Tod's shares Rise after Operating Profit Beat

FILE PHOTO: Models present creations from the Tod's Fall/Winter 2023/2024 collection during Fashion Week in Milan, Italy, February 24, 2023. REUTERS/Alessandro Garofalo/File Photo
FILE PHOTO: Models present creations from the Tod's Fall/Winter 2023/2024 collection during Fashion Week in Milan, Italy, February 24, 2023. REUTERS/Alessandro Garofalo/File Photo
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Tod's shares Rise after Operating Profit Beat

FILE PHOTO: Models present creations from the Tod's Fall/Winter 2023/2024 collection during Fashion Week in Milan, Italy, February 24, 2023. REUTERS/Alessandro Garofalo/File Photo
FILE PHOTO: Models present creations from the Tod's Fall/Winter 2023/2024 collection during Fashion Week in Milan, Italy, February 24, 2023. REUTERS/Alessandro Garofalo/File Photo

Shares in Tod's rose as much as 5% on Thursday after the Italian luxury group's first half operating profit more than tripled compared to the same period of last year, beating analysts expectations.

Earnings before interest and taxes (EBIT) reached 60 million euros ($64.3 million) in the January-June period, led by growth in sales and a more favorable product mix, Reuters quoted the group as saying in a statement.

Given the better-than-expected results, the group has scope to beat the current analysts' consensus on full year sales and operating profit, Chief Financial Officer Emilio Macellari said in a post results conference call on Wednesday evening.

Analysts expected sales to reach 1.147 billion euros and EBIT to total 85 million euros in 2023, according to a consensus published by the company on its website.

However, Macellari cautioned that profit growth in the second half will be hit by higher marketing expenses.

Sales grew 23% in the first six months of the year, driven by a strong performance in Greater China, as already indicated by preliminary data published in July.

Growth in sales returned to more normal levels in July and August compared to the aggressive rate seen in the previous months, Macellari added.

This applied both to China and Europe. In the latter, tourist demand was still strong, but the domestic consumption was weaker, he added.

The group is also confident it will find a substitute for its creative director Walter Chiapponi, who will leave the company after this month's Milan fashion show, in time for its next collection, Macellari said.

He also pointed out that the new creative director is not expected to perform a "revolution" but rather an "evolution" of what Chiapponi started, supported by the internal team.



Boohoo Pushes Ahead with Debenhams Rebrand despite Frasers’ Opposition

Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
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Boohoo Pushes Ahead with Debenhams Rebrand despite Frasers’ Opposition

Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)
Debenhams logo is seen on smartphone in front of a displayed Boohoo logo in this illustration taken January 25, 2021. (Reuters)

British online fashion retailer Boohoo said on Friday it would rebrand as Debenhams Group even though opposition from top shareholder Frasers meant the name change for its holding company did not get shareholder approval.

At a general meeting, 62.04% of votes cast supported the official name change, falling short of the required 66% of votes, the company said.

"This general meeting was only related to the technical name change of the ultimate holding company," the company told Reuters in an email.

"While this will now remain the same, the company is absolutely moving forward as Debenhams Group."

Boohoo had announced its rebranding earlier this month.

Frasers, which owns just over 29% of Boohoo shares based on LSEG data, voted against the resolution.

Frasers, majority-owned by British retail tycoon Mike Ashley, in January unsuccessfully tried to oust Boohoo's co-founder from the board, and the companies have been involved in a long-running corporate tussle.

Boohoo, boosted by an online shopping surge during the coronavirus pandemic, has been facing supply chain issues, weak demand and stiff competition from e-commerce firms such as Shein and Temu.

The company has said it sees the Debenhams brand having the potential to achieve multi-billion pound gross merchandise value in the medium term.

In March, Boohoo appointed Phil Ellis, Debenhams' finance director, as its CFO, following the appointment of Dan Finley as the group's CEO late last year.