|Bid||77.30 x 1000|
|Ask||77.40 x 2900|
|Day's range||77.10 - 78.70|
|52-week range||43.70 - 78.70|
|Beta (5Y monthly)||0.31|
|PE ratio (TTM)||45.06|
|Earnings date||19 Feb 2020|
|Forward dividend & yield||0.35 (0.45%)|
|Ex-dividend date||23 Apr 2019|
|1y target est||N/A|
(Bloomberg Opinion) -- Moncler SpA’s hotline just blinged. The brand, sported by Drake in his video for the popular song of that name, is being courted by Kering SA, according to Bloomberg News.Moncler has been a fashion-hit maker itself. If Francois-Henri Pinault’s Kering wants to get its hands on it, the Gucci owner will have to pay a price as rich as that commanded by one of its $1,000-plus down jackets.The Italian brand, with a market capitalization of 11 billion euros ($12.2 billion), would bring a sizable name that’s still capable of growth to Kering, valued at 69 billion euros. It would also usefully reduce the French group’s reliance on Gucci, which now accounts for more than 60% of group sales and 80% of operating profit.Moncler has scope to add further stores, particularly flagship locations, in China. While it has successfully expanded its range of products from its core down jackets into knitwear, there is an opportunity in bags and accessories. Kering’s expertise would bolster these ambitions. Digital marketing skills and the French company’s focus on sustainability could be useful too, as younger luxury buyers’ concerns about natural resources, such as down and fur, shape their buying habits.But Moncler won’t come cheap. Assuming a 25% premium over Wednesday’s closing price, a takeover would cost about 12 billion euros, adjusting for estimated net cash of 550 million euros. That equates to about 20.5 times this year’s likely Ebitda, exceeding the multiple that Kering’s French arch-rival LVMH has offered for the iconic diamond and jewelry brand Tiffany & Co.With Moncler forecast to make about 750 million euros of operating profit in 2023, the returns from a deal would be a mere 5% after tax, unless Kering could turbocharge the business. Given that the target is already well run under Remo Ruffini, its chief executive officer and biggest shareholder, that looks like a tall order. Moncler's operating margin is already strong at about 30%.This wouldn’t be a case of taking a tired brand and rejuvenating it. So the pressure would be on Kering to engineer ways of achieving higher sales in order to earn returns at closer to the 7%-8% level that would make a deal easier to justify.The French house can afford Moncler. Assuming an all-cash deal, net debt would increase from 0.4 times Ebitda to 2.4 times. That’s manageable. Kering also has a 16% stake in sportswear maker Puma SE, worth about 1.6 billion euros, to play with. But a deal would wrap up much of Kering’s acquisition firepower up in a puffer jacket, leaving little room to expand into other areas, such as jewelry.There is better value to be found elsewhere, for example in Britain’s Burberry Group Plc, whose recovery plan has yet to pay off. Kering could also bring the skills it used to reinvigorate the Gucci brand to Prada SpA or Salvatore Ferragamo SpA. While this could mean more upfront investment, there is a much bigger turnaround potential.Although Burberry has no controlling family, Prada and Ferragamo do. So far, they have shown no indications of wanting to sell. A reshuffle of Moncler’s ownership recently reduced Ruffini’s stake to 22.5%Even so, Moncler’s down jackets are best known for keeping out the cold. The company has plenty to help it repel a predator, or more likely, make them pay a bulky price.\--With assistance from Chris Hughes.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Melissa Pozsgay at email@example.comThis 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.
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Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. The potential for greater political tumult in Washington that will engulf the U.S. President following the launch of an impeachment probe into Donald Trump's dealing with Ukraine have put heavy pressure on European stock futures this morning. Not helping sentiment is a profit warning from Pfeiffer Vacuum that it's suffering order delays and expects weaker-than-expected FY results, the latest European (and German) industrial machinery company to cut guidance.
Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Josephine Mason. On the corporate news front, warnings from industrial machinery makers are piling up. The latest comes from Germany's Pfeiffer Vacuum, which warned of delays to orders, cut its FY sales and EBIT margin forecasts in that move that underscores worries about a prolonged European corporate recession and bodes poorly for the upcoming Q3 earnings season.
Asian countries are looking for catalysts beyond China to drive their economies as the Sino-U.S. trade war forces Chinese demand for their exports to shrink. Luring foreign companies to their shores, finding ways to boost domestic consumption and scouring for alternate export markets are part of that policy mix as China's neighbours cope with flagging demand from the mainland, hitherto a large market for Asia in the regional supply chain. Malaysia set up a panel to fast-track investments to woo businesses, and said it approved more than $500 million in proposals this month.
Chinese footwear retailer Belle International has hired Bank of America Merill Lynch (BAML) to help prepare for a Hong Kong listing of its sportswear business this year, said people with direct knowledge of the matter. The firm aims for a valuation of at least HK$20 billion ($2.55 billion) to HK$25 billion for the unit, which distributes brands such as Nike and Adidas, said two of the people. The divestiture comes nearly two years after BAML advised a consortium led by Hillhouse Capital Group and CDH Investments to take Belle private in a $6.8 billion deal completed in July 2017, as traditional retailers battled online competition.
England's Rugby Football Union (RFU) have appointed former British Olympic Association (BOA) head Bill Sweeney as their new chief executive, the two governing bodies confirmed on Tuesday. Sweeney, who has been BOA chief executive since 2013, replaces Steve Brown, who resigned from the RFU at the end of last year after 15 months in charge.