Creative directory that relaunches the brand. Along with a financial strategy that ensured the fundamentals during a difficult period. Diego Della Valle relaunches Tod’s and consolidates his holding by following a path that started with Walter Chiapponi and has been enriched during the last Milano Fashion Week. The group’s good basis, meanwhile, have allowed it to be stable on the stock exchange and be favored by banks.
Della Valle relaunches Tod’s
“Spontaneity and emotions are added value”, said Mr. Chiapponi, creative director of Tod’s and lead of T-Factory, as reported by Vogue. After the (digital) presentation, the stylist defines this as “an effective way to transmit the soul of the collection, which can’s be reduced to the simple representation of the products”. Mr. Chiapponi plans on articulating the brand’s future by joining craftsmanship with iconic brand elements: “An eccentric, yet spontaneous reading – he says -, that is always personal and truly made by humans”.
Financial situation
Beside from stylistic priorities, Tod’s is also looking at its finances. The group closed the firt semester with revenue down by 43%, but now, points out the Finance section of La Repubblica, Mr. Della Valle claims to have been “prudent with finances”, which will allow him to have “the trust of banks that will continue to support the brand”. On one side, the entrepreneur has recently decided to divest (almost all) activities that were of marginal interest to him, such as the Cinecittà theme park and Fiorentina (football club). On the other side he consolidated ownership of the brands via 5 subsidiaries of which the family is owner. Diego Della Valle & C. bought 3.2 million shares of the group with an investment of 138 million euro. This way, the former is now the owner of 19.4% of the Tod’s group, which is to be added to the 50.3% tied to DI.VI., another fund owned by the family.
Assets
Reading the 2019 balance sheet, the Finance section of La Repubblica, the Italian entrepreneur set aside 250 million of profits from the 5 financial subsidiaries. And more. When the fiscal year was closed and approved, Mr. Della Valle put the 15.7 million profits from DI.VI as reserve for Tod’s: this way, Mr. Della Valle strengthened the net equity position of the 5 holdings, which is now of 1.31 billion euro.
On the left, Diego Della Valle (Imagoeconomica); to the right, one of the models presented at the recent Milano Fashion Week (photo taken from vogue.it)
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