Nov 14, 2013
Tod's CFO says 2013 EBITDA consensus hard to reach
Nov 14, 2013
MILAN, Italy - Italian luxury shoemaker Tod's said it would be difficult to meet consensus forecasts for full-year earnings as the company posted flat revenue and sales for the first nine months on Wednesday.
The lacklustre results and economic woe at home in Italy meant analyst consensus estimates of 266 million euros ($356.56 million) in earnings before interest, tax, depreciation and amortisation (EBITDA) would be hard to reach, Emilio Macellari said on a conference call.
But Macellari was more positive about reaching a consensus forecast for a 26 percent EBITDA margin, broadly in line with the previous year.
"In terms of the percentage of revenues I am more confident that we can do it," Macellari said.
Tod's, known for its 300-400 euro leather loafers, posted nine-month net revenue of 752.6 million euros ($1.01 billion), up 0.4 percent from the year before.
Company chairman Diego Della Valle said in a statement he confirmed the company's expectations "to keep on growing in sales and profits".
Sales in recession-hit Italy, Tod's main market which contributes about 35 percent of total turnover, dropped 18.5 percent year-on-year to 260.8 million euros ($349.59 million).
The fall in Italian sales is partly due to changes in the company's wholesale distribution network, Tod's said in a statement, adding that its directly-operated stores performed positively in Italy in the third quarter.
Tod's said all other markets apart from Italy grew during the first nine months. Sales in Greater China jumped 28 percent to 180.0 million euros ($241.28 million), despite a slowdown in mainland China.
Sales grew 13.6 percent in the Americas, an area which consultancy Bain & Co expects to beat China as the world's biggest luxury market in 2013.
Tod's opened 24 new shops in 2013 and will add around two more before the end of the year before opening about 15 more in 2014, Macellari said.
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