Moncler, the esteemed Italian fashion house, faced considerable difficulties in the first half of this year as a result of the ongoing COVID-19 pandemic. The company reported a substantial operating loss of €35.5 million, marking its first-ever loss in the first six months of 2020. This financial setback can be largely attributed to the widespread lockdowns that severely impacted the luxury goods sector, leading to a sharp decrease in sales throughout the second quarter.
Given the unpredictable nature of the global economy, Moncler has opted not to provide a full-year forecast, highlighting the prevailing uncertainties in the market. Chairman and CEO, Remo Ruffini, expressed concerns regarding the prolonged impact of the crisis and acknowledged that the road to recovery may be lengthy, particularly in certain regions worldwide. The company foresees continued challenges in the upcoming months as consumer behavior gradually adapts to the ‘new normal.’
As a result of the sales plunge by approximately 50% in the second quarter – following an 18% decline in the first quarter – Moncler was compelled to make substantial writedowns amounting to €30 million to account for unsold inventory from its Spring/Summer collection. Such figures starkly contrast with the impressive profits of €102.6 million registered during the same period in the previous year.
Nonetheless, despite these setbacks, Moncler remains a prominent figure in the luxury goods industry, renowned for its iconic puffer jackets. Under the guidance of Ruffini, the company has successfully undergone a transformation, solidifying its position as one of the top-performing luxury groups in the market. In a bid to adapt to the evolving retail landscape, Moncler recently unveiled plans to bring its e-commerce operations in-house. Their objective is to double the share of online business over the next three years, indicating a growing emphasis on e-commerce in the current environment.
Throughout the first half of 2020, Moncler witnessed a surge in double-digit growth in e-commerce sales, underscoring the rising preference of consumers for online shopping platforms. As Moncler continues to navigate the challenges stemming from the pandemic, they remain committed to enhancing their digital capacities to meet the changing demands of their clientele. Despite the uncertainties that lie ahead, Moncler’s resilience and strategic initiatives position them favorably for the journey to recovery in the luxury fashion landscape.
To learn more about Moncler and their latest endeavors, you can visit their official website here. For insights into the impact of COVID-19 on the luxury goods industry, click here.
