|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||536.20 - 549.00|
|52-week range||377.60 - 553.40|
|Beta (3Y monthly)||1.12|
|PE ratio (TTM)||35.15|
|Earnings date||10 Feb 2020 - 14 Feb 2020|
|Forward dividend & yield||10.50 (1.98%)|
|1y target est||524.67|
PARIS/MILAN (Reuters) - The chief executive and top shareholder of puffer jacket maker 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. Shares in the Italian label, which has become a luxury industry darling in recent years after a makeover under CEO Remo Ruffini, surged earlier after Bloomberg reported that it had held exploratory discussions with Kering.
(Bloomberg) -- Kering SA has held exploratory talks with Moncler SpA about a potential deal for the Italian skiwear maker, people with knowledge of the matter said.Senior executives at Kering, the owner of Gucci and Saint Laurent, and Moncler have held preliminary discussions about a combination, according to the people, who asked not to be identified because the information is private. There’s no certainty the talks will lead to a transaction.Any takeover would require Kering Chief Executive Officer Francois-Henri Pinault to win over Moncler’s Remo Ruffini, whose investment vehicle owns 22.5% of the company, which has a market value of about 11 billion euros ($12 billion).Ruffini “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,” the Italian company said in a statement Thursday. “At the moment, however, there is not any concrete hypothesis under consideration.”A representative for Kering declined to comment.Moncler surged as much as 12%, the biggest gain since the shares began trading about six years ago in Milan. Kering rose 1% in Paris, and other European luxury stocks gained.Adding Moncler would help Kering keep pace with larger rival LVMH, which recently agreed to buy jeweler Tiffany & Co. for $16.2 billion in the biggest-ever luxury deal. The rivalry between LVMH Chairman Bernard Arnault and Kering’s controlling shareholder Francois Pinault -- Francois-Henri’s father -- has fueled the transformation of the industry over the past few decades, as the French companies raced to assemble vast portfolios of labels.“LVMH’s Tiffany takeover is putting pressure on everyone,” Bernstein analyst Luca Solca said.Gucci’s ProfitKering’s offerings include Ulysse Nardin watches and Boucheron jewelry, as well as fashion labels such as Alexander McQueen and Bottega Veneta. The company has become increasingly dependent on Gucci, which provided more than three-quarters of its operating profit in the first half of the year. That’s putting pressure on Kering to diversify in order to hedge against the risk that demand for the Italian brand’s new looks could fade.A deal for Moncler would give Kering a label whose growth has stood out over the past decade, even in a booming luxury sector. As bankers shuck suits, ties and overcoats in favor of more casual attire, its $2,000 puffy down jackets have moved beyond the ski slopes of St. Moritz to the conference rooms of the World Economic Forum in Davos. Moncler’s profit margins rival those of Hermes International.The driving force behind Moncler is Ruffini, who bought the company in 2003 and transformed it from a failing French maker of functional but no-frills outdoor gear into one of the world’s hottest luxury brands. The CEO took the brand upmarket, opening boutiques in places ranging from Rodeo Drive in Beverly Hills to the Alpine hub of Chamonix. It has 49 stores in greater China, where consumers are driving the industry’s growth.Shares of Moncler have roughly quadrupled since the company completed its initial public offering in late 2013. The stock has climbed about 48% this year.The company said in October that sales for the first nine months of the year rose 12% at constant exchange rates, reassuring investors that Chinese consumers are still spending on fancy ski jackets despite the effects of anti-Beijing protests in Hong Kong that have hit sales in the key luxury hub.Swimsuits, SneakersLonger term, Moncler has faced questions about where growth will come from if its fans tire of buying expensive coats. The company has added everything from swimsuits to sneakers, and Ruffini has launched collaborations with outside designers in a bid to broaden its appeal.Ruffini has shown in the past that he’s willing to let go when the price is right. He was able to acquire Moncler by using proceeds from the sale of a brand that he founded, called New England, in 2000.The Pinaults are no strangers to fighting tough takeover battles after going head-to-head with Arnault to win control of Gucci. But in recent years the company has walked away from deals when the price wasn’t right, leaving it with 2.5 billion euros in cash.(Updates with Moncler statement in fourth paragraph)\--With assistance from Eric Pfanner, Daniele Lepido, Robert Williams, Albertina Torsoli, Dinesh Nair and Dan Liefgreen.To contact the reporters on this story: Ed Hammond in New York at email@example.com;Geraldine Amiel in Paris at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, ;Ben Scent at firstname.lastname@example.org, Eric Pfanner, Marthe FourcadeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PARIS/MILAN, Dec 5 (Reuters) - The chief executive and top shareholder of puffer jacket maker 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. Shares in the Italian label, which has become a luxury industry darling in recent years after a makeover under CEO Remo Ruffini, surged earlier after Bloomberg reported that it had held exploratory discussions with Kering.
