In a recent announcement, Tod’s, the esteemed Italian luxury shoemaker, has vowed to persist in investing resources to promote its renowned brands despite a decrease in sales. The family owners, the Della Valle family, remain resolute in their decision not to take the company private, even in the face of current market challenges.
Renowned for its iconic Gommino loafers that fetch a price of 450 euros per pair, Tod’s has been diligently working on rejuvenating its brands to stand out in the fiercely competitive market and bolster its sales. The group recorded a decline in sales to 454.6 million euros in the first half of this year, marking a 4.7% drop from the same period last year. Sales from directly-owned stores also decreased by 4.5%.
Encouragingly, the retail channel saw a 6.5% increase in sales, largely fueled by the company’s online platform. CFO Emilio Macellari expressed optimism that the full-year results would mirror those from the first half, a departure from earlier concerns regarding meeting 2019 expectations.
The Della Valle family, spearheaded by Chairman and CEO Diego Della Valle, currently holds a commanding 64% stake in the company, which also encompasses prestigious brands including Hogan, Fay, and Roger Vivier. Della Valle reiterated the family’s steadfast adherence to their Tod’s strategy and signaled an intent to continue purchasing company shares.
Recognizing the vital need to attract a younger demographic in emerging markets, Della Valle stressed the necessity for escalated investments to amplify the brand’s visibility. Macellari confirmed the family’s non-consideration of privatizing the company.
In response to queries regarding their confidence in Tod’s future, CEO Umberto Macchi di Cellere reiterated the family’s unwavering belief in the brand’s potential, stating, “The family is very convinced that this is definitely not a lost battle at all.” Despite reporting a net loss of 6 million euros, Tod’s remains resolute in its positive outlook and determination to succeed.
To learn more about Tod’s and its iconic products, visit their official website here. Additionally, for updates on the latest luxury fashion trends, explore Fashion Week Online’s coverage here.
