The 2024 curse also hits Moncler. After a positive six-month period, the Remo Ruffini-led group saw negative signs in third-quarter sales. The difficulty, for now, seems to worry neither the company nor analysts.
The curse of 2024
In the first nine months of 2024, Moncler Group sales amounted to 1.87 billion euro, up 3% at current exchange rates compared to the same period in 2023. In the third quarter (July-September), however, revenue fell 3%, or below consensus estimates. According to the company, the falling yen (the Japanese currency), declining consumer confidence, and reduced purchasing power were some of the factors that slowed growth in key markets.
Brand performance
The Moncler brand, in the nine months, grew by 5% to 1.57 billion euro. Relative to the third quarter, revenue fell 3%, dragged down by the wholesale channel. This result was also slightly below consensus expectations. Stone Island brand revenue fell 6% in the nine months, to 292.4 million euro, and was down 4% in the third quarter.
Chinese difficulty
Revenue in Asia fell 2% year-on-year in the third quarter, confirming Ruffini’s admitted difficulties in China. Moncler Group’s figures should be read with the fact that both brands want to boost direct-to-consumer sales and reduce wholesale. This entails sacrifices in the short term but economic returns in the long run. During the conference call with analysts, Luciano Santel, the group’s Chief Corporate and Supply Officer, provided reassurance on the group’s full-year margin: “The operating margin target implied in the consensus forecast is challenging but not impossible”, WWD reports.
Analysts’ view
For Citi’s Thomas Chauvet, “Moncler continues to offer above industry average growth in the medium to long term. It’s supported by growth opportunities in the U.S. and China, pricing potential, expansion in the non-outwear sector, and the hidden value of Stone Island. So, we maintain the Buy rating”. Luca Solca of Bernstein is also positive: “What matters most is the fourth quarter. The company’s comment that consensus expectations are achievable seems encouraging”.
In photo, look and leather accessories from moncler.com
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