MILAN — Tod’s shares spiked on the Italian Bourse Wednesday morning following speculation that Italian financier Andrea C. Bonomi has purchased a 3 percent stake in the Italian luxury group, equivalent to one million shares. By 12.30 p.m., Tod’s shares were up 10.94 percent to 67.45 euros, or $71.39, at current exchange.
While no official comment was made, industry sources confirmed the transaction.
Bonomi heads BI-Invest, which in turn controls Investindustrial and Strategic Capital. It is understood that the latter has bought the Tod’s shares.
With capital of 56 billion euros, or $59.27 billion, Investindustrial, founded in 1990 in London, invests in companies that are not publicly listed, seeking long-term control. In December 2015, Investindustrial took control of Sergio Rossi from Kering, and tapped former Pomellato ceo Andrea Morante as president of the firm. Riccardo Sciutto, former general manager of Hogan, joined Sergio Rossi as its new ceo in March.
Investindustrial was founded by Bonomi and also has stakes in Perfume Holding, Aston Martin, B&B Italia and luxury lighting firm Flos, among others.
With a program of investments of 1 billion euros, or $1.05 billion, Strategic Capital buys minority stakes in public companies with a long-term vision. It eyes companies that have high growth potential and that may be underperforming on the market for a number of reasons.
Tod’s has been feeling the pinch of a slowdown in tourism and weak consumer spending in the luxury market, as well as a lackluster performance in its leather goods category. The company has also been streamlining its wholesale distribution.
As reported in October, Tod’s SpA revenues in the first nine months of the year were down 3.7 percent to 757.7 million euros, or $841 million, compared with 786.9 million euros, or $873.4 million, in first nine months of 2015. Tod’s controls the Tod’s, Hogan, Fay and Roger Vivier brands.
“As expected, the sales figures for the nine months reflect a volatile and uncertain economic and financial environment, characterized by the persistent weakness of consumption in many important markets for luxury goods,” said Tod’s chairman and chief executive officer, Diego Della Valle at the time.
“The fall season started only in the second half of September; the collections now in stores are registering positive feedback. Customers appreciate the focus on high-quality products, shoes, handbags and small leather goods in the first place, all of them well reflecting the craftsmanship, the Italian way of life, and the strong innovation that characterize our brands. We think we’re going in the right direction in our strategic growth plan for the coming years and we are continuing with determination on this road.”
Tod’s share price has fallen 2.32 percent over the past year.
Bonomi’s stake is slightly below that of LVMH Moët Hennessy Louis Vuitton chief Bernard Arnault, who owns 3.46 percent of Tod’s.
Last year, Bonomi joined forces with Tod’s chairman and chief executive officer Diego Della Valle forming International Media Holding, a group of shareholders that included Mediobanca, among others, in a takeover bid to secure RCS MediaGroup. Cairo Communication eventually took control of RCS, whose jewel in the crown is Italy’s daily newspaper Corriere della Sera.