MILAN — Diego and Andrea Della Valle, chairman and vice chairman, respectively, of Tod’s SpA revealed on Monday that they are waiving their remunerations for the year 2020 and that the company will not distribute any dividends in light of the progressive worsening globally of the coronavirus outbreak.
The decision was taken during an extraordinary shareholders’ meeting that day and the news was released at the end of trading in Milan, where the Tod’s group is publicly listed.
According to an online document on the Tod’s site, in 2019 Diego Della Valle’s salary amounted to around 1.8 million euros, while that of his brother totaled around 1.3 million euros. The Della Valle family is the main shareholder in the group, controlling a 71 percent stake.
A dividend of 60 euro cents, corresponding to a pay-out of approximately 43 percent on the group’s net income per share, had been approved on March 12, when the company, which controls the Tod’s, Hogan, Fay and Roger Vivier brands, reported its 2019 sales and profits. “Given the extraordinary nature of the current situation” impacted by the COVID-19 crisis, the board of directors nixed the distribution.
The annual general shareholders’ meeting was slated to be held on April 22 on first call and on May 29 on second call, but it has been postponed to June 3 on first call, and if necessary on June 26 on second call, in the hope of a physical attendance of shareholders. As reported, Italy has been in lockdown since March 9 and has been battling a severe health emergency, with nonessential activities shut down until April 3, although the closure could be extended to at least April 18.
The destination of 1 percent of consolidated net income, which corresponds to 456,588 euros, to pursue solidarity projects was confirmed.
As reported, in the 12 months ended Dec. 31 Tod’s SpA reported a 1.7 percent decrease in net profits to 46.3 million euros last year, compared with earnings, net of minority interests, of 47.1 million euros in 2018.
Last year, revenues totaled 916 million euros, down 2.6 percent compared with 940.5 million euros in the previous year.
In the fourth quarter, sales were up 1.7 percent to 238.3 million euros, compared with the same period in 2018.
Commenting the 2019 figures earlier this month, chief financial officer Emilio Macellari said it was “more difficult to predict how the first half of the year will look, and in particular the second quarter. I have more confidence in the second half given the high level of uncertainty in the second quarter. It’s too early for any reliable indication.” He added that one-third of sales in Italy are made to tourists. He added that it was “particularly disappointing because the year was starting in the best possible way, with very good results in the first three weeks” of 2020.