Moncler Ruffini: There are no concrete talks at the moment

The owner of the Italian fashion house Moncler´s Mr Remo Ruffini said today that the company is not having any concrete takeover talks. He was referring to the news that the French luxury house Kering (KER) would be in talks to buy Moncler.

– In relation to the rumors reported by certain media, Mr. Remo Ruffini – in his capacity as shareholder of Moncler – would like to clarify that from time to time he maintains contacts and interacts with investors and other sector participants, including the Kering group, in order to explore strategic potential opportunities to further promote the successful development of Moncler. At the moment, however, there is not any concrete hypothesis under consideration, the company release stated later today.

Moncler´s (MONC) shares were slightly down from the highs and were trading up 7,03% to 41,56 euros in Milan on Thursday. The shares hit up over 10 % during the day after the possible takeover news. The French luxury house Kering´s (KER) stock was trading up 0,41 % to 540,30 euros in Paris.



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Moncler stock over 10 % rise in Milan – takeover talks with Kering – Bloomberg

The Italian fashion house Moncler´s (MONC) stock is over 10 % rise in the Milan Stock Exchange today due to the possible takeover by the French luxury group Kering (KER). Bloomberg News was the fist media to publish about the takeover talks between the companies. Moncler´s stock was trading at 43,05 euros, up 10,87%.

According to the news, the companies are in talks of the potential deal of the Italian skiwear maker, Moncler although there is no certainty that the deal would be made. It is expected that the Tiffany takeover of the LVMH Group has been one of the drivers for the French Kering Group to expand as well.

Kering´s (KER) stock was trading up 1,12 % at 544,10 euros. The rival company LVMH was trading also up 0,98 % at 399,90 euros in Paris Stock Exchange.

The Kering House include brands like Gucci, Yves Saint Laurent, Puma and Boucheron and its market cap is 67,9 billion euros compared to Moncler´s 10 billion euros.

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CEO Bogliolo: Tiffany will reach new heights in the LVMH deal

Tiffany´s CEO Alessandro Bogliolo thinks the merge with the French luxury group LVMH will help the company to reach new heights. He commented the merge deal in the company press release yesterday.

-Tiffany has been focused on executing on our key strategic priorities to drive sustainable long-term growth. This transaction, which occurs at a time of internal transformation for our legendary brand, will provide further support, resources and momentum for those priorities as we evolve towards becoming The Next Generation Luxury Jeweler. As part of the LVMH group, Tiffany will reach new heights, capitalizing on its remarkable internal expertise, unparalleled craftsmanship and strong cultural values, Mr Bogliolo said.

The takeover deal was well managed. According to Financial Times, the LVMH CEO Bernard Arnault visited the US in the opening ceremony of the Louis Vuitton leather production plant in Texas in October. The US President Donald Trump was also one of the firsts to know of the acquisition, although no names was mentioned to him, Mr Arnault told the FT reporter yesterday of that Texas-event.

And the business circles are small in the luxury business. For example the CEO of Tiffany, Mr Bogliolo is also a known-person to LVMH from his earlier carrier as a senior position at the Italian fashion house Bulgari, now part of the French luxury group.

The Tiffany takeover or LVMH´s Christmas present is the biggest deal for the company. According to Bloomberg Opinion the deal values the Tiffany about 16 times Ebitda, which is nice compared to the earlier deals in the industry. According to Bloomberg data, the LVMH purchase of Bulgari in 2011, the valuation was 23-24 times, as was the Swiss company´s Swatch purchase of Harry Winston in 2013.

So, what is going to happen next? Will the mergers and acquisitions trend in the luxury business continue? Sure. And all luxury companies are heading to Asia. It is also expected that LVMH will increase the Tiffayny´s presence in the Asian markets and find the best locations for the high-end consumers of Tiffany. All studies show that the biggest growth for luxury brands is coming from Asian consumers in the coming years.

As Mr Arnault told the Financial Times, LVMH is increasing the desirability of the Tiffany brand.

– My goal with Tiffany -as it is for Louis Vuitton or Dior – is that desirability for the brand should be higher in 10 years time than it is right now, he said in the FT interview.

The announced deal will increase the other major luxury brands interest to join the growth race. The French rival Kering, with brands like Gucci, Saint Laurent and Bottega Veneta and the Swiss Richemont, with brands like Cartier, IWC and Piaget, are in the line.

The stock markets have also seen the increase of interest and for example nearly all the major luxury companies were trading up on Tuesday in the Tiffany aftermatch.

LVMH was trading up 0,77 % at 407 euros, Tiffany slightly up 0,01 % to 133 dollars, Kering (KER) up 0,40 % at 546 euros and the UK Burberry (BRBY) up 0,24 % to 2093 pounds. Only the Swiss Richemont (CFR) was trading down, 0,57 % at 76 Swiss francs.

Picture: Luxury watches from LVMH Group: Hublot Big Bang, Tag Heuer, Bulgari

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Microsoft and Tiffany lifted US stocks in the opening

The tech company Microsoft (MSFT) and luxury company Tiffany (TIF) lifted the US stocks in the opening on Monday. Microsoft´s deal with the Pentagon cloud computing service, the value of over 10 billion dollars, raised the company shares. Microsoft was up 2,23 % and was trading at 143,87 dollars in New York.

