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Tod's shares jump 12% after first sales rise in six years

A shopping bag from the luxury brand Tod's is seen along Rodeo Drive in Beverly Hills

MILAN (Reuters) - Shares in Tod's jumped more than 12% on Wednesday after the Italian luxury fashion group beat forecasts with its first increase in annual sales since 2015.

Boosted by strong fourth-quarter growth in Europe and the United States, revenues rose almost 40% to 883.8 million euros ($997 million) last year, just below pre-pandemic levels, the luxury leather goods maker said on Tuesday.

That compared with analysts' average forecast of 842 million euros, according to a company-provided poll.

The sales figures will allow Tod's to report positive earnings before interest and tax (EBIT) for the 2021 fiscal year, Chief Executive Diego Della Valle said.

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Jefferies said that was a welcome surprise given analysts' consensus forecast for a 6 million euro loss in 2021.

"This implies second-half profitability above 2019 levels," the broker added.

The COVID-19 pandemic triggered a revenue drop of almost 33% for Tod's in 2020, making it among the worst performers in the luxury industry.

Many luxury groups are emerging strongly from the pandemic as cooped-up shoppers treat themselves with high-end purchases.

Tod's will release full results on March 10.

Its shares were up 12.63% at 1106 GMT, outperforming Italy's all-share index, which was up 2.2%.

($1 = 0.8862 euros)

(Reporting by Cristina Carlevaro; Editing by Mark Potter)