The encyclopedia · Strategy & Leadership · Strategic decision · 2022–2024
Tod's chased ultra-luxury status and lost the accessible identity its customers loved
The Gommino loafer brand tried to price itself toward Hermès — sales stalled, a 2022 delisting failed, and in 2024 LVMH-backed L Catterton took it private
Tod's · 2024-05-06
What happened
Tod's was founded by the Della Valle family in the 1920s as a shoemaking workshop. Its Gommino driving loafer, launched in 1979, became a global symbol of understated Italian luxury. By 2000, when the company listed on the Milan Stock Exchange, it was valued at €1.2B. The group expanded with Hogan, Fay, and Roger Vivier.
In the 2010s, the Della Valle family pushed the brand upmarket — raising prices and targeting an ultra-luxury clientele. But the higher pricing alienated the customers who had made the Gommino a wardrobe staple. Revenue growth stalled. A 2021 LVMH stake increase to 10% signalled external interest, but a 2022 delisting attempt at €40 per share failed when activist investors rejected the valuation.
In May 2024, Tod's was successfully delisted after L Catterton — the LVMH-backed private equity firm — acquired 36% of shares at €43 each, a total bid of €512M. The Della Valle family retained 54% control, and LVMH kept its 10% stake. The company exited the stock exchange after 24 years. The delisting gave the family freedom from quarterly scrutiny, but it also confirmed that an iconic independent luxury brand could no longer thrive alone.
Why it happened
- The upmarket pricing push alienated the core Gommino customer who valued Tod's for accessible Italian luxury, not exclusivity
- The brand lacked the heritage and storytelling of true ultra-luxury houses, so higher prices attracted no new clientele at the top
- Activist investors blocked the 2022 delisting at €40/share, revealing the market's lack of confidence in the brand's strategic direction
- As an independent brand without conglomerate scale, Tod's could not invest enough to compete with LVMH or Kering on marketing or store experience
The lesson
When a brand chases a customer it has not earned while losing the customer it has, it ends up serving nobody — price positioning must match the brand equity, not the ambition
Aftermath
Tod's was delisted from Euronext Milan in May 2024. L Catterton holds 36%, the Della Valle family 54%, LVMH 10%. Founder Diego Della Valle remains CEO. The group reported €1.12B revenue in 2023, a 12% increase, but the underlying challenge of competing in the luxury conglomerate era remains unresolved.
Sources
- FashionUnited — Tod's delisted after successful L Catterton bid (May 2024)
- Wikipedia — Tod's
- Vogue — Tod's potential delisting deal (Feb 2024)
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