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Tod's S.p.A.
Company typeSocietà per azioni (S.p.A.)
BIT: TOD
ISINIT0003007728 Edit this on Wikidata
IndustryFashion
Founded1920; 105 years ago (1920)
FounderFilippo Della Valle
Headquarters
Sant'Elpidio a Mare
,
Italy
Key people
Diego Della Valle
(Chairman), John Galantic (CEO)
ProductsLuxury goods
RevenueIncrease €1.1 billion (2023)[1]
Increase €94.7 million (2023)[1]
Increase €50.0 million (2023)[1]
Total assetsIncrease €4.3 billion (2023)[1]
Total equityIncrease €1.1 million (2023)[1]
OwnerDella Valle family (64.4%)[2]
Number of employees
5,123 (2023)[1]
ParentTod's Group
Websitetods.com todsgroup.com

Tod's S.p.A. is an Italian luxury fashion house specialized in footwear, apparel, and related accessories headquartered in Marche, Italy. Its core branding includes an oval nameplate and roaring lion, with signature brown and orange packaging. The company is an influencer in the Sprezzatura (Italian "casual chic") fashion movement. Its highest-selling products are pebble-sole “Gommino” driving shoes, leather (suede) loafers, boots, sneakers, and handbags.[3][4]

Founded in 1920 by Filippo Della Valle as a shoe cobbler, his grandson, Diego, commercialized the family business and launched their flagship store in their hometown. They expanded across Europe and the U.S. during the 1970s, reaching mainstream distribution during the 1980s and 1990s. During this time, Tod's was popularized by Hollywood celebrities, European royalty, including Diana, Princess of Wales, and corporate executives in New York.

The company is majority controlled by the founding Della Valle family. Its use of private financing throughout the 1990s saw to its listing on the Borsa Italiana in 2000, at a valuation of €1.2 billion. In 2021 Moët Hennessy Louis Vuitton (LVMH) raised its investment in the group from 3.2% to 10%. After an attempt to take the company private in 2022, Tod's Group entered into a privatization deal with private equity firm L Catterton in 2024. Tod's reported annual revenue of €883 million in 2021, with €1.0 billion reported in 2022.

Corporate information

History

Tod's light suede loafers with tassels, 2021

Filippo Della Valle started the shoemaking business out of his family home in the late 1920s. Diego Della Valle, the elder son of Dorino, and a grandson of Filippo, expanded the workshop and turned it into a factory that started manufacturing shoes in the 1970s.[5] As they grew in popularity during the 1980s, Diego brought in nascent marketing strategies, such as influencer marketing, to broaden their consumer base, starting with Yasmin Le Bon in 1998.[6][7] Diego named the company J.P. Tod's in 1978. From 1996, he started converting the company's signature stores in the United States to J. P. Tod's boutiques.[8] The brand later dropped the "J.P." in 1999 after the brand became inadvertently known as solely "J.P.'s" instead of the preferred Tod's.[9][10] He selected the name from a Boston, Massachusetts phonebook in an effort to Americanize the Italian brand and court high-end consumers in New York.[11][9]

They introduced the “Gommino” leather (suede) loafers in 1979 and their signature handbag collection in 1980. The shoe is widely viewed as a knockoff of the Original Car Shoe which was founded in 1963 and pioneered the driving loafer.[12][13] Both of these products gained favor with Hollywood celebrities, European royalty, including Diana, Princess of Wales, and corporate executives in New York.[14] Princess Diana sported Gommino loafers in various colors and carried a beige handbag the house later named after her – the Tod's Di Bag.[15][16] Vogue called Princess Diana the "poster girl" for the brand among royals,[15] while Italian industrialist Gianni Agnelli led to increased popularity among businessmen due to the shoe's quiet profile, according to Vanity Fair.[17] Tod's was further popularized among European royalty through King Juan Carlos of Spain, Princess Caroline of Monaco, and Catherine, Princess of Wales.[17]

In an effort to diversify the family's business interests, they launched two sister brands, Fay (in 1986) and Hogan (in 1988), later forming Tod's Group.[18][19] The former was overseen by Diego's son Emanuele, who appointed Karl Lagerfeld as a designer for a handful of collections.[20] Tod's Group subsequently bought 60% of Roger Vivier, the French shoemaker known for the stiletto heel, in 1995.[21] Tod's later acquired further stock in Roger Vivier for €415 million, growing their stake from 57.5% to 60.7%.[22] By late 1990s, Diego turned over the day-to-day operation of the business to Andrea, his younger brother.[23] Time described their family dynamic in 2006 with: "Andrea plays the goalie to Diego's striker, the introverted, behind-the-scenes power broker to Diego's extroverted, genial public persona."[24] Tod's sales increased from €220 million in 2000 to €371 million in 2003.[25] Tod's went public in November 2000, listing on the Milan Stock Exchange at a valuation of €1.2 billion.[4]

