STONE ISLAND ACQUIRED BY MONCLER FOR EUR 1.15 BILLION
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Moncler and Sportswear Company, which holds the Stone Island brand, announced that they have reached an agreement as a result of which Stone Island joins Moncler to develop a new shared vision of luxury. With this transaction, united by their "beyond fashion, beyond luxury" philosophy, these two Italian brands will strengthen their ability to interpret the evolving cultural codes of the new generations and the meaning of luxury fashion.
The sale comes just after VF Corporation bought Supreme for USD 2.1 billion, symbolizing streetwear's radical change in scale. After Stone Island owner, Sportswear Company sold a 30% stake to Temasek in a deal run by Rothschild in 2017, the firm has now reached an agreement with Moncler, valuing Stones Island at EUR 1,15 billion. This value corresponds to a multiple of 16.6x 2020A EBITDA (equal to EUR 68 million, 28% margin) and a multiple of 13.5x 2021E EBITDA. It's the first purchase for the Milan-based luxury brand mostly known for its signature puffers and parkas. Between November 2019 and October 2020, Stone Island hit EUR 240 million in revenues, while Moncler recorded a turnover of EUR 1.63 billion in 2019, despite the global pandemic dramatically affecting sales overall.
"Moncler, together with Stone Island, will offer to new generations a new concept of luxury, far from the traditional stereotypes in which young people no longer recognize themselves. We are coming together at a challenging moment both for Italy and the world, when everything seems uncertain and unpredictable. But I believe it is precisely in these moments that we need new energy and new inspiration to build our tomorrow. This is a union of two Italian brands with the same values, the same management rigor, the same passion for innovation, the same love for their people and the same desire for the future,” says Remo Ruffini, Chairman and CEO of Moncler.
Remo Ruffini continues: "I have always worked to build a strong brand where uniqueness and closeness to the consumer have been the cornerstones of a development always beyond trends and conventions. Sharing the same vision leads us today to joining forces with Stone Island to write our future together. Led by an entrepreneur of high renown, Stone Island is a great success story, a company that has built an exceptionally strong relationship with its community, offering a highly distinctive product, as a result of unique technical skills and an absolute clarity in its positioning. It is a story of Italian excellence. Moncler, together with Stone Island, will offer to new generations a new concept of luxury, far from the traditional stereotypes in which young people no longer recognize themselves. We believe in an open and engaged universe, which thrives on community, experiences and cultural exchanges, where communication is always interaction and where the aspirational goes beyond possession to become ‘being part of’ and ‘belonging’“.
Read more about the history of Stone Island: Click here
Carlo Rivetti, Chairman and CEO of Stone Island continues: "Remo and I have decided to combine forces and visions to meet together and with greater strength than ever the challenges we all face. We share the same roots, similar entrepreneurial journeys and the utmost respect for the profound values of our brands and our people. And we are Italians. And so, begins a new chapter for Stone Island, the start of a journey that will help our brand to reach its full potential, while maintaining its strong brand identity and continuing to nurture its culture of research and experimentation. This is a partnership that represents a great opportunity for the continued development of both companies and which will help Stone Island accelerate its international growth thanks to Moncler’s experience in both the physical and digital retail world. This is also an opportunity to share and grow for all the people of Moncler and Stone Island with whose contribution we will continue to write, together, a story of ingenuity, creativity and professionalism to honor Italy in the wider world".
The luxury world has changed a lot, as brands are able to attract a young generation. Since Moncler introduced its Genius collaborative collection three years ago, Louis Vuitton hired Virgil Abloh and Kim Jones moved Dior into a new atmosphere. With this transaction the two Italian brands want to strengthen their positioning, embracing the search for experientiality, inclusivity, a sense of belonging to a community and the mixing of diverse worlds including those of art, culture, music and sport. Both brands shall keep their own identity and autonomy, while sharing knowledge and experience to fully capture the important growth potential in particular of the Americas and Asian markets as well as in the direct-to-consumer channel. Together they form a very strong positioning, while ensuring to not lose their roots and be very clear with their respective customers, not building another luxury group, but something unique for the market that does not exist to date.