Shares in Burberry surged by as much as 8% on Monday following reports from Miss Tweed that Italy’s Moncler may be exploring a bid for the British luxury group. Moncler, famed for its iconic puffer jackets, responded to these rumors on Sunday, stating it would not comment on "unsubstantiated" news regarding a potential merger. Meanwhile, Burberry, valued at nearly £3 billion ($3.9 billion), also declined to address the speculation. At 0930 GMT, Burberry’s stock was up by 4.5%, while Moncler’s shares dipped slightly by 0.35%, underperforming its sector.

Speculation around this possible merger has drawn mixed reactions, with Italian brokerage Intermonte calling the prospect “unlikely,” citing the risks Moncler would face in attempting to revive Burberry. UBS analysts echoed this caution, noting the challenges Moncler has already encountered in its acquisition of Stone Island in 2020, which has not met market expectations so far. Known for its classic English designs in camel, red, and black check patterns, Burberry has struggled to regain demand amid stiff competition. The British luxury brand, which issued a profit warning and canceled its dividend in July, is set to release its half-year results on Nov. 14.