The Roger Vivier acquisition proved controversial with accusations that the Della Valle brothers had enriched themselves at the expense of shareholders. The brand's sales, virtually non-existent in 2003, reached €156m as the family sold it to Tod's for €435m.[26][27] The questionable acquisition created the need for a whitewash procedure.[26]

Tod’s was one of the few luxury companies worldwide to increase sales and profits through the 2007–2008 financial crisis, with profit growing from €83 million in 2008 to €86 million in 2009.[28] During the crisis they launched their eyewear line, entering into a licensing agreement with Marcolin for optical frames and sunglasses.[29] In 2012 and 2013, Tod’s and Jefferson Hack collaborated on Tod’s No_Code collection of both men’s and women’s leather shows with slim white soles.[30] In 2014, Tod’s teamed up with Japanese design studio Nendo to create the “Envelope Boat Shoe”, a rubber-soled slip-on.[31] In late 2017, the group launched a new business model dubbed Tod’s Factory to refresh its namesake brand, offering new products and more frequent collections, backed by significant marketing investment.[32][33] In January 2017, Italian businessman Andrea Bonomi – through his Strategic Capital fund – took a 3% stake in Tod’s to support its long-term growth.[34] As part of Tod’s Factory, it launched the “Tod’s X Mr Porter” menswear capsule collection for Yoox Net-a-Porter in a bid to increase its reach to online customers.[35][36] The New York Times reported in 2018 that the Tod's design team would curate "one-off capsule collections by guests" as part of their go-to-market strategy.[37] In 2023, Tod's collaborated with Lamborghini on a line of driving shoes[38] and re-engaged Palm Angles on a second line of custom sneakers.[39] In 2023, the group announced it had crossed €1 billion in revenue.[40]

In 2024, the Della Valles and Tod's lost a long-running battle with French tax authorities who had investigated the company's odd accounting practices while it was privately held by the Della Valle brothers resulting in "ambiguous dealing with shareholders".[27] Between 2003 and 2015, Roger Vivier was owned by the Della Valle family via holding companies in Portugal and then Luxembourg, but that the licence was held by Tod's, which was controlled by the same family (with a stake of more than 50%). To the dismay of Tod's minority shareholders, the company paid royalties to the Della Valles amounting to €52m from 2004 to 2015, personally enriching the executives.[27]

Attempted privatizations

From 2019 onward, Diego Della Valle started purchasing Tod’s shares as they came under pressure due to sliding sales, increasing his ownership to 81.2%.[41] In early 2021, LVMH raised its investment in the group from 3.2% to 10%.[42] In May 2021, the market value of Tod's was €1.6 billion.[21][43] In 2022, Della Valle and his brother Andrea offered to buy out other investors at €40 a share for up to €338 million ($344 million) – valuing the company at €1.32 billion ($1.3 billion) – and to de-list the company via a merger with their holding company DeVa Finance.[44] In September 2022, the Italian Companies and Exchange Commission (CONSOB) approved the proposed buyout.[45]

Tabor Asset Management published a pair of public open letters questioning the fairness of the terms of the voluntary tender offer asking each interested party to decide for itself whether the Board has done enough to protect the interests of the average shareholder given the outsized influence that Della Valle has through his insider roles and his massive indirect ownership noting the discrepancy in multiples identified by Tod's board when providing its fairness opinions and those used by banks.[46][47] The privitization attempt was unsuccessful.[48]

In 2024, the Della Valle family entered a deal with private equity firm L Catterton, backed by LVMH's Bernard Arnault, to take Tod's private.[49] L Catterton are to purchase 36% of shares at 17% premium of market value, and the Della Valle family will retain control with 54% of the company. 10% of the company will remain owned by an investment arm of LVMH. If the delisting bid fails, the entities have announced intentions to merge.[50][51]

Creative directors

Sponsorship

In September 2010 Tod’s bestowed $350,000 on Milan’s La Scala theater; a $7.4 million gift followed in June 2011.[57]

A Tod's store front in Hong Kong, 2020

In 2011, Tod’s emerged as the only private sponsor willing to fund the restoration of Rome’s Colosseum, after a tender fell through; the agreement granted the company exclusive rights to the Colosseum’s logo and images for 15 years in exchange for €25 million ($31.99 million).[58] Tod’s suspended the agreement pending the outcome of two judicial inquiries and a probe by Italy’s antitrust competition authority into the deal, triggered by complaints by the Italian Labour Union (UIL) and Codacons, a consumer organization.[59][60]

