Dive Brief:
- Moncler Group posted H1 consolidated revenues of 1.23 million euros, or about $1.33 million, an 8% year-over-year increase from 1.33 million euros, according to a Wednesday earnings release.
- The company’s Moncler revenues for the period were up 11%, with 16% growth in the outerwear brand’s DTC channel offsetting a 7% decline in wholesale sales. At Stone Island, revenues were down 6%, with a 26% rise in DTC sales canceled out by a 25% drop in wholesale sales.
- By region, Moncler saw a 7% boost for H1 in the Americas, and a 12% boost in Asia as well as in the combined region that encompasses Europe, the Middle East and Africa. Meanwhile, Stone Island was up 20% in Asia, but down 12% in EMEA and down 22% in the Americas.
Dive Insight:
While Asia has become a weak spot for many luxury fashion companies, Moncler Group revenues in the region, which for the company includes APAC, Japan and Korea, are robust even against difficult comps.
Moncler H1 brand revenues in Asia were bolstered by growth in Japan, which was “supported mostly by tourists,” per the release. In addition, the company pointed to “positive performance of the Chinese mainland, notwithstanding the tough comparable base and the increase in Chinese consumption abroad.”
Meanwhile, Stone Island’s DTC revenue boost for H1 was driven in part by outperformance in the Asia and EMEA regions, per the release.
“We are very pleased with the solid set of results we delivered in the first half of the year amid a generally complex operating environment for the luxury goods sector,” Moncler Group Chairman and CEO Remo Ruffini said in the release. “Both our brands enjoyed strong growth in the DTC channel across all regions and the Group reached a notable operating profit, exceeding 250 million euros.”
Ruffini added that due to a highly volatile and unpredictable global macroeconomic context, “industry trends are seeing a continued normalisation.”
Competitors in the luxury space recently posted similar cautionary statements. Earlier in July, Hugo Boss cut its earnings forecast for the year following a momentum slowdown reported in May. Burberry Group posted a first quarter retail revenue decline of 22% in mid-July and replaced its CEO. LVMH and Richemont also suffered recent double-digit declines.
However, Ruffini said in the release that while current economic conditions required the company “to maintain a vigilant mindset” and focus on “operational flexibility and responsiveness,” he was optimistic about his firm’s outlook.
“I am confident that the strategic initiatives we are driving at both Moncler and Stone Island, our deep connection with our communities, the continued pursuit of product excellence as well as our focus on high-quality and selective growth, will further strengthen our brands in the coming months and in the years ahead,” Ruffini said.
