Remo Ruffini and LVMH together to control shares of Moncler

Remo Ruffini, the visionary manager behind Moncler's extraordinary growth, has formed a partnership with the luxury giant LVMH, led by Bernard Arnault, to further consolidate his position as the brand's largest shareholder. A strategic alliance that will see Ruffini strengthen his control over Moncler by leveraging LVMH's financial and strategic power. As part of the agreement, LVMH acquired a 10% stake in Double R, the investment vehicle controlled by Remo Ruffini, which currently holds a 15.8% stake in Moncler. This partnership will allow Double R to acquire additional shares of Moncler over the next 18 months, with the goal of controlling up to 18.5%. Consequently, LVMH will gradually increase its investment in Double R, reaching up to 22% of the holding. This move ensures Ruffini maintains his controlling position in Moncler, while also obtaining LVMH's financial backing. Currently, Ruffini's stake is valued at approximately 2.2 billion euros, based on Moncler's market capitalization of 14.2 billion euros, but this is expected to increase as his stake grows through Double R.

LVMH's investment in Double R is a clear sign of the Arnault family's confidence in Moncler's growth potential – a brand that, since its IPO in 2013, has shown surprising resilience and expansion capability, even considering that Moncler usually does not rely on fashion week runways but on more structured events and activations as well as various collaboration formats. In the first half of 2024 alone, the company recorded an 8% increase in revenues, reaching 1.23 billion euros, while net profits grew by 24.3%, amounting to 180.7 million euros. This growth occurred in a tough year for luxury, and it may have actually laid the groundwork for this alliance, providing Moncler with the stability and resources needed to continue growing in an increasingly tough and oversaturated market. As a result of the operation, LVMH will also gain strategic influence over Moncler, as the Arnaults will have the right to appoint two members to Double R's board and one member to Moncler's board, effectively getting their proverbial "foot in the door."

The partnership with Ruffini is not LVMH's first foray into the Italian luxury market. In 2021, LVMH increased its stake in Tod's to 10%, thanks to an agreement with Diego Della Valle, helping him, through L Catterton, in the delisting process of the brand. This year, L Catterton also invested in rival group Richemont – a familiar strategy from Bernard Arnault's playbook, which he first experimented with in the 1990s, reaping the benefits of having stakes on all sides of the table, so to speak. In recent years, LVMH has been particularly active in terms of mergers and acquisitions, including the $15.8 billion purchase of Tiffany & Co., a majority stake in Off-White, and full control of Emilio Pucci. From this perspective, Moncler could represent a potential bridge to a new expansion area, given that the brand is technically involved in luxury sportswear, a niche but broad sector where it has deep and strong roots. By supporting Ruffini, LVMH not only gains influence over Moncler but secures a foothold in a high-margin, fast-growing brand.