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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.
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“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%.
Lire aussi >TOD’S LAUNCHES NEW SIGNATURE BAGS INSPIRED BY THE PRINTS LEFT BY THE GOMMINO MOCCASIN
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