Moncler, the luxury outdoor apparel group, has reported better-than-expected sales for the first half of the year. The company’s revenues rose by 24% at constant exchange rates, reaching €1.136 billion. This growth was primarily driven by a rebound in the Asian market and a solid performance in the Europe, Middle East, and Africa (EMEA) region. Moncler’s consolidated revenues exceeded expectations, and its operating profit reached €217.8 million, with a margin of 19.2% on revenues, which also exceeded expectations.
However, the net profit for the group was €145.4 million, down from €211.3 million in the previous year. This decline was mainly due to an extraordinary tax benefit of €92.3 million linked to Stone Island in the previous period. If this benefit is excluded, the net profit would have actually increased this year.
Moncler’s own brand performed well, with revenues rising by 29% to €935 million. The brand experienced strong double-digit growth in the second quarter, with a 32% increase in sales. The direct-to-consumer channel also saw a significant rise of 45% in the second quarter. These results are particularly impressive considering that Moncler is best known for its winter clothing, making the success during the spring and early summer months noteworthy.
In terms of regional performance, both Asia and EMEA saw significant revenue growth for the Moncler brand. Asia’s revenues rose by 37%, while EMEA experienced a 29% increase. On the other hand, the Americas only saw a modest rise of 9%. In the Americas, revenue increased by a mere 3% at constant exchange rates. In fact, in the second quarter, revenue in the Americas declined by 5% due to the conversion of Nordstrom from a wholesale to a hybrid business model. This affected the wholesale channel in the region, but the direct-to-consumer channel continued to record solid double-digit growth. Without the Nordstrom issue, growth in the Americas would have been positive in the second quarter. These results stand out in comparison to the recent sales declines reported by other luxury brands in the region.
The acquired Stone Island brand saw a smaller revenue increase of 5%. This growth was primarily driven by Asia and EMEA, with revenue in Asia rising by 17% and in EMEA by 5%. However, the brand struggled in the Americas, with revenue declining by 24%. Moncler attributed this decline to a softer business trend and a more cautious approach from department stores in the region.
Despite the challenges, Chairman and CEO Remo Ruffini remains optimistic. He highlighted the company’s achievement of surpassing €1 billion in group revenues for the first time in its history. Ruffini expressed pride in this significant milestone and credited it to the company’s teamwork, innovative thinking, and customer-centric approach. He also emphasized the company’s focus on driving customer engagement worldwide and expressed confidence in the potential of both the Moncler and Stone Island brands. While acknowledging the uncertain and complex environment, he emphasized the company’s commitment to investing in the organization and its people to maximize the brands’ potential.
Useful links:
– Moncler Official Website
– Stone Island Official Website
