Moncler S.p.A. (Group) reported that consolidated revenues for the first half of 2024 ended June 30, increased 11 percent year-over-year in constant-currency terms to €1.23 billion. In reported euro terms, sales rose 8 percent for the H1 period versus the year-ago 2023 H1 period.

These results include Moncler brand revenues of €1.04 billion and Stone Island brand revenues of €188.9 million. In the second quarter, Group revenues were €412.2 million, up 3 percent CC compared to the same period of 2023. The Moncler and Stone Island brands recorded revenues equal to €336.3 million and €75.9 million, respectively in Q2.

Moncler Brand
Moncler brand revenues were €1.04 billion in the first half, an increase of 15 percent in constant-currency (CC) terms compared to the first half of 2023.

In the second quarter, revenues for the Moncler brand amounted to €336.3 million on growth of 5 percent CC year-over-year (YoY). The gain came despite what the company said was a very high comparable base, supported by solid growth recorded in the direct-to-consumer (DTC) channel, to which “all regions contributed positively.

Moncler Brand Region Review

Asia Region
In Asia, which includes APAC, Japan and Korea, H1 revenues were €513.0 million, up 19 percent CC compared to the first half of 2023. In the second quarter, revenues in the region grew by 6 percent CC year-over-year, driven by strong growth registered in Japan, supported chiefly by tourists and by the positive performance of the Chinese mainland, notwithstanding the tough comparable base and the increase in Chinese consumption abroad. Korea and the rest of APAC showed softer trends.

EMEA Region
EMEA recorded revenues of €380.6 million in H1 2024, increasing 12 percent CC compared to H1 2023. In the second quarter, revenues in the region increased by 6 percent CC year-over-year, supported by solid tourist purchases as well as positive local consumption. Chinese, American and Korean customers remained the strongest contributors to tourist purchases in the region.

Americas Region
In the first half of 2024, revenues in the Americas increased by 8 percent CC compared to H1 2023. In the second quarter, revenues in the region were down 1 percent CC year-over-year, with the positive performance registered in the DTC business offset by the decline in the wholesale channel.

Moncler Brand Channel Review

DTC Channel
In the first half of 2024, the DTC channel recorded revenues of €875.7 million, up 19 percent CC compared to the first half of 2023. Revenues in the second quarter of 2024 increased by 8 percent CC year-over-year, notwithstanding a very high comparable base. All three regions recorded positive growth, with EMEA outperforming largely due to the contribution of tourist consumption. The growth in the DTC channel in the second quarter was penalized by the weak performance of the direct online channel across all regions.

In H1 2024, revenues by stores open for at least 12 months (Comp Store Sales Growth) grew by 14 percent compared to H1 2023.

Wholesale Channel
The wholesale channel recorded revenues of €165.5million in the first half of 2024, a 5 percent CC decline compared to H1 2023. In the second quarter, revenues in this channel declined by 5 percent CC year-over-year, mainly impacted by the ongoing efforts to upgrade the quality of the distribution network.

As of June 30, 2024, the network of Moncler mono-brand boutiques comprised 277 directly operated stores (DOS), with two net openings compared to March 31, 2024, including the conversion of Macau Four Seasons and the opening of JiNan Mixc in China. The Moncler brand also operated 56 wholesale shop-in-shops (SiS) in the first half.

Stone Island Brand
In the first half of 2024, Stone Island brand revenues reached €188.9 million, a decrease of 5 percent CC compared to H1 2023.

In the second quarter, revenues for the brand amounted to €75.9million, down 4 percent CC year-over-year, with strong double-digit growth in the DTC channel almost entirely offsetting the decline in the wholesale channel.

Stone Island Brand Region Review

Asia Region
Asia, which includes APAC, Japan and Korea, reached €46.7 million in revenue in the first half of 2024, growing 27 percent CC compared to H1 2023. In the second quarter, the region grew by 27 percent CC, mainly driven by the strong performance of Japan and solid growth in APAC. Trends in Korea remained softer than other areas of Asia.

EMEA Region
In H1 2024, EMEA, which continues to be the most important region for the brand, recorded revenues of €128.9 million, a decrease of 12 percent CC compared to H1 2023. In the second quarter, revenues were down 11 percent CC year-over-year, with the strong double-digit performance in the DTC channel not enough to fully offset the decline in the wholesale channel.

Americas Region
In the first half of 2024, revenues in the Americas region were down 21 percent CC compared to the first half of 2023. In the second quarter, the region saw a decline of 15 percent CC year-over-year. The positive performance of the DTC channel in the quarter was more than offset by the decline in the wholesale channel, which continued to be impacted by challenging trends, mostly among department stores, and by ongoing efforts to upgrade the quality of the channel.

Stone Island Brand Channel Review

DTC Channel
In the first six months of 2024, the DTC channel revenues reached €92.6million, +29 percent CC compared to H1 2023, representing 49 percent of total H1 2024 revenues. In the second quarter, revenues in this channel were up 27 percent CC year-over-year, thanks to a positive contribution from all regions, with Asia and EMEA outperforming the other regions.

As of June 30, 2024, the network of Stone Island mono-brand stores comprised 85 directly operated stores (DOS), a net increase of 2 units compared to 31 March 2024, including the opening of Vienna Kohlmarkt. The Stone Island brand also operated 13 mono-brand wholesale stores.

Wholesale Channel
In the first half of 2024, the wholesale channel recorded revenues of €96.3million, down 24 percent CC compared to H1 2023. In the second quarter, revenues declined by 28 percent YoY, impacted by challenging market trends in this channel and the strict volume control adopted to continuously improve the quality of the network.

Consolidated Group Income Statement
In the first six months of 2024, consolidated gross profit was equal to €943.1million, with gross margin of 76.7 percent of revenue compared to 74.9 percent in the H1 period of 2023. The increase in margin was said to be primarily driven by the positive channel mix, with a higher incidence of the DTC channel at both Moncler and Stone Island.

Selling expenses in the first half of 2024 were €419.3 million, compared to €374.7 million in H1 2023, with a 34.1 percent incidence on revenues, higher than in the same period of 2023 (33.0 percent) due to the ongoing shift towards a DