Italian shoemaker Tod's is setting its sights on the US market, with a private equity firm backed by LVMH betting big on American demand for its understated luxury aesthetic.
L Catterton, a joint venture between LVMH and Catterton, recently acquired a majority stake in Tod's, valuing the company at over $1.5 billion. The move aims to take Tod's private and focus on boosting its profitability, which has fallen behind competitors like Prada and Brunello Cucinelli.
While Tod's prioritizes in-house production for quality control, this approach can be more expensive than outsourcing. L Catterton sees potential in Tod's brand heritage, particularly its "sober elegance" reputation, and plans to invest heavily in marketing to capture the hearts (and wallets) of American luxury consumers.
Tod's classic offerings, including the iconic $695 Gommino loafers with their signature rubber pebble soles, already resonate with affluent consumers over 40. By leveraging L Catterton's expertise and focusing on the US market, Tod's aims to solidify its position as a leader in quiet luxury.
This acquisition marks a shift for Tod's, and only time will tell if their strategy to win over American luxury shoppers proves successful.
Source: Reuters