LVMH Purchases 10% Stake in Moncler

Shares in Milan listed Moncler (MONC.MI) were up 15% in early morning trading yesterday on the news that the Paris based holding company, LVMH, had purchased a 10% stake in the Italian luxury brand.

If there’s one outerwear brand that is still one of the most sought after on the streets it’s got to be Moncler. It’s luxury appeal and classic “down” style remains one of the most in demand brands across the streets of the UK & Europe whether you’re on the roads, the terraces or a members only country club. A subcultural appreciation which spans all the way back to the original Paninaro of Milan who had a penchant for motorbikes & Moncler jackets to more recent collaborations with adidas, Craig Green & OG Grime artists like Skepta, has secured an outerwear dominance of all things “down” for the Italian luxury brand. Following the acquisition of Stone Island back in 2020, Moncler now enters a new LVMH era. Shares in Moncler were up 15% in early morning trading yesterday following the news that LVMH had purchased a 10% stake in Moncler, also securing a seat on the board of the luxury Italian based outerwear brand.

Analysts said the news could signal a potential takeover of Moncler by the Paris based holding company, LVMH, who also owns Louis Vuitton, Moet & Chandon, Dior, Kenzo, Tag Heur, Givenchy as well as a minority stake in the New York streetwear brand Aimé Leon Dore. The news also reinforced the dominance of LVMH in a troubled luxury market following the recent news Burberry had been booted off the FTSE 1oo. Shares in Moncler, which had fallen 6.5% earlier in the year were up 15% on Friday on the news LVMH had purchased a 10% stake in Double R which is Moncler CEO’s Remo Ruffini’s investment company. Double R currently owns a 15.8% stake in the Milan listed luxury brand. Ruffini purchased Moncler back in 2003 and took it public on the Milan stock exchange ten years later in 2013. Following a surge in popularity over the last 10 years as well as a strict wholesale policy, Moncler’s sales were up by 11% in the first half of 2024 to €1.2 billion.

This partnership reinforces Double R’s position in Moncler and provides the stability needed to execute my vision for the future.

Remo Ruffini, CEO Moncler

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