The shares of the luxury house Tiffany rose over 30 % in the opening, after the French luxury group LVMH (LVMH) has made 120 dollar a share takeover bid of the US company during the weekend.

Tiffany´s shares opened at 127,65 dollars and was trading at 129,95 dollars after some analysts have raised the target price and upgraded their recommendations. Some market analysts think that Tiffany may get also interest from luxury rivals such as the Swiss Richemont (CFR) and the French Kering ( KER).

Richmond was also trading up, 2,93 % at 77,22 francs in Zurich, while the French Kering was trading down 0,66 % at 510 euros in Paris.

S&P 500 -index traded record high, while Nasdaq and Dow Jones are still some behind from their peaks. S&P 500 -index was up 0,5 % to 3039 points, Dow Jones was up 0,51 % to 2709 points and Nasdaq 0,84 % to 8312 points.

In London, where the Brexit-delay is now granted to the end of January 2020 if needed, the FT-SE 100 -index was trading also up 0,15 % to 7335 points. The UK Parliament will debate today about the elections and the possible days for it.



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G7 to talk about environmental and gender issues


The Group of 7 (G7) in Biarritz, France will talk about environmental and gender issues during the weekend meeting. According to the press materials, the G7 will discuss today on Sunday about trade and international security along with the Biarritz G7 final report.

The main focuses in the summit will be gender equality and environmental issues, but the delegates may bring new topics to the meetings as well.  One of the informal discussions is the UK Brexit deal with the EU and it will be seen if the Group will have some kind of statement of the Brexit by tomorrow. The closing press conference will be on Monday pm with the French President Emmanuel Macron.

The G7 have analysed the most effective legislative measures to enhance the gender issues and is offering this initiative to governments to join the partnership.  The advisory council have listed 70 laws and public policies and ask countries to adopt at least one of those and report back next year in 2020. During the year 2020 the US will be hosting the G7 meetings.

The second big issue is environmental questions. Climate change, oceans warming, biodiversity will be key topics also in Biarritz.  The G7 signed the Charter of Biodiversity in Metz and it will be presented for adoption now in Biarritz. During the meeting there will be discussions also about the Green Climate Fund and its actions towards to financing the climate change mitigation actions.

The G7 has also identified three different public and private stakeholder issues to fight global warming. They are the coalition of maritime transport and how the shipping companies can reduce their carbon and pollution, the coalition of energy efficiency in the cooling sector and the coalition of fashion industry.

According to the G7 materials, the fashion industry accounts about 8 % of global greenhouse gas emissions and textile production is having 1,2 billion tonnes of greenhouse gas emissions every year.

“This is more than all of the emissions produced by international flights and maritime transport combined. The fashion sector is also responsible for 17 % of the industrial water pollution worldwide and the microfibres shed by synthetic fabrics are responsible for up to 35 % of plastic pollution in the world oceans”, the report says.

This G7 Fashion Pact, is also signed by Francois-Henri Pinault, the owner of the one of the world’s biggest luxury companies Kering Group (KER). The Group includes brands like Gucci, Saint Laurent and Boucheron with the market cap of 51,9 billion euros.

The G7 countries include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.  The members represent about 40 % of the global GDP, but at that time when the group was established, in 1976, the countries represented 70 % of the global GDP.

















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Kering: Revenue to 7,6 billion euros, +18,8 %

20190324_1538516782124581227451604.jpgThe French luxury group Kering (KER) announced its half year figures, which showed the revenue growth of 18,8 % to 7,6 billion euros. Sales in Asia-Pacific area rose 21 %, in Japan 10%, in Western Europe +14,8 % and in North America +7,3 %.

The sales of the Gucci brand was nearly 20 % reaching to 4,6 billion euros during the first six months 2019. The sales of Yves Saint Laurent rose 20,4 % to 973 million euros and Bottega Venetta´s sales decreased 0, 6 % to 549 million euros. Others, which include also jewellery, rose 23 % to 1,2 billion euros. Online-sales rose 16 %.

According to Kering press release, the gross margin was 5,6 billion euros in the group and ebitda rose 19,6 % to 2,8 billion euros.

The company’s share price declined 2,04 % to 508,90 euros in Paris today. The market cap of the Kering Group is 64,2 billion euros.

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Kering Group sales up 21,8% to 3648 million euros Q1 2019

The French luxury group Kering Group (KER) reported that the sales of the first quarter were up 21,8 % to 3648 million euros. The sales of the Gucci brand products rose nearly 25 % to 2352 million euros.

The Kering said that all regions performed well, particular Asia-Pasific, which showed 29,6 % increase in the sales. Online sales continued also to grow.

According to the company both carryovers and newness made strong success in the Gucci products. The sales in Asia-Pacific rose 35,3 % and in Japan 15,8 %. The sales of Yves Saint Laurent were 497 million euros, up 21,9 %  and Bottega Veneta 248 million euros, down 0,05 %.

At the corporate governance side the Kering announced that it has appointed Ms Sophie L Helias as lead independent directort to speak about the ESG issues on behalf of the Board, with coordination of the Chairman of the Board Francois-Henri Pinault.

Th company is listed in the Paris Stock Exchange with the market cap of 67,9 billion euros.

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