Shares in Burberry Group PLC rose on Monday after a report suggested that Italian luxury goods firm, Moncler SpA, is considering a bid.
According to an article published on Sunday in the specialist luxury online publication Miss Tweed there is ‘growing industry chatter’ that Moncler is mulling a bid for Burberry considering the latter’s significant drop in value over the past year.
In the past 12 months shares in Burberry have fallen 50%. On Monday, shares rose, however, by 4.8% to 850.97 pence each. In Milan, Moncler was 0.1% higher at €50.90.
The report noted Moncler’s appetite to turn Burberry around and potential supply chain synergies between the two fashion brands.
Miss Tweed said any deal would likely involve a mix of cash and shares given that Moncler does not have sufficient cash to be able to buy Burberry.
The report said that Bernard Arnault, the controlling shareholder of LVMH Moet Hennessy Louis Vuitton SE, which has recently indirectly taken a stake in Moncler, is supportive of the deal.
In September, LVMH has purchased a 10% stake in Double R, Remo Ruffini’s investment vehicle, which itself owns 15.8% of Moncler, thereby owning 1.6% of Moncler Group indirectly. Ruffini is chair & chief executive of Moncler.
Miss Tweed said Burberry declined to comment and Moncler did not reply to requests for comment either.
In July, Burberry removed its chief executive after issuing a profit warning and suspending dividend payments for financial 2025.
The firm has pinned its hopes on new CEO, Joshua Schulman, who was boss of US fashion brand Michael Kors from 2021 to 2022. Shulman previously was CEO and brand president at handbag maker Coach.
Burberry has been hit by a number of trading misses, not helped by a deteriorating macro backdrop and falling demand in key market China.
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