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Tod's FY15 earnings go down yet dividends improve

By Angela Gonzalez-Rodriguez

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Business |ANALYSIS

The famous shoemaker has closed its fiscal year 2015 earning less, with profit decreasing to 92.7 million euro. However, Tod’s has treated shareholders with a stronger dividend based on the capital increase made in January to complete the acquisition of Roger Vivier.

Tod's closes 2015 with a net profit of 92.7 million in the 4.5 percent decline, but the board of directors proposed a dividend of 2 euro per share, keeping the company’s value range from last year.

"Given the good financial position of the group – explained the president and CEO at Tod’s, Diego Della Valle - we wanted to confirm the dividend from last year, despite the higher number of shares resulting in the capital increase related to the acquisition of the Roger Vivier brand, approved in January."

Tod’s CEO profits on strong annual dividend

As a result of the dividend’s improvement, the company’s president and CEO, Diego Della Valle, who owns just over 60 percent of the securities, will get a 40 million euro check.

Tod's group’s financial position was positive at the close of 2015 and amounted to 134.2 million euro, a slight increase from the end of 2014’s sheet. Group’s revenues rose by 7.4 percent to 1,037 million euro, while the gross operating margin (EBITDA) amounted to 202.6 million (adding up 4.7 percent).

Commenting the results, De la Valle has wanted to emphasise that Tod's has "produced good results even in a generally difficult context and with poor visibility. We are pleased with the positive performance from all our brands, of all regions, with the exception of Hong Kong."

Looking ahead, the retailer’s goal is "to strengthen more and more the lifestyle of the brand and its inspiration, linked to Italian style and product quality, ll things very much liked by our international customers.”

“We believe - said Della Valle - that this, combined with strong attention to costs, a larger expansion of the digital channels and the good welcome to the summer collections now in stores, will allow us to achieve good results also for this year."

Tod's