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.

Business Finance

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

Business Finance Lifestyle

Baselworld2019: New innovations for luxury

It is spring time in Baselworld2019. This year will mark the fairs even more towards innovations and creativity. The global number one place for luxury watches and jewellery is also presenting the best of new innovations but with traditional expertise and knowhow.

The Swiss Watch Industry itself recorded last year a 6,3 % increase in exports and the total turnover was 21,2 billion Swiss francs. So luxury industry matters and it is an essential part of the country’s gross domestic product.

ComteamPUB+ will share with you the best innovations and trends from Baselworld.

Business Lifestyle Tech

FT: Luxury online Farfetch planning an US IPO

The British luxury online-retailer Farfetch is planning an US IPO. According to the Financial Times, the company has hired investment bankers from JPMorgan and Goldman Sachs to lead the offering. The company is selling brands like Gucci, Fendi and Valentino. The company nor the bankers did not comment the FT news.

This London based company is one of the few tech companies at the row valued more than billion dollars, the newspaper says. The luxury online markets have been growing steadily and for example last year the growth figures were double digit.

The companies in the markets are active and for example the Swiss luxury giant Richemont (CFR:SW)  announced in the late January a tender offet to buy Net-a-Porter (YNAP:MI), the word largest online luxury retailer. The Swiss company is planning to have the majority of the Milan based online-luxury retailer, while it owns 49 % of the platform at the moment.

Business

Luxury brands gained due to EU court ruling

The European luxury brands gained in the European Stock Exchanges today. The reason behind the upward trend was the EU court ruling saying that the luxury brand owners can have a say in which digital platforms the retailers can sell their luxury products.

Many luxury companies have been worried over the brand imago related to different digital platforms. The EU court ruling lifted stocks like Kering Group (KER) by 0,56 %, LVMH (LVMH) by 1,14 %, Burberry Group (BRBY) in London by 0,64 % and  Christian Dior (CDI) in Paris by 1,28%.

Global luxury brands have been building their digital presence and imago via social media during the couple of years, but also starting their own e-commerce platforms in order to make the customer dialoque direct and to keep the service level and personalization as expected.

Business Lifestyle