Tod’s experienced a significant surge in its shares, rising up to 16%, following the announcement from LVMH, the French multinational luxury goods conglomerate, that it plans to increase its stake in the Italian luxury brand. LVMH has agreed to purchase a 6.8% holding from Tod’s founder and Chairman Diego Della Valle, adding to the group’s existing 3.2% stake.

Della Valle expressed his optimism about the collaboration, indicating that it could lead to future opportunities. This has sparked speculation that LVMH might further increase its stake in Tod’s.

People familiar with the matter have described LVMH’s decision as “friendly support” for Tod’s, a brand that has been facing challenges in the luxury leather goods market. While Tod’s brand portfolio includes renowned names like Roger Vivier, insiders suggest that LVMH may not currently have plans to exceed a 10% stake in the company.

Despite this, analysts believe that LVMH could potentially raise its stake in Tod’s even higher. Citi analysts have commented that if this transaction reinforces a long-standing friendship between Della Valle and Arnault, it could signal further moves and potentially result in LVMH helping Della Valle take Tod’s private in the future.

LVMH’s decision to increase its stake in Tod’s is seen as a vote of confidence in the brand’s potential for growth. It also highlights the ongoing interest of major luxury conglomerates in investing in and partnering with established luxury brands. Tod’s, known for its high-quality leather goods, is likely to benefit from LVMH’s expertise and resources, opening doors for future expansion and strategic developments.

In the face of a challenging luxury market, Tod’s has been seeking ways to enhance its brand presence and drive sales. The partnership with LVMH could provide the necessary support and guidance for Tod’s to navigate these obstacles and emerge stronger.

Overall, the market has responded positively to LVMH’s increased stake in Tod’s, resulting in a substantial rise in the brand’s shares. Investors and industry observers will closely monitor any further developments or potential moves between the two luxury giants, as well as the impact this collaboration will have on Tod’s future.

For further information on Tod’s and LVMH, please visit:
Tod’s Official Website
LVMH Official Website