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.



e.l.f. Cosmetics Acquires Hailey Bieber’s Rhode Beauty Brand for $1 Billion 

Hailey Bieber poses during the Met Gala, an annual fundraising gala held for the benefit of the Metropolitan Museum of Art's Costume Institute in New York City, New York, US, May 5, 2025. (Reuters)
Hailey Bieber poses during the Met Gala, an annual fundraising gala held for the benefit of the Metropolitan Museum of Art's Costume Institute in New York City, New York, US, May 5, 2025. (Reuters)
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e.l.f. Cosmetics Acquires Hailey Bieber’s Rhode Beauty Brand for $1 Billion 

Hailey Bieber poses during the Met Gala, an annual fundraising gala held for the benefit of the Metropolitan Museum of Art's Costume Institute in New York City, New York, US, May 5, 2025. (Reuters)
Hailey Bieber poses during the Met Gala, an annual fundraising gala held for the benefit of the Metropolitan Museum of Art's Costume Institute in New York City, New York, US, May 5, 2025. (Reuters)

e.l.f. Beauty has acquired Hailey Bieber's rhode skincare brand in a $1 billion deal, the companies said.

Bieber's rhode had $212 million in net sales in the 12 months that ended March 31. The company's products are only available online, but by the end of this year it plans to begin an in-store partnership with Sephora in North America and the UK.

Bieber, a model and the wife of singer Justin Bieber, will be rhode’s chief creative officer and head of innovation and also a strategic advisor to the combined companies.

Under the terms of the agreement, e.l.f. will acquire rhode for $600 million in cash and $200 million of newly issued shares of e.l.f. Beauty common stock. The deal also includes an additional potential earnout of $200 million based on the future growth of the brand over three years.