In 2023, Tod’s pledged €2.5 million to the restoration of Palazzo Marino, the 16th-century building in Milan that has housed city hall since 1861.[61]

Imitation accusations

In 2014, Ferrari director Lapo Elkann attacked Tod's CEO Diego Della Valle in a series of posts including the common accusation that Tod's flagship gommino shoe (launched in 1979) was an imitation of The Original Car Shoe (founded in 1963, now owned by Prada), declaring “Car Shoe founded in 1963…The original!"[62][63]

In 2023, luxury handbag brand Tribe of Two sued Tod's for trademark infringement after it introduced a "double-T" logo that was confusingly similar to Tribe of Two's logo. Tribe of Two's original logo was designed by its cofounder Brenda Schad and had been registered with the United States Patent and Trademark Office since 2013.[64][65]

See also

References

  1. ^ a b c d e f "press release 2024 03 12" (PDF). todsgroup.com. Retrieved 4 October 2024.
  2. ^ "Investor Relations - Shareholders". todsgroup.com. Retrieved 10 March 2022.
  3. ^ "Tod's moves on from cozy loafers in bid to recover sales". Reuters. 2014-08-06. Retrieved 2023-10-28.
  4. ^ a b Ball, Deborah Ball (2000-11-01). "Tod's Hopes to Grow Brand With Initial Public Offering". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-10-28.
  5. ^ Alderman, Liz (2010-10-08). "A Shoemaker That Walks but Never Runs". The New York Times. ISSN 0362-4331. Retrieved 2020-03-31.
  6. ^ Anne-Marie Schiro (25 August 1998), Expansion at J. P. Tod's New York Times.
  7. ^ Marcy Medina (1 August 2008), Tod’s in Tinseltown W.
  8. ^ Constance C. R. White (1 October 1996), J. P. Tod's Conversions New York Times.
  9. ^ a b Yorker, The New (2004-05-02). "Shoe Dreams". The New Yorker. ISSN 0028-792X. Retrieved 2023-10-28.
  10. ^ Sheryl Garratt (16 October 2011), Diego Della Valle of Tod's: king of loafers The Daily Telegraph.
  11. ^ Alderman, Liz (October 8, 2010). "A Shoemaker That Walks but Never Runs". The New York Times. Retrieved October 28, 2023.
  12. ^ Lapo Elkann Confronts Diego Della Valle on Facebook
  13. ^ Lapo prende a scarpate Diego Della Valle
  14. ^ Sylvers, Eric (2019-02-16). "Tod's Loafers Have Won Over Royals and Hollywood—But Not Many Millennials". Wall Street Journal. ISSN 0099-9660. Retrieved 2023-10-28.
  15. ^ a b Newbold, Alice (2021-06-04). "Princess Diana Found The Perfect Summer Loafer Long Ago". British Vogue. Retrieved 2023-10-28.
  16. ^ Twersky, Carolyn (2021-09-28). "A History of Princess Diana's Favorite Handbags From Gucci to Dior". W Magazine. Retrieved 2023-10-28.
  17. ^ a b Reginato, James (2018-03-09). "How Diego Della Valle Took Tod's from Small-Town Cobbler to Global Success". Vanity Fair. Retrieved 2023-10-28.
  18. ^ Giulia Segreti (14 July 2017), Designers for Fay label leave Tod's luxury group Reuters.
  19. ^ Giulia Segreti (24 February 2018), Italy's Fay marks new departure with designer Arthur Arbesser Reuters.
  20. ^ Suzy Menkes (17 March 2010), Lagerfeld to Help Tod’s With Its Hogan Brand New York Times.
  21. ^ a b "The future of Tod's". Vogue Business. 21 May 2021. Retrieved 2021-06-27.
  22. ^ "Tod's splashes out $440 million on Roger Vivier shoes". Reuters. 23 November 2015.
  23. ^ Anne-Marie Schiro (27 April 1999), An Empire of Leather Goods Still Driven by a Driving Shoe New York Times.
  24. ^ Betts, Kate (2006-03-08). "Driving Force: Diego Della Valle". Time. ISSN 0040-781X. Retrieved 2023-10-28.
  25. ^ Yorker, The New (2004-05-02). "Shoe Dreams". The New Yorker. ISSN 0028-792X. Retrieved 2023-10-28.
  26. ^ a b Tod’s Acquires Roger Vivier Trademark
  27. ^ a b c French taxman brings Roger Vivier to heel over Tod's odd accounting
  28. ^ Liz Alderman (8 October 2010), A Shoemaker That Walks but Never Runs New York Times.
  29. ^ Meliado, Edorado (2018-07-05). "Tod's renews eyewear licence with Marcolin until 2023". Fashion Network. Retrieved 2022-09-03.
