Investing.com -- Shares of Moncler jumped on Friday after LVMH said it had purchased a 10% stake in Double R, the investment vehicle of Remo Ruffini, which holds 15.8% of Moncler.This acquisition indirectly grants LVMH a 1.58% stake in Moncler Group. Additionally, LVMH will secure one board seat at Moncler and two seats on Double R, reflecting its continued expansion into the luxury outdoor and performance wear market.
LVMH will fund these future share purchases, which will also increase its own stake in Double R up to a maximum of 22%. “In the absence of share buybacks for LVMH , and a lack of credibility and sufficiently large take-out targets, we view minority investments into already established groups as the next best alternative use of excess cash,” RBC added
This investment comes at a time when the luxury sector is witnessing rapid growth, particularly in the outdoor and active lifestyle segments, where Moncler has already carved out a strong position.