|Bid||59.00 x 0|
|Ask||60.00 x 0|
|Day's range||58.68 - 60.00|
|52-week range||31.22 - 60.00|
|Beta (5Y monthly)||1.04|
|PE ratio (TTM)||50.51|
|Earnings date||27 Jul 2021|
|Forward dividend & yield||0.45 (0.77%)|
|Ex-dividend date||24 May 2021|
|1y target est||37.35|
The chief executive of Moncler said on Thursday that he did not expect consolidation in the Italian fashion market due to a deep history of family ownership of companies, but indicated that he was not constrained by this culture. In a European luxury goods industry dominated by French conglomerates LVMH and Kering, Italian players - most of them family-owned and run - are under pressure from investors to consolidate into larger groups, with fashion brand Moncler often seen by analysts as a possible target. "I do not see consolidation in Italy," Moncler CEO Remo Ruffini said at an online conference on fashion hosted by publisher RCS.
(Bloomberg Opinion) -- There’s a new bling behemoth on the block.Luxury brand Moncler SpA has decided against selling itself to a larger company like Kering SA and has instead made its first acquisition. It will buy fellow Italian casual fashion house Stone Island for 1.15 billion euros ($1.39 billion) in cash and shares from the family shareholders and Singapore’s state investor Temasek.This could be the start of a new phase at Moncler, where it focuses on becoming an acquirer of brands. If it goes down this path, it could eventually even take on Europe’s dominant luxury conglomerate LVMH Moet Hennessy Louis Vuitton SE.That’s a ways off for now — Moncler is valued at about 11.5 billion euros, LVMH is at about 250 billlion — but the recent acquisition is certainly the first step. Known for its outerwear, Stone Island brings Moncler a broader spectrum of garments with which to expand its product lineup as well as a younger customer base. The latter will especially be useful, as people under 45 could make up two-thirds of the luxury market by 2025, according to Bain & Co.That might be why Moncler is paying about 16.6 times 2020 Ebitda (an earnings measure) for Stone Island, slightly more than that of the other big fashion acquisition we saw this fall. Apparel maker VF Corp. paid about 15 times Ebitda for beloved streetwear brand Supreme last month. Moncler shares hit a record high after announcing the deal, echoing VF, which jumped the most in 33 years after it announced its surprise purchase. It seems investors are enthusiastic about these edgier forays. Moncler is also well suited to elevate some of Stone Island’s more tired elements, such as branded hoodies and sweat pants. Not only has the skiwear maker done a good job of transforming the humble down puffer into a sought-after item, it has generated buzz from its collaborations with guest designers to produce limited-release collections. Added investment into Stone Island could turn it into a true luxury outerwear and streetwear label. There is also potential to expand Stone Island geographically, primarily in the U.S. and Asia. It has just 24 of its own stores — some 78% of the company’s sales are through department stores and other retailers — so there is room to increase its retail footprint.It helps that as part of the deal, Carlo Rivetti, Stone Island’s chief executive officer, will join the Moncler board, while he and his family will have about a 4% stake in the combined group. Covid-19 has exacerbated the divide between luxury giants, such as LVMH and Kering, and everyone else. As the industry continues to recover from the pandemic, the biggest players have been able to take advantage of their geographic reach, digital prowess and marketing clout to capture most of the sales. Meanwhile, the smaller companies will more likely need to decide whether to sell out to a conglomerate or forge an independent future like Moncler. Not all will be in as good of a position as the Italian brand, which had net cash of 595 million euros at the end of its second quarter.Of course, adding Stone Island doesn’t mean Moncler won’t eventually surrender its independence once it has established itself as a major owner of luxury brands. But if it can make a success of its new purchase, then it could negotiate a future deal from a position of strength.This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- One takeaway from the third-quarter earnings we’ve seen so far is that consumers are still spending — and they’re reaching for big, well-known brands for everything from food to face cream. This has played out most dramatically in high-end retail, where in some cases wealthy shoppers are buying more expensive goods than they were a year ago.There are a few reasons why this may be. As I have noted, some of the spending is coming from savings accumulated during lockdown, and affluent consumers want to get the most bang for their buck. If they’re reaching outside their regular price range or making their first luxury purchase, that often means shelling out for a household name: Louis Vuitton, Christian Dior or Hermes — all of which have seen strong sales recoveries.It also helps that the biggest companies — LVMH Moet Hennessy Louis Vuitton SE, Hermes International, Cie Financiere Richemont SA and Gucci-owner Kering SA — have the resources to make their brands stand out in a crowded market. They can afford to double down on social media campaigns. Meanwhile, consumers want tried and tested styles, whether that’s a Hermes Birkin bag or a Moncler puffer jacket. With fewer occasions to dress up, as well as an increasing awareness of fashion’s environmental costs, shoppers may decide to buy less, but buy better.All of this favors luxury houses steeped in heritage, such as Hermes, the first high-end group to return to sales growth in the third quarter. The handbag maker was also helped by the fact that it’s less dependent on tourist spending, which accounts for about 20% of sales globally, than its competitors, which see 30% to 35% of sales come from tourists, according to Thomas Chauvet, luxury analyst at Citi.But the shift in demand from cutting-edge to classic may be more of a challenge for Gucci, where sales excluding currency movements fell 8.9% in the third quarter. Its flamboyant aesthetic has won a strong following among younger customers. But it’s now toning down its ostentatious styles to adapt to more conservative tastes.Shoppers reaching for the familiar also creates particular challenges for smaller companies. Given the power of the luxury conglomerates and muscular single-brand groups such as Moncler SpA, there may now be more pressure to sell out to them.Salvatore Ferragamo SpA, for example, hasn’t reported its third-quarter sales yet, but the Italian house’s turnaround efforts have been disrupted by the pandemic. Investors will be watching to see whether Ferragamo and other companies seeking to revive their fortunes, such as Burberry Group Plc, are similarly lifted by the rising luxury tide. Ferragamo denied this week that it held talks with investors over a potential stake sale. But the family-controlled group would be wise not to turn its back on any options. The strides that the mega-brands have made this year will make it harder for smaller houses to gain traction with the wealthiest shoppers, even as a strong recovery in demand for luxury is expected in 2021. Of course, there is a possibility that consumer tastes pivot back toward experimentation when the world returns to some semblance of normality. But that future seems far away and far from certain. Even if shoppers do want less familiar, more edgy designs, companies will need to reach them online and through social media channels. Having the best retail locations and hottest designers will also remain crucial. That means continued investment for all groups, big and small.If life continues to get tougher for more niche brands, the next hot trend in luxury could be a shakeup of industry ownership.This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.