Moncler sees an increase in sales in the first half and sets plans for Stone Island – WWD

LONDON – The Moncler group surged in the first half of the year, beating analysts’ expectations with a 46% increase in group revenue to 918.4 million euros at constant exchange rates, supported by increases at two figures at Moncler and Stone Island and a “strong response” to the spring 2022 collections.

Sales were about 3% above consensus, while EBIT was 18% above market expectations, according to Bernstein, who called the results “reassuring”, and the Moncler group as the one of the best performers of this last period of luxury profits. Barclays called the numbers “strong”, as did UBS analysts.

Moncler brand sales increased 27% to 724.3 million euros at constant currency, with second-quarter growth exceeding pre-pandemic levels in all markets except China. ‘APAC.

The group’s Asia region, which includes APAC, Japan and South Korea, grew 16% in the first half thanks to strong double-digit growth in the second quarter in South Korea and Japan. Revenue in South Korea more than doubled from pre-pandemic levels in the second quarter, while Japan followed with “solid and accelerating growth” from the previous quarter, the group said.

In Asia-Pacific in particular, Moncler’s performance was negatively affected by the lockdowns in mainland China. About a third of stores were closed in April and May, although the group said June showed a “strong improvement” after those units reopened.

In EMEA, revenue grew 42%, driven by “solid demand” from locals, and US tourists in particular. France, the Middle East and Germany contributed the most to Moncler’s growth in the second quarter.

Revenue in the Americas increased 28%, with the United States leading the increase.

Stone Island’s first-half revenue reached €194.1 million, up 33% on a pro forma basis. The activity was consolidated on the group’s balance sheet in April 2021.

Remo Ruffini, Chairman and CEO of Moncler, said the first half was marked by high macroeconomic and geopolitical instability in Ukraine and Russia, lockdowns in China and severe supply chain disruptions.

Despite these macroeconomic pressures, he said the group had exceeded expectations, thanks to the contribution of Moncler and recently acquired Stone Island.

“While the global context remains uncertain and volatile, we approach our most important part of the year with confidence, supported by our strategy and the operational flexibility that have always distinguished us, as well as a financial solidity and a clear vision oriented towards the continued strengthening of brands,” said Ruffini.

On the analysts’ call Wednesday night, Ruffini gave special praise to South Korea, a market he described as “best in class and one of the most dynamic regions” for the group.

Looking ahead, he said Moncler must play a “long game” when it comes to growth and must remain nimble. “There can be no shortcuts,” he said.

In the second half, he also noted that the group would celebrate two anniversaries – a 70th milestone for Moncler and a 40th for Stone Island.

Roberto Eggs, director of business strategy and global markets, said he was “pretty confident” that China’s rebound would continue in the second half, given that there are no more COVID-related lockdowns. -19.

He noted that there was a positive response to the soft launch of Moncler’s brands on Tmall, and nearby markets such as Taiwan, Hong Kong and Macao were also coming back to life.

Behind the scenes at Moncler Genius, fall 2020.

Kuba Dabrowski/WWD

Like Ruffini, Eggs noted that Korea remained buoyant and was one of the “most resilient markets during the pandemic.”

Eggs added that Europe benefited from a flood of spendthrift American tourists who accounted for around 10% of second-quarter sales in EMEA. “In Europe, American tourists are back but Japanese and Chinese are still missing,” he said.

The group’s EBIT during the period almost doubled to 180.2 million euros, with a margin of 19.6%, while net profit almost quadrupled to 211.3 million. The increase in net income is partly explained by an exceptional tax benefit of 92.3 million euros related to Stone Island.

The group’s net financial position amounted to €356.3 million, compared to €729.6 million as of December 31 and €233.9 million as of June 30, 2021. The company announced dividend payments , a stock buyback program and an initial tax payment related to Stone Island. contributed to the lower sum.

The company has big expansion plans for the second half, its golden sales period. Fifteen Moncler and Stone Island stores will open, for a total investment for the year which should reach 160 million euros.

There are 238 Moncler stores and 54 Stone Island stores worldwide.

The group said it also took control of Stone Island’s distribution network. In the United Kingdom, the brand’s leading European market, Moncler took control of e-commerce and the Brewer Street store in London’s Soho. There are also plans to open concessions at Harrods and Selfridges within the next 18 months.

Moncler Group has signed a joint venture agreement for Stone Island operations in South Korea, while later this year a new Stone Island store concept will open in Chicago. According to Eggs, the interior design will encourage customers to “live and experience the brand” when shopping.

The group has also focused on cultivating its appeal throughout the year.

While Moncler may have made a fortune selling shapely puffer jackets, it has expanded its reach via the Moncler Genius brand and designer collaborations; the new focus on Grenoble skiwear and tech-driven outerwear, and the acquisition last year of high-end street brand Stone Island.

Earlier this year, however, Ruffini’s decision to focus more on the Moncler and Grenoble brands and adjust the Moncler Genius strategy was one of the reasons the company’s shares fell nearly 6%. in a single day in early May.

Shares fell after Ruffini told a capital markets day that Moncler Genius could also be about “art, music, movies, sports” in addition to fashion. His announcement coincided with a move by the US Federal Reserve to raise interest rates, which rattled markets around the world and dragged stocks lower.

A Moncler spokesman said the strategy presented at Capital Markets Day in May was “well received” by analysts and investors.

Lynn A. Saleh