LVMH secures a stake in Moncler

French conglomerate LVMH has finalised an agreement with the chief executive of Italian luxury group Moncler, a prominent player in the realm of Italian luxury outerwear which also owns Stone Island.

The deal, which entails LVMH securing an initial 10 percent stake in Double R, the investment vehicle overseeing Moncler’s operations, with an option to increase its stake up to 22 percent.

This transaction not only solidifies LVMH’s diverse portfolio, which boasts over 75 brands including Louis Vuitton, Dior, Loro Piana and Celine, but also positions the conglomerate to wield some influence within Moncler’s strategic direction.

LVMH, leveraging its considerable financial resources, will facilitate Double R’s augmentation of its Moncler stake to a formidable 18.5 percent within the next 18 months.

Moncler has emerged as a standout performer amid the recent fluctuations in the luxury sector.

As the world navigates the transition from a pandemic-induced surge in luxury spending, Moncler has continued to demonstrate resilience, reporting an 11 percent increase in like-for-like sales amounting to EUR1.23 billion in the first half of the fiscal year.

In the first quarter of the year, Moncler revenues in Asia (which includes Asia-Pacific Japan and Korea) grew by 26 percent, driven by very solid growth in the Chinese mainland, despite a very tough comparable base and the increase in Chinese consumption abroad. Japan and Korea also continued to deliver strong performance, due to positive contribution from both tourists and locals.

Such a move stands as a testament to LVMH’s commitment to fortifying its foothold in the luxury market and further consolidating its position as a key player in the industry.

While Moncler’s chair and chief executive, Remo Ruffini, will retain control of Double R, LVMH will exercise its newfound influence by nominating two board members within Double R and an additional member within Moncler.