Capital Calls: Tod’s up, Moncler down



(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

ZURICH (Reuters Breakingviews) - Concise insights on global finance.


SHOE FITS. When it comes to stock-market fashion, Diego Della Valle’s loafer-maker Tod’s has been downright dowdy, declining a third over the past five years compared to puffy-jacket manufacturer Moncler’s 250% surge. But the shoe is on the other foot of late: Tod’s turnaround hopes have propelled the shares nearly 40% higher this year while Moncler has languished.

LVMH’s purchase on Thursday of 6.8% of Tod’s from Della Valle, building Bernard Arnault’s conglomerate’s stake to 10%, follows the investor-titillating appointment of Instagram celeb Chiara Ferragni to its board two weeks ago. Moncler meantime reported first-quarter results which emphasised its dependency on the lockdown-stricken European market.

It’s understandable that Tod’s long-suffering shareholders would find succour in LVMH’s interest. But given Arnault’s penchant for creeping control, nickel-and-diming and browbeating his targets into submission – on full display in last year’s Tiffany deal – investors should be wary. To wit: LVMH snagged its latest Tod’s stake at a 10% discount. Caveat emptor lux. (By Rob Cox)

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Earlier in Capital Calls:

Top Glove reduces listing stretch

Chubb and Hartford

Private pools boom

The less flashy end of green investing

American Airlines lightens the losses

(SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS:; | Editing by Liam Proud and Oliver Taslic. Graphic by Vincent Flasseur.)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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