French luxury goods group LVMH plans increase its stake in fashion company Tod’s to 10 per cent.
As per Fashion Network, LVMH plans to buy a 6.8 per cent stake from Tod’s founder and Chairman Diego Della Valle. The Italian luxury leather goods maker has performed worse than most rivals as a result of the coronavirus pandemic in 2020. Its January sales had fallen by almost a third last year, marking the fifth year in a row of falling annual sales.
The group, known for its loafer shoes, launched a new strategy in late 2017 to revamp its brand and lure younger consumers, but the health crisis has hampered its efforts. Earlier this month, Italian influencer Chiara Ferragni joined its board, in a move that pushed its shares sharply higher and was seen as a bid to rejuvenate its image.
There has been recurring market speculation that Tod’s could be the target of a takeover by a bigger group, although Della Valle, who has increased his stake in the company in the past couple of years, has repeatedly denied this possibility.
