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LVMH raises stake in Tod's

By Kristopher Fraser

23 Apr 2021



Luxury conglomerate LVMH is raising its stake in Tod’s to 10 percent. In a statement, Tod’s said that LVMH would buy a 6.8 percent stake from Tod’s founder and chairman Diego Della Valle. LVMH chairman Bernard Arnault already owned a 3.2 percent stake in Tod’s.

“Through this transaction, the 20-year friendship between the Arnault and Della Valle families is reinforced”, Tod’s said in a statement.

Diego Della Valle is already a member of LVMH’s board of directors, having joined in 2002. The increased stake LVMH is taking in Tod’s is seen as a bit of a bailout. Tod’s was hit harder than some of its competitors from the COVID-19 lockdowns. The company is also having a harder time rebounding than some of its competitors, and they are currently in their fifth year of falling sales.

Tod’s has been working on better positioning itself to attract younger consumers. Social media influencer Chiara Ferragni joined Tod’s board earlier this month and is expected to help the brand better position itself with millennials.

Share’s in Tod’s jumped over 16 percent after LVMH agreed to up its stake to 10 percent. Analysts are speculating that LVMH could raise its stake further as the luxury conglomerate works on expanding its portfolio, although they are currently focused on their multibillion dollar acquisition of Tiffany & Co.