Is Kering SA (EPA:KER) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can be...
Moncler had a market valuation of about 9.8 billion euros as of Wednesday's close on the Milan Stock Exchange. Kering declined to comment, while Moncler did not immediately respond to Reuters request for comment.
LONDON/PARIS (Reuters) - The U.S. threat of tariffs on French goods from handbags to Champagne proved just a glancing blow to giants like LVMH and Kering this week, as investors refused to give up their decade-long love affair with luxury goods. Equity analysts reckon the appeal of companies such as Hermes , whose Birkin handbags sell for $10,000-plus and often have waiting lists, will be undimmed despite attempts to hit their exports as retaliation for European taxation of U.S. digital companies. With a price tag of over 200 billion euros, Louis Vuitton and Christian Dior owner LVMH is the biggest stock by market capitalization on the Paris exchange and is worth twice as much as pan-European planemaker Airbus which is also at the centre of the transatlantic trade war.
French stocks were already under pressure after the US proposed $2.4bn of tariffs on French cheese, champagne, and handbags overnight.
This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...
(Bloomberg Opinion) -- Like expensive gems, luxury goods companies have scarcity value. If Bernard Arnault’s LVMH Moet Hennessy Louis Vuitton SE is allowed to get its hands on Tiffany & Co., the American jeweler is unlikely to come up for sale again. That’s something LVMH’s biggest rivals, Kering SA and Cie Financiere Richemont SA, might want to consider carefully.Financially they could both afford to make counterbids for Tiffany. An offer from either Cartier-owning Richemont or Gucci-owning Kering at the $120 per share price proposed by Arnault would lift their net debt to about 2.5 times Ebitda. That’s not too much of a stretch. Kering also has a 15.7% stake in sportswear maker Puma, worth about $1.8 billion, which it could reuse on something more promising.Both companies are no doubt extremely wary of taking on someone with such deep (and well-tailored) pockets as Arnault. But it’s a hard fight to sit out. Of the two, Richemont has most to lose from an LVMH-Tiffany tie up. The combined Franco-American group would take the Swiss giant’s position as the global leader in luxury jewelry, according to Bloomberg Intelligence.Arnault has a track record of turbocharging the brands he adds to his stable. Take the jeweler Bulgari, which has more than doubled its revenue since being bought by LVMH in 2011, according to analysts at Royal Bank of Canada. If LVMH repeated that trick with Tiffany, it would seriously challenge Richemont’s flagship Cartier brand.It would be a leap for Richemont to take on a lot more debt, especially when it’s still integrating the acquisition of online retailer Yoox Net-a-Porter and is developing a web joint venture with Alibaba Group Holdings Ltd. But these distractions might explain Arnault’s tactics in striking now for Tiffany.As for Francois-Henri Pinault’s Kering, it has lived with higher leverage in the past, although it tried to stick within a range of 1-2 times Ebitda. It certainly has room to expand in jewelry. Along with watches, the category accounted for just 6.8% of its sales in 2018. But many of Tiffany’s products are in the so-called “accessible” luxury segment (sometimes priced at about $1,000 or below), which Kering has been moving away from. The French group got rid of most of its stake in Puma last year to focus on the high-end stuff.Another problem for both rivals is that any counterbid would have to be above the $120 per share on the table, and would probably provoke a response from Arnault. The final purchase price would be even more of a stretch. LVMH has a “balance sheet war chest” of more than $20 billion, according to Deborah Aitken of Bloomberg Intelligence.Of course, a competing bid could be funded partly with shares, but Tiffany might well prefer cash.If Richemont and Kering can’t be enticed, the American company will have to persuade LVMH that it’s worth more without the help of an interloper bidding up the price. With its sales going in the wrong direction that looks difficult. But auction or not, it’s Tiffany’s job to make Arnault pay up.\--With assistance from Chris Hughes.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
* Swiss Market Index hits record high Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Main European bourses closed flat today after the EU agreed in principle to delay Brexit but set no new departure date.