  30. ^ Eugénie Trochu (27 February 2013), Jefferson Hack for Tod's New York Times.
  31. ^ Isla Binnie (6 August 2014), Tod's moves on from cozy loafers in bid to recover sales Reuters.
  32. ^ Vanessa Friedman (9 July 2019), Alber Elbaz Makes a Happy Return New York Times.
  33. ^ Claudia Cristoferi (20 September 2019), Tod's chief says Hong Kong unrest factored in, turnaround taking effect Reuters.
  34. ^ Valentina Za and Massimo Gaia (11 January 2017), Italy's Bonomi takes 3 pct stake in Tod's, shares soar Reuters.
  35. ^ Nicole Phelps (25 September 2018), Tod’s Makes Alessandro Dell’Acqua Its First Tod’s Factory Collaborator Vogue.
  36. ^ Giulia Segreti (17 June 2017), Tod's launches men's capsule collection for YNAP's Mr Porter Reuters.
  37. ^ Ahmed, Osman (November 19, 2018). "Collaborations Make Inroads in the Luxury Market". The New York Times. Retrieved November 12, 2023.
  38. ^ "Italian brands Lamborghini and Tod's team up for fashion". Reuters. 2023-02-16. Retrieved 2023-11-04.
  39. ^ Luke, Leitch (2022-11-30). "Palm Angels Recruits Naomi Campbell—and Remixes Tod's—for Its Latest Moncler Genius Collection". Vogue. Retrieved 2023-11-12.
  40. ^ a b Shoaib, Maliha (2023-12-01). "Tod's Appoints Matteo Tamburini as Creative Director". Vogue. Retrieved 2023-12-01.
  41. ^ Valentina Za (20 August 2019), Tod's founder Della Valle further raises voting stake to 81.2% Reuters.
  42. ^ "LVMH ups Tod's stake as footwear brands surge back into fashion". Fortune. Retrieved 2021-06-27.
  43. ^ Zargani, Luisa (2021-05-12). "China, Roger Vivier and E-commerce Boost Tod's Group in Q1". WWD. Retrieved 2021-06-27.
  44. ^ Agnieszka Flak and Valentina Za (26 October 2022), Tod's founders scrap buyout, mull next step as shares fall Reuters.
  45. ^ Francesca Landini (21 September 2022), Italy's market watchdog approves bid to take Tod's private Reuters.
  46. ^ Tod's investor repeats criticism of Della Valles' bid as offer nears end
  47. ^ Tabor Asset Management Releases Letter Questioning Tender Offer for Tod's S.p.A.
  48. ^ Agnieszka Flak and Valentina Za (26 October 2022), Tod's founders scrap buyout, mull next step as shares fall Reuters.
  49. ^ Amed, Imran; Williams, Robert (2024-02-11). "Tod's Group to Go Private in Deal with L Catterton". The Business of Fashion. Retrieved 2024-02-13.
  50. ^ Zargani, Luisa (2024-02-11). "L Catterton, Tod's Ink Deal to Delist Italian Group, Potentially Merge". WWD. Retrieved 2024-02-13.
  51. ^ Della Valle, Tod's compra le scarpe Roger Vivier
  52. ^ Eric Wilson (9 June 2005), Picking Up the Pace New York Times.
  53. ^ Merle Ginsberg (12 March 2012), More Designer Musical Chairs: Derek Lam is Leaving Tod’s Hollywood Reporter.
  54. ^ Italy's Tod's hires former Gucci designer Facchinetti Reuters, 20 February 2013.
  55. ^ Isla Binnie (20 June 2014), Tod's hires designer Incontri to make strides beyond footwear Reuters.
  56. ^ Elisa Anzolin (12 July 2023), Tod's creative director Walter Chiapponi to step down Reuters.
  57. ^ Andrea Lee (1 September 2011), The Tycoon Next Door W.
  58. ^ Catherine Hornby and Andrew Roche (2 December 2010), Tod's CEO offers to fund Colosseum repair work Reuters.
  59. ^ Guy Dinmore (12 January 2012), Tod’s puts Colosseum agreement on hold Financial Times.
  60. ^ Antonella Ciancio (12 January 2012), Luxury shoemaker threatens to quit Colosseum repair Reuters.
  61. ^ Sandra Salibian (26 November 2023), Tod’s Group Funds Restoration of Palazzo Marino in Milan Women's Wear Daily.
  62. ^ Lapo Elkann Confronts Diego Della Valle on Facebook
  63. ^ Lapo prende a scarpate Diego Della Valle
  64. ^ TOD’S Hit With Trademark Infringement Lawsuit Over “Knock-Off” Logo
  65. ^ Brand Popularized on ‘Scandal’ Sues Tod’s Over ‘Confusingly Similar’ Logo
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