Tod’s Shares Slump After Italian Shoemaker’s Sales Drop Worsens

Tod’s SpA shares fell the most in four months after the Italian maker of rubber-studded driving shoes reported a deterioration in same-store sales this year due to weak demand in markets such as China.

The stock fell as much as 7.3 percent to 90.20 euros Friday, making the biggest intraday drop since Nov. 13, and the shares were temporarily halted during the session. Sales in Tod’s own stores slumped 11 percent at constant exchange rates in the first 10 weeks of the year, the Sant’Elpidio a Mare-based company said Thursday.

The sales deterioration “is likely to disappoint and raise concerns over the feasibility of” matching consensus estimates, including for 2015 sales growth of 5.5 percent, said Citigroup analyst Thomas Chauvet. He estimates Tod’s same-store sales fell 2 percent to 3 percent in the last eight weeks of 2014.

Tod’s contrasts with Salvatore Ferragamo SpA, another Italian luxury shoemaker, which said Thursday that sales trends in the first months of the current year justify expectations for 2015 growth as it reported profit that exceeded estimates. Ferragamo shares gained 1.3 percent to 28.90 euros as of 9.26 a.m. on Friday, after earlier surging as much as 5.2 percent.

Tod’s was hampered by the later timing of the Lunar New Year and delays in supplies of new and existing products in stores in January and February, Tod’s Chief Financial Officer Emilio Macellari said Thursday.

The company “faces an uphill climb in” 2015, Deutsche Bank analyst Francesca Di Pasquantonio said in a note to clients.

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