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.



Adidas Posts Forecast-Beating Quarterly Profit on Strong Sneaker Demand

Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
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Adidas Posts Forecast-Beating Quarterly Profit on Strong Sneaker Demand

Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)
Adidas products are displayed at the company headquarters in Herzogenaurach, Germany March 5, 2025. (Reuters)

German sportswear and apparel maker Adidas on Wednesday reported first-quarter sales and profit above expectations, citing growth across all its markets and channels.

First-quarter operating profit jumped 82% to 610 million euros ($692 million), the group said, resulting in a margin of 9.9%. Analysts, in a company-provided consensus, had expected a margin of 8.9% and profit of 546 million euros.

The success of sneakers including Samba and Gazelle has helped Adidas gain further market share from US rival Nike as well as maintain a competitive advantage over newer sportswear brands like On Running and Hoka in uncertain times.

Chief Executive Bjorn Gulden has turned Adidas around since the brand cut ties with rapper Ye and scrapped its lucrative Yeezy sneaker line in October 2022, with the last Yeezy inventories sold at the end of 2024.

First-quarter sales rose 13% to 6.15 billion euros, also higher than the 6.095 billion consensus, Adidas said, adding that excluding sales from the Yeezy line a year earlier quarterly revenue of the Adidas brand was up 17%.

Frankfurt-listed shares in Adidas, which is scheduled to release final first-quarter results on April 29, were 6.2% higher at 1702 GMT.