in its main namesake brand despite COVID curbs in China.

The founding family of the Italian luxury shoemaker, the Della Valles, last year ditched a plan to delist the company after its initial buyout failed to meet the required threshold of support.

The de-listing was the Della Valles' latest attempt at revamping a group that built its name on craftsmanship but has struggled, like other Italian names, to appeal to younger shoppers in recent years.

($1 = 0.9314 euros)

(Reporting by Elisa Anzolin, editing by Alvise Armellini and Christina Fincher)