Tod’s shares jumped 13.37% on the Milan stock exchange on Friday. Indeed, LVMH, the world leader in the luxury industry, announced yesterday Thursday that it was increasing its stake in the Italian brand to 10%. The French luxury group is talking about a “friendly support” to the famous Italian manufacturer in difficulty.
Tod’s said in a statement that LVMH would buy a 6.8% stake from Tod’s founder and chairman, Diego Della Valle. It should be remembered that LVMH, headed by Bernard Arnault, previously held 3.2% of Tod’s capital, compared to 10% today.
“With this transaction, the twenty-year friendship between the Arnault and Della Valle families is strengthened,” said Tod’s.
In 2017, the brand had already launched a new strategy to rejuvenate its image and attract the new generation, which is more and earlier concerned by the luxury sector. However, the global pandemic that occurred in 2020 put a huge damper on all of the brand’s relaunch efforts. Known for its iconic moccasins, the Italian House saw its turnover drop by 30.4% to 637.1 million euros in 2020. The cause was the effect of the coronavirus pandemic.
To further strengthen Tod’s image, the brand has called on the number one Italian influencer, Chiara Ferragni. At the beginning of April, Tod’s appointed the Italian influencer to its board of directors.
Chiara Ferragni, who has a global following of over 23.3 million, first made a name for herself with her blog The Blonde Salad, and then launched her own premium fashion brand, Chiara Ferragni Collections. Today, she collaborates with some of the world’s leading luxury brands and has even become their ambassador. She is currently an ambassador for brands such as Dior, Lancôme and Pomellato. Her entry into the board of directors will allow her to rejuvenate the image of the brand, in order to reach a younger clientele and ultimately increase its sales.
Voir cette publication sur Instagram
“This may be an excellent reason to consider other opportunities in the future,” Della Valle said of LVMH’s increased stake.
The price agreed by LVMH for the deal is 33.10 euros per share, 10% less than Tod’s share price, which closed Thursday at 35.30 euros.
At the end of the transaction, which is due to be finalised on 28 April, Diego Della Valle will hold 63.64% of Tod’s capital.
On Friday, Tod’s shares rebounded on the stock market. The stock jumped 13.37% after LVMH decided to increase its stake in the Italian fashion group to 10%.
Photo à la Une : © Press
What's Your Reaction?
[EN] CLAIRE DOMERGUE, A SPECIALIST IN COMMUNICATION IN THE LUXURY SECTOR, HAS SURROUNDED HERSELF WITH EXPERTS TO CREATE THE FIRST MEDIA DEDICATED TO THE ECONOMIC NEWS OF LUXURY AND FASHION. THE LATTER DRAWS THE ATTENTION OF ITS READERS TO ALL THE MAJOR PLAYERS IN THESE SECTORS WHO SHARE THEIR EXPERIENCES, VISIONS AND KNOW-HOW. MORE THAN A SPECIALIZED WEBZINE, LUXUS PLUS IS A MULTI-SECTOR INFORMATION SYSTEM, WHICH HAS BECOME THE REFERENCE MONITORING TOOL FOR LUXURY AND FASHION PROFESSIONALS. OUR NEWSLETTERS CONTRIBUTE TO MAKE OUR READERS AWARE OF THE CHANGES AFFECTING THE LUXURY INDUSTRIES. THANKS TO AN INCREASED WATCH AND AN EXCELLENT KNOWLEDGE OF THE SECTOR, WE ARE INTERESTED IN THE MAIN ECONOMIC AND TECHNOLOGICAL STAKES OF FASHION, FINE WATCHMAKING, JEWELRY, GASTRONOMY, COSMETICS, PERFUMES, HOTELS, PRESTIGIOUS REAL ESTATE...********[FR] Claire Domergue, spécialiste de la communication dans le secteur du luxe, s’est entourée d’experts pour créer le premier média consacré à l’actualité économique du Luxe et de la mode. Ce dernier attire tout particulièrement l’attention de ses lecteurs sur l’ensemble des acteurs majeurs de ces secteurs qui y partagent leurs expériences, visions et savoir-faire. Plus qu’un webzine spécialisé, Luxus Plus est un système d’information multi-sectoriel, devenu l’outil de veille de référence pour les professionnels du luxe et de la mode. Nos newsletters de veille contribuent en effet à sensibiliser nos lecteurs aux mutations qui touchent les industries du luxe. Grâce à une veille accrue et à une excellente connaissance du secteur, nous nous intéressons aux principaux enjeux économiques et technologiques de la mode, la haute horlogerie, la joaillerie, la gastronomie, des cosmétiques, parfums, de l’hôtellerie, l’immobilier de prestige…