Business
LVMH increases influence at Moncler by participating in Ruffini's investment vehicle
The French luxury group LVMH has reached an agreement with Moncler CEO Remo Ruffini to acquire up to 22 percent of his investment company Double R.

LVMH, which is led by Bernard Arnault, initially acquired a 10-percent stake in Double R, a special purpose vehicle through which Ruffini currently holds 15.8 percent of Moncler. This stake can be gradually increased to up to 22 percent. In return, Double R will increase its stake in Moncler to up to 18.5 percent over the next 18 months, thereby strengthening Ruffini's position as the largest individual shareholder of the company.
As part of the agreement, LVMH will be entitled to occupy two seats on the board of directors of Double R and one seat on the Moncler board. Nevertheless, Ruffini will remain chairman and CEO of Moncler and retain control over Double R. LVMH emphasizes that as a long-term minority shareholder, it will support the implementation of Ruffini's vision for the future.
This partnership solidifies Double R's position with Moncler and provides the necessary stability to implement my future strategy," Ruffini said in a statement. Bernard Arnault also commented positively: "Moncler is one of the most outstanding entrepreneurial success stories of the past 20 years. Remo Ruffini's vision and leadership strength are remarkable, and I am pleased to invest in his company to further strengthen his position as a leading shareholder.
Analysts at Barclays Bank estimate that LVMH indirectly holds a stake of about 1.6 percent in Moncler through this deal, which could potentially increase to a maximum of 4 percent with further acquisitions.
The news caused a stir on the stock exchanges: Moncler's stock rose by more than 10 percent on Friday morning, reaching a market capitalization of 15.75 billion euros. LVMH's stock also increased by 2.8 percent. These gains build on an already strong week, fueled by the hope that a new economic stimulus package from China could revive the recently declining luxury goods sales in the region.
Moncler, which also owns the men's brand Stone Island, is among the few luxury companies that have successfully cushioned the economic downturn following the pandemic-induced boom. In the first six months of the year, the company was able to increase its revenue by 11 percent to 1.23 billion euros. Business was particularly robust in China, while many competitors such as LVMH suffered from declining sales in the region.
The ownership structure of Moncler was in flux after the Rivetti family, the former owners of Stone Island, sold their 16.5 percent stake in Double R. This reduced the holding of the vehicle in Moncler to 15.8 percent. The entry of LVMH aims to strengthen the position of Double R and the Ruffini family, as explained by Barclays analyst Carole Madjo.
This is not the first time that LVMH has acquired a minority stake in an Italian fashion company. In 2021, the group secured a stake in the shoe manufacturer Tod’s and supported its delisting from the Milan Stock Exchange in a transaction with the LVMH-backed private equity firm L Catterton.
With over 75 brands, including Louis Vuitton and Dior, LVMH is considered the world's largest luxury goods conglomerate with a market capitalization of 348 billion euros. The investment in Double R could position LVMH more strategically to benefit from a potential further expansion of Moncler while also supporting Ruffini's long-term strategy.