Kering led a luxury goods share rally on Friday after its star fashion label Gucci posted stronger-than-expected sales, demonstrating how some brands have so far managed to counter the hit from protests in Hong Kong. Moncler shares were also rising, up 6% after the Italian puffer jacket maker's third quarter sales beat expectations. The firms joined rivals such as LVMH's Louis Vuitton and Hermes in easing fears of a major hit from months of pro-democracy demonstrations in Hong Kong that have caused them to temporarily close shops and which have kept tourists away.
Europe's retail index gained 1.2%, leading gains among major subsectors. The food and beverage sector led losses on Friday, however, after brewer AB InBev provided a cautious outlook and reported weaker-than-expected quarterly earnings growth, sparked by reduced demand for its beer in Brazil and South Korea. "You have a mechanical effect from that 10% decline in AB InBev, but you can't really generalize.
PARIS/MILAN (Reuters) - Kering's Gucci brand and Italian jacket maker Moncler joined other luxury labels on Thursday in easing fears of a major third quarter sales hit from protests in Hong Kong, as they benefited from brisk business across the rest of Asia. Birkin-handbag maker Hermes and LVMH , which owns Louis Vuitton, have also managed to largely make up for lost business in the Chinese-ruled city, where months of pro-democracy demonstrations have put off tourists and shoppers. The brands were still penalised to some degree, after being forced to temporarily close shops, with Moncler's sales down 40% in Hong Kong in the third quarter and those across the Kering conglomerate as a whole falling 35%.
* European indices, Wall Street rise * UK and Ireland issue positive statement on Brexit * US Chamber sees possible US-China currency deal, tariff hike delay * Pan European STOXX 600 closes up 0.7% * Miners, cars and banks lead sectoral gainers * Luxury shines after LVMH, Dior results * UK-listed packaging companies hit by Mondi results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://email@example.com CLOSING SNAPSHOT: A RAY OF LIGHT ON BREXIT AND TRADE (1554 GMT) "Expectations there will be a partial (trade) deal and rumours of progress being made in Brexit talks are boosting stocks, while depressing bonds," a trader just told us.
* European indices choppy ahead of U.S.-China trade talks * China urges U.S. to halt pressure on Chinese companies, including Huawei * STOXX 600 down 0.2%, DAX flat, FTSE down 0.1% * Luxury shines after LVMH, Dior results * Cars, miners only gainers * UK-listed packaging companies hit by Mondi results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://firstname.lastname@example.org LVMH ON TRACK FOR BEST YEAR SINCE 2010 LVMH shares' rally (+5.4% at the moment) puts the company on track for its best year since 2010, but investors' luxury euphoria could chill on the news that sales in Hong Kong dropped about 25% in the quarter.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Julien Ponthus. Reach him on Messenger to share your thoughts on market moves: email@example.com OPENING SNAPSHOT: CAREFULLY OFF THE BACK FOOT (0840 GMT) European stock markets opened in the red and slightly worse than what futures or spreabetters indications had initially suggested.