Italian luxury brand Moncler is rumored to be looking to take over the prestigious British brand Burberry. According to the website Miss Tweed, which refers to industry gossip that Moncler may be considering a potential acquisition of Burberry, which has struggled as demand for luxury goods has fallen.
The Moncler Group, which, besides Moncler, includes Stone Island, has money to spend. The group recently reported that its consolidated revenues for Moncler rose 6 percent on a constant currency basis to €1,865.7 million. The gain was lower than the 11 percent increase reported for the six months ended June 30. Once again, the DTC channel drove growth in the period, rising by 13 percent to €1.26b within the Moncler segment and 29 percent at Stone Island to €313.2 million.
Miss Tweed quoted several industry sources, saying: “The head of luxury goods conglomerate LVMH, an investor in Moncler, is keen to do a deal with the British retailer. LVMH, whose portfolio of high-end brands includes Louis Vuitton, Dior, Fendi and Celine, has a 10 percent stake in Double R, the investment vehicle that owns Moncler. This gives LVMH a seat on the board of directors of the Italian fashion brand.”
Moncler later told The Guardian that it does not comment on “unfounded rumors.”
Shares in Burberry rose as high as 872 pence in early trading on Monday, up more than 7 percent from Friday’s close of 812p. The stock closed up 6 percent at 861p, valuing it at £3.1 billion (€3.7bn).
Burberry was founded by Thomas Burberry 165 years ago when he wanted to make clothing that could withstand the harsh British weather. Burberry has since created many iconic garments, such as the scarf and the quilted jacket.
