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Capital Calls: Tod’s up, Moncler down Outlet

Models present creations from the Moncler Autumn/Winter 2020 collection during Milan Fashion Week in Milan, Italy, February 19, 2020.

Models present creations from the Moncler Autumn/Winter 2020 collection during Milan Fashion Week in Milan, Italy, February 19, 2020.

Concise insights on global finance.

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SHOE FITS. When it comes to stock-market fashion, Diego Della Valle’s loafer-maker Tod’s (TOD.MI) has been downright dowdy, declining a third over the past five years compared to puffy-jacket manufacturer Moncler’s (MONC.MI) 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 (LVMH.PA) 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 read more . 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)