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BUZZ-Tod's: out of fashion
October 11, 2016 / 1:36 PM / a year ago

BUZZ-Tod's: out of fashion

** As Gucci owner Kering goes from strength to strength, tackling the low-growth luxury market by undertaking a dramatic refresh of its range, peer Tod’s appears to be falling behind -- and its shares are getting hammered

** Some of the vibrant designs on Gucci’s top selling Dionysus bags are a far cry from understated approach of 2012/13; stock +25% in last 6 mths; Gucci repositioning spurred Goldman upgrade end-Sept

Dionysus bag Link:

** Tod‘s, whose creative director Alessandra Facchinetti departed in May (not replaced yet), has seen its shares fall 18% in last 6 mths, worst Luxury performer; co to focus on its range of core, well-known products

** “Everybody else is getting more fashion orientated and ‘newness’ is the key thing and (Tod‘s) just decided to go back to oldness,” Barclays luxury goods analyst Julian Easthope, says (Underweight)

Performance chart:

** Tod’s heavily borrowed, with ~10% of shares outstanding on loan, per Markit

** But some view its focus back onto traditional biz (e.g. loafers for which it is renowned) as a plus e.g. Citi (Buy) and Intesa SanPaolo (RM:

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