Apr 12, 2021
Share price for Tod’s flies after Chiara Ferragni joins board
Apr 12, 2021
On Friday, the share price of Italian fashion group Tod’s on the Milan Stock Exchange was strongly on the upswing, the market saluting the appointment of social media celebrity and entrepreneur Chiara Ferragni to the board of directors of the Tod’s group, part of Tod’s strategy to appeal to a younger audience.
The share price for Tod’s, which was previously capped, gained more than 12% at about 12.20 GMT, reaching €32.24, the highest value since March 2020. Chiara Ferragni, 33, is an Italian fashion influencer and entrepreneur whose Instagram account dispenses style tips to over 23 million followers. “Chiara’s knowledge of the world of young people will certainly be extremely valuable,” said Diego Della Valle, founder of and main shareholder in the Tod's group.
Tod’s was once chiefly known for its driving shoes. At the end of 2017, the group deployed a new strategy to rejuvenate its brand image, but was adversely affected by the Covid-19 crisis. Sales slumped by nearly a third in 2020, the group’s fifth consecutive annual downturn, owing to lockdown measures and the decline of leisure travel.
“Ferragni’s appointment to the board of Tod’s will translate into better visibility for the brand, and investors are hoping that this will help the group’s sales recover in what is currently a tough market situation,” said a trader in Milan.
In the 2020 financial year, sales for the Tod’s group, owner of Tod’s, Roger Vivier and Hogan, fell by over 30% compared to 2019, down to €637 million, with an operating loss of €135 million. A year earlier, the group had posted an operating income of €101 million.
With Reuters (Claudia Cristoferi, French version by Marc Angrand)
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