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Caution remains the key word for Tod’s president and CEO. Given the significant drop in the Italian fashion house’s revenues in the first quarter of 2020 and the uncertainties hanging over the fashion industry, Diego Della Valle is rightly opting for a strategy of prudence. Reducing capital expenditure, restricting productive activities, optimising efficiency: the entrepreneur is implementing a real crisis exit strategy to limit as far as possible the economic and societal damage in the post-coronavirus era.
“The world has stopped, everything has changed and, as a consequence, the objectives and priorities have also changed within the group. […] With very uncertain and unforeseeable visibility in the next few months, we have chosen to adopt a strategy of great prudence“.
In clear and unadorned terms, CEO Diego Della Valle presented his strategy to Tod’s shareholders yesterday, Wednesday, June 3, at the meeting of the Board of Directors to approve the group’s accounts and financial statements for 2019.
The owner of the fashion group then took the opportunity to clearly set out his wishes and dictate the line to be followed for the second half of the year and 2021: “The objective will be to avoid injecting too much product on the market, to avoid having too much merchandise in the stores, which would be difficult to sell, in case consumer spending restarts in a slower way than expected“.
The objective is therefore to anticipate consumer trends to avoid overstocking and unsold goods.
Diego Della Valle thus wants to adapt supply to demand in order to control production and reduce the impact of the crisis in the production system on the Italian brand.
The CEO of the luxury group has also advocated cost-cutting measures: after having waived his remuneration for the year 2020 (his salary amounted to around 1.8 million euros) and the distribution of dividends in view of the global coronavirus epidemic, Della Valle has announced a 30% reduction in capital expenditure.
He is also aiming to improve efficiency in the future and to increase the skills and performance of the group, which includes the Tod’s, Hogan, Fay and Roger Vivier brands, in particular “by strengthening its image and the values of craftsmanship“.
A policy of economy and efficiency that will enable the group to recover after its poor results at the beginning of the year (during the first quarter, Tod’s revenues fell by nearly 30% to 152.8 million euros) even if Emilio Macellari, the CFO, is far from claiming victory: “The impact will be significant but too early to quantify. We don’t know how and when we will return to the new normality.”
The Italian luxury shoemaker Tod’s and its CEO remain very cautious and choose a soft recovery to avoid the repercussions of the crisis.
However, they continue to be responsive to market trends and the evolution of economic and social activities: “The attitude remains one of great caution, but ready to react immediately as soon as the markets will show positive signs of recovery“.
Read also > Tod’s sales dropped nearly 30% in the first quarter
Featured photo : Diego Della Valle[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”not-logged-in”][vc_column][vc_column_text]
Caution remains the key word for Tod’s president and CEO. Given the significant drop in the Italian fashion house’s revenues in the first quarter of 2020 and the uncertainties hanging over the fashion industry, Diego Della Valle is rightly opting for a strategy of prudence. Reducing capital expenditure, restricting productive activities, optimising efficiency: the entrepreneur is implementing a real crisis exit strategy to limit as far as possible the economic and societal damage in the post-coronavirus era.
“The world has stopped, everything has changed and, as a consequence, the objectives and priorities have also changed within the group. […] With very uncertain and unforeseeable visibility in the next few months, we have chosen to adopt a strategy of great prudence“.
In clear and unadorned terms, CEO Diego Della Valle presented his strategy to Tod’s shareholders yesterday, Wednesday, June 3, at the meeting of the Board of Directors to approve the group’s accounts and financial statements for 2019.
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[/vc_cta][vc_column_text]Featured photo : Diego Della Valle[/vc_column_text][/vc_column][/vc_row][vc_row njt-role=”people-in-the-roles” njt-role-user-roles=”customer”][vc_column][vc_column_text]
Caution remains the key word for Tod’s president and CEO. Given the significant drop in the Italian fashion house’s revenues in the first quarter of 2020 and the uncertainties hanging over the fashion industry, Diego Della Valle is rightly opting for a strategy of prudence. Reducing capital expenditure, restricting productive activities, optimising efficiency: the entrepreneur is implementing a real crisis exit strategy to limit as far as possible the economic and societal damage in the post-coronavirus era.
“The world has stopped, everything has changed and, as a consequence, the objectives and priorities have also changed within the group. […] With very uncertain and unforeseeable visibility in the next few months, we have chosen to adopt a strategy of great prudence“.
In clear and unadorned terms, CEO Diego Della Valle presented his strategy to Tod’s shareholders yesterday, Wednesday, June 3, at the meeting of the Board of Directors to approve the group’s accounts and financial statements for 2019.
[…][/vc_column_text][vc_cta h2=”This article is for subscribers only.” h2_font_container=”font_size:16″ h2_use_theme_fonts=”yes” h4=”Subscribe now!” h4_font_container=”font_size:32|line_height:bas” h4_use_theme_fonts=”yes” txt_align=”center” color=”black” add_button=”right” btn_title=”I SUBSCRIBE!” btn_color=”danger” btn_size=”lg” btn_align=”center” use_custom_fonts_h2=”true” use_custom_fonts_h4=”true” btn_button_block=”true” btn_custom_onclick=”true” btn_link=”url:https%3A%2F%2Fluxus-plus.com%2Fen%2Fabonnements-et-newsletter-2%2F|||”]Unlimited access to all the articles and live a new reading experience, preview contents, exclusive newsletters…
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[/vc_cta][vc_column_text]Featured photo : Diego Della Valle[/vc_column_text][/vc_column][/vc_row]
