Mar 14, 2011
Download the article
Click here to print
Text size
aA+ aA-

Tod's hikes dividend after strong US, Asian sales

Mar 14, 2011

MILAN, March 14 (Reuters) - Italian luxury leather goods maker Tod's (TOD.MI) hiked its dividend by one third and forecast an excellent 2011 after strong demand in the United States and Asia.

Campagne Tod's

Analysts expect a wave of consolidation in the luxury industry following French group LVMH's (LVMH.PA) purchase of Italian jeweller Bulgari (BULG.MI). Tod's, jeweller Tiffany (TIF.N) and Burberry BRBY.MI are singled out as possible takeover targets.

Tod's, the world's fourth-biggest footwear maker by market value, posted 2010 net income of 110.8 million euros ($154.4 million), up 29 percent from the year before.

A Thomson Reuters I/B/E/S poll had forecast net profit of 108 million euros.

"I am confident that our group will achieve excellent results also in the current year," Chairman and Chief Executive Diego Della Valle said.

He cited a strong start to the spring/summer season in Tod's stores and "positive signals" at the beginning of fall/winter orders.

Tod's will pay a dividend of 2 euros, up 33 percent, after sales in the United States rose 15 percent. Asian sales were up 30.5 percent.

The stock was up 1.3 percent at 77.1 euros at 1441 GMT, recovering from earlier losses sparked by fears over its exposure to Japan following the country's devastating earthquake.

Milan's FTSE MIB was flat.

(Reporting by Ian Simpson; Editing by Erica Billingham) ($1 = 0.7177 euro)

© Thomson Reuters 2022 All rights reserved.