(Adds details and quotes from CFO)
By Giulia Segreti and Claudia Cristoferi
MILAN, Sept 14 Italian luxury goods maker Tod's
said on Wednesday it confirmed full year market
expectations, despite a fall in core profits and net income in
the first six months of the year.
The group has struggled in recent years as it sought to
broaden the range of products offered and, like other companies
in the luxury sector, it is now grappling with weaker spending
in China and falling consumption by tourists.
"We are not, for the moment, modifying our position as far
as consensus is concerned ... we do not see a reason to change
the expectations," said Chief Financial Officer Emilio Macellari
in a call with analysts on financial results.
The company said Macellari was referring to a consensus
full-year revenue forecast by analysts of 1.019 billion euros,
just marginally below the 1.020 billion euros generated last
In the first six months of the year, earnings before
interest, tax, depreciation and amortisation (EBITDA) fell by 16
per cent to 86.3 million euros ($97 million), just under
analysts' forecasts of around 87 million euros, according to
Thomson Reuters data.
Net income was down to 37.4 million euros, in line with
Sales in the first half of the year stood at 498 million
euros, down 3.4 percent year-on-year, the group said in July.
The company's Tod's brand and its leather goods and
accessories, suffered the most due to fewer purchases being made
by tourists travelling to Europe and the United States.
Macellari explained that the group would not change its
positioning on the market, despite the departure of Alessandra
Facchinetti as creative director in May.
He said Tod's would focus on middle range of its core,
well-known products, with bags priced between 1,400 and 1,500
euros, rather than on the higher-end of the range.
"Our focus is on that part of the offer that is closer to
what is expected by our target clients, not on the high segment
but on the medium one," said Macellari.
($1 = 0.8880 euros)
(Editing by Greg Mahlich)