Analysts say the skills and scale of Kering would be helpful in allowing Moncler to develop effective digital distribution

Analysts say the skills and scale of Kering would be helpful in allowing Moncler to develop effective digital distribution

French luxury goods group Kering, owner of the Gucci brand, is reportedly in talks to acquire Italian skiwear maker Moncler.

Bloomberg, citing people with knowledge of the matter, said senior executives at the two firms have "held preliminary discussions about a combination" though there is no certainty the talks will lead to a transaction. Moncler shares spiked 12% at the news, while Kering's rose 1%.

Analysts at Bernstein Research say the "skills and scale of Kering would be very useful" in allowing Moncler to develop effective digital distribution, adding Moncler would also benefit from stronger negotiating power when it comes to store locations.

"A Moncler takeover would do nothing to enhance Kering's position in hard luxury," analysts Luca Solca, Can Yuan and Maria Meita say in their note. "Yet, Kering would clearly benefit from diversification: given the extraordinary success of Gucci, EBIT has become c.80% dependent on it. Moncler would be another step in trying to balance this out. Kering would also secure a first-class management team – assuming they would still all be involved.

"Moncler is a great company, but this deal would not be transformative for Kering, and would still leave the hard luxury issues unresolved."

Kering declined to comment on "market rumours." Moncler did not return request for comment at time of press.

Kering's brands include Yves Saint Laurent, Balenciaga and Alexander McQueen, which helped the company reach total revenue of EUR7.34bn (US$8.2bn) in the first six-months of the year, up 18.6% as reported and 15.2% on a comparable basis. It also achieved a record operating margin of 29.5%.