Italian fashion brand Tod’s saw its sales rise by 16.4% in the first nine months of the year as its owners continue to contemplate whether they should de-list the company to revitalize the brand as they had initially intended.
The brand’s revenue reached €724.9 million during the first three quarters, exceeding the €716 million analysts had predicted. The growth was driven by an inflow of tourists in Europe and Italy and demand for local customers.
Last month, the Della Valle family, which owns slightly more than two-thirds of the company’s stock, failed to take the company private as they could not buy out other shareholders and reach the 90% ownership threshold.
Chief Financial Officer Emilio Macellari, the Della Valle family, is now assessing whether it should take the business private by merging Tod’s into the family’s holding company — an option it had previously highlighted in its offer to its shareholders.
If the family were to exercise this option, it would likely leave the brand’s minority shareholders with illiquid equity in an unlisted company, Reuters reported.
Macellari told analysts that the family expects to reach a decision before the end of the year.
“We are confident that we will be able to achieve good results also for the future,” Chairman and CEO Diego Della Valle said in a statement citing orders coming in for the spring/summer collection.
Photo credit: Tod’s