In the world of luxury fashion, Moncler and Stone Island are two of the biggest labels. Though the two may have started out with different visions, consumer interest around the two labels has skyrocketed in recent years. However, there was absolutely no signs that the two would eventually become one. That was until about an hour ago when Moncler revealed that it had acquired 100% of Stone Island’s shares for a cool €1.15 billion.
The news, as you can imagine, has shocked many in the fashion industry. As for now, Moncler has purchased more than 50% of the Stone Island brand from Sportswear Company Spa. In the coming months, Moncler will purchase a further 19.9% of other members of the family in this cash deal. Finally, the 30% stake sold to the Temasek fund will be purchased in 2021. According to statements from both Remo Ruffini, Moncler chairman and CEO, and Carlo Rivetti, Stone Island CEO, the acquisition is about ensuring that both brands can reach full potential without competing. Mr Ruffini stated:
“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 recognise 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.'”
Mr Rivetti added that:
“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 honour Italy in the wider world.”
This is huge news, though unexpected, for both Stone Island and Moncler. Stone Island fans around the world may be slightly concerned as to what the future really holds for the brand. Considering the cult following it has garnered for almost 40 years, the sale to Moncler may mark the end of the real Stone Island. However, considering the faith that Carlo Rivetti, the godfather and icon of Stone Island’s success, there is still hope that this acquisition could be a step in the right direction. As always, check back to KLEKTIVE where we’ll cover more on this story as it breaks.