Tod’s Share Price Soars Amidst News of Della Valle Family’s Increased Stake
The luxury fashion industry was abuzz on Wednesday as Tod’s shares skyrocketed by more than 12 percent following the announcement that the Della Valle family, who already holds a majority stake in the company, plans to further increase their ownership. This surge in share price came after it was revealed in a regulatory filing that a holding company linked to Chairman Diego Della Valle was set to purchase up to 5 percent of Tod’s shares.
In a strategic move, one of the Della Valle family’s holdings entered into an agreement with Credit Agricole Corporate and Investment bank to acquire as many as 1.7 million shares of Tod’s. Currently, the family already controls about 60 percent of the renowned Italian brand famous for its luxury shoes and leather goods. Addressing recent rumors of a potential sale of the group, Della Valle put them to rest by affirming that their primary focus was on increasing their stake, not divesting from the company.
The market reacted positively to this news, propelling Tod’s shares to 42.02 euros by 1430 GMT, outstripping the 1.5 percent rise in Milan’s blue-chip index. The surge in share price was a welcome relief for the company, especially after its shares had dropped to 36.9 euros the day before, marking a low point not seen since June 2009.
Despite facing challenges and acknowledging declining sales in November, Tod’s remains optimistic about its turnaround efforts. The brand’s new strategy, unveiled earlier in the year, centers on diversifying its collections and reintroducing classic styles to revitalize its image and attract customers. With expectations high for a positive impact in the second half of 2018, Tod’s continues to strive for success in the competitive luxury fashion market.
