×
747
Fashion Jobs
CLINIQUE
Clinique - Consultant - Melbourne International Airport- Part Time
Permanent · Melbourne
TIFFANY & CO
Sales Manager - Pitt Street
Permanent · Sydney
LOVISA
Expression of Interest - Regional & State Managers
Permanent · Miranda
MUNRO
Assistant Payroll Manager
Permanent · MELBOURNE
DAVID JONES
Production Manager - Womenswear - Country Road
Permanent · MELBOURNE
DAVID JONES
Paid Social Analyst
Permanent · MELBOURNE
DAVID JONES
Merchandise Planner - Womenswear
Permanent · Melbourne
DAVID JONES
Sales Expert - Designer Womenswear - David Jones Elizabeth Street
Permanent · SYDNEY
L'OREAL GROUP
National Sales Director - Redken & Pureology
Permanent · Melbourne
SMIGGLE
Supply Coordinator - Smiggle
Permanent · Melbourne
DAVID JONES
Sales Manager - Bourke Street Mall - David Jones
Permanent · Melbourne
DAVID JONES
Product Safety & Traceability Manager
Permanent · Melbourne
DAVID JONES
David Jones | Assistant Support Manager Loss Prevention | Hay st
Permanent · Perth
L'OREAL GROUP
Brand Manager- l'Oreal Professionnel
Permanent · Melbourne
L'OREAL GROUP
Assistnnt Product Manager- Kerastase & Shu Eumura Art of Hair
Permanent · Melbourne
L'OREAL GROUP
Brand Manager - Garnier
Permanent · Melbourne
L'OREAL GROUP
l'Oreal Precision Advertising Manager
Permanent · Melbourne
L'OREAL GROUP
Commercial Finance Business Partner
Permanent · Melbourne
L'OREAL GROUP
Business Consultant - Kerastase
Permanent · Adelaide
L'OREAL GROUP
Business Consultant - Loreal Professionnel
Permanent · Sydney
PETER ALEXANDER
Supply Coordinator - Peter Alexander
Permanent · Melbourne
DAVID JONES
David Jones | Sales Manager | Menswear | Market Street Store
Permanent · Sydney

Moncler plays down possible Kering tie-up amid luxury merger wave

By
Reuters
Published
today Dec 5, 2019
Reading time
access_time 3 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

The chief executive and top shareholder of Moncler played down speculation around a takeover by Gucci-owner Kering on Thursday, saying the two firms sometimes talked but that there was no deal in the works.


© PixelFormula



Shares in the Italian label, which has become a luxury industry favourite in recent years after a makeover under CEO Remo Ruffini, surged earlier after Bloomberg reported that it had held exploratory discussions with Kering.

That heightened expectations of more dealmaking in a luxury industry dominated by vast conglomerates, although some banking and sector sources said they were sceptical about the merits of a combination for both sides.

Ruffini, who bought Moncler in 2003, said in a statement that from time to time “he maintains contacts and interacts with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler.”

“At the moment, however, there is not any concrete hypothesis under consideration,” he added.

Moncler’s shares hit record highs in Milan earlier and were up 8.5% after Ruffini’s comments, while Kering shares were up 1.2% in Paris. The company declined to comment.

Now worth over €10 billion on the stock market, Moncler would likely command a hefty premium, several banking sources said, and would not drastically rebalance Kering’s portfolio, which is heavily reliant on clothing labels.

Its larger Paris-based rival LVMH, owner of Louis Vuitton, recently raised the stakes by snapping up US jeweller Tiffany, increasing its presence in one of the fastest-growing pockets of the luxury industry.

Still, the speculation around Moncler comes as the outlook for standalone brands becomes trickier, with cash-rich groups like LVMH and Kering drowning out competitors with more spending on social media marketing and the hire of star designers.

The conglomerates are also better equipped to absorb the hit from protests in Hong Kong and invest in markets like mainland China, which could motivate some labels to seek buyers.

FASHION MOMENT

Under Ruffini, Moncler - which derives its name from Monestier-de-Clermont, a mountain village near Grenoble in France, and which originally made sleeping bags - has developed a more fashionable edge.

It listed on Milan’s bourse six years ago and has thrived by expanding in markets like Asia, while rejigging its strategy with its Genius concept.

Like its rival Canada Goose, which makes more functional winter jackets, Moncler has also benefited from growing consumer demand for high-end streetwear.

“This trend is not a fashion moment, people change the way they dress, they want to be more free, more casual,” Ruffini told Reuters in a 2018 interview.

But analysts and industry insiders have sometimes questioned whether its model, which is heavily reliant on a single product, is sustainable.

Ruffini, who owns more than 22% of the group, had talked to Kering about a potential deal around the time of its flotation, two sources familiar with the matter said.

He has given few indications since that he would be willing to sell, however.

Kering is meanwhile widely expected to seek out an acquisition to offset its reliance on Italian fashion label Gucci for profits.

But Moncler may not be the perfect fit. “Remo Ruffini and his senior management team have driven the brand in near perfect manner – taking it to unprecedented heights. Adding value by acquiring Moncler is therefore not easy,” Bernstein analyst Luca Solca said in a note.

Another banking source said Kering might think twice about buying a lifestyle label again after needing years to turnaround sports brand Puma, which it purchased in 2007 and spun off to its shareholders in 2018.

© Thomson Reuters 2020 All rights reserved.