Burberry Shares Soar Amid Rumors of Moncler Acquisition
Luxury fashion giant Burberry saw a significant increase in its stock prices on Monday, rising by 8% following reports from Miss Tweed, a specialist luxury fashion platform. According to Reuters, the platform reported on “growing industry chatter” that Italian luxury brand Moncler is considering acquiring the struggling British fashion house.
Moncler, however, responded to the rumors by stating that it would not comment on “unsubstantiated rumors” surrounding the potential bid. This caused a slight dip in Moncler’s own shares, which were down 0.35%.
Analysts from UBS also weighed in on the potential acquisition, stating that the timing may be surprising given Moncler’s recent acquisition of Stone Island in 2020, which has not met market expectations. Meanwhile, Burberry has been struggling to increase demand during the luxury slowdown, particularly under the leadership of Daniel Lee, who has raised prices for the brand.
In July, Burberry warned investors of an operating loss in the first half of the fiscal year. However, the brand’s chairman Gerry Murphy has stated that they are now taking “decisive action” to become more appealing to their core customers and deliver new and relevant products. Burberry is set to release its H1 FY2025 results on November 14.
In addition to the rumors of Moncler’s potential acquisition of Burberry, Miss Tweed’s report also mentioned that Bernard Arnault, CEO of LVMH (which recently invested in Moncler), is in favor of the deal, according to several industry sources. If the acquisition were to happen, Moncler would become the parent company of its own luxury outerwear brand.
Stay tuned to Hypebeast for updates on this developing story.
