LVMH Buys Stake in Moncler, Gaining Influence on Italian Fashion Brand

LVMH (PAR:MC), the world’s largest luxury conglomerate, has acquired a 10% stake in Double R, the investment firm led by Moncler Chairman and CEO Remo Ruffini. This move secures LVMH a seat on Moncler’s board and a strategic foothold in the Italian luxury brand. Moncler, famous for its high-end outerwear, has seen impressive growth, quadrupling sales over the past decade to nearly €3 billion.

The financial terms of the deal weren’t disclosed. However, as part of the agreement, LVMH will have the option to increase its stake in Double R to 22%. This would allow the investment firm to increase its holdings in Moncler to as much as 18.5% over the next 18 months.

Moncler’s shares jumped as much as 15% in Milan following the news, bringing its market value to about €16 billion ($17.8 billion). In Paris, LVMH shares also rose, gaining up to 3.7%. In addition to Moncler, Ruffini’s leadership extends to Stone Island, a label acquired by Moncler in 2020.

LVMH’s Strategy

LVMH CEO Bernard Arnault praised Moncler as a key entrepreneurial success story in fashion, pledging to support its continued independence. LVMH’s stake in Double R strengthens Ruffini's control over the company, ensuring stability while also providing LVMH a position as a long-term minority shareholder.

The deal is part of LVMH's broader strategy to invest in Italian luxury brands. LVMH owns stakes in other Italian companies such as Loro Piana and Tod’s.

This move positions LVMH to capitalize on Moncler’s continued growth and reinforces its influence in the competitive luxury fashion industry.