Burberry's share prices rise after rumours of Moncler takeover swirl

Burberry's share prices are up by more than 7% after reports surfaced that the British outerwear brand's Italian rival Moncler may be considering a takeover bid. 

The surge in share prices came after the trade journal, Miss Tweed, reported that Moncler is bidding for Burberry, which has recently felt the pressures of the luxury market's slump.

Miss Tweed cited several industry sources who said the head of LMVH, an investor in Moncler, was keen to get a deal done with the British retailer.

Moncler told TheIndustry.fashion: "Moncler does not comment on unsubstantiated rumours".

It said there is "no substance to this story" as "this is simply a rumour".

However, shares in Burberry had already risen as high 872p, up more than 7% on Friday’s close of 812p.

Burberry’s share price had previously flopped by about 50% over six months, reaching lows not seen since 2010. This caused the British brand to drop out of the FTSE 100 for the first time in 15 years and left it vulnerable to a takeover.

As a result, the company ousted CEO Jonathan Akeroyd in July with immediate effect "by mutual agreement with the board of directors". He was replaced as Chief Executive by former Michael Kors boss Joshua Schulman, who stepped into the role on 17 July.

Burberry isn’t the only luxury company facing declining revenues as the sector slumps. Kering and LVMH are also feeling the pinch. Last month, Kering, the owner of YSL, Bottega Veneta, Gucci and more, revealed its revenue for the third quarter of 2024 totalled £3.17 billion (€3.8 billion), down by 15% on a reported basis.

On the contrary, Moncler, which also owns the luxury brand Stone Island, reported impressive financial results for the first nine months of 2024. Revenues were up by 6% to £1.5 billion (EUR 1.8 billion).