MILAN, Italy - Italian luxury shoemaker Tod's posted a larger-than-expected 21.6 percent fall in nine-month core earnings on Wednesday as it sold fewer higher margin products while costs rose.

Tod's, famous for its gommino loafers, said earnings before interest, tax, depreciation and amortisation (EBITDA) were $194.3 million in the January-September period, below analyst expectations of $209 million, according to Thomson Reuters SmartEstimates.

Chief Financial Officer Emilio Macellari told an analyst call that fourth-quarter core profit was likely to show no improvement from a year earlier after street protests in Hong Kong in October hurt sales in the former British colony.

Tod's generates about 10 percent of its sales in Hong Kong. Macellari said Tod's had seen a "high-single digit" decline in Hong Kong sales during the Chinese Golden Week this year.

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Normally, sales would post double-digit rises during the holiday that brings shoppers from mainland China, he said.

Tod's sales totalled 741 million euros in January-September, in line with analyst expectations and down 1.5 percent from a year earlier. Before accounting for currency swings, sales were broadly flat compared with the same period of 2013.

The company said same-store sales fell 7.8 percent in the 45 weeks to Nov. 9, a slight improvement compared to an 8.3 percent fall during the first 31 weeks but still far from the 3 or 4 percent growth Macellari said was necessary to avoid a contraction in annual profit margins.

Tod's is seeking to diversify from its core business of lower-margin shoewear. Sales of its best-selling models have suffered in recent months as it sought to promote its newer apparel and leather products in shops.

1 USD = 0.634028 GBP