Moncler, the renowned Italian fashion group, has exceeded expectations with its impressive sales figures for the first quarter of this year. Despite facing the impact of new Covid-19 restrictions, the company reported a 60% increase in sales. This remarkable growth was primarily driven by strong performance in China, where there was a surge in sales. Furthermore, Moncler experienced significant growth in the United States and online.
In the first quarter, Moncler’s revenues reached €589.9 million ($622 million), a substantial increase compared to the same period last year. These sales figures surpassed the consensus estimate of €564 million provided by analysts. These outstanding results come ahead of Moncler’s upcoming investor presentation, marking the first presentation since the outbreak of the pandemic and the acquisition of streetwear brand Stone Island in 2020.
Although Moncler, like its competitors, has witnessed sales growth in Europe and the United States as Covid-19 restrictions ease, it has faced challenges in its key Chinese market. Strict lockdown measures have been implemented in Shanghai and other cities in China since March, leading to the closure of about 30% of Moncler’s stores in the country. However, sales in China showed double-digit growth in the first quarter despite these restrictions.
While China accounts for just over a third of Moncler’s retail sales in 2021, analysts believe that the brand is less exposed to the current situation in China compared to its competitors. This is because a significant portion of Moncler’s first quarter sales occur in January and February, with the second quarter being less important for the company’s annual earnings.
Moncler’s main brand, known for its iconic puffer jackets and outdoor clothing, achieved a 29% growth in global quarterly sales. The brand reported sales of €473.4 million in the first quarter, surpassing the average analyst estimate of €459 million. Stone Island, since its consolidation into Moncler’s accounts in April, also performed well with sales reaching €116.5 million, exceeding the expected €105 million.
Despite concerns surrounding the war in Ukraine and rising inflation, Moncler’s Chairman and Chief Executive, Remo Ruffini, remains optimistic about the future. Analysts from UBS predict that Moncler will benefit greatly from the resumption of tourism in Europe. They highlight that the six months from March to August only account for one-third of the company’s annual sales, mitigating the potential risk of prolonged lockdowns in China.
Overall, Moncler’s impressive first quarter sales demonstrate the resilience and adaptability of the fashion industry during challenging times. The company’s strong performance in China, along with growth in the United States and online, solidifies its position as a leading player in the luxury fashion market. With ongoing optimism for the future and the return of tourism, Moncler is well-positioned for continued success.
Useful Links:
1. Bloomberg: Moncler Sales Surge in China Despite Lockdowns in First Quarter
2. Vogue Business: Moncler Q1 2021 sales rise despite China’s Covid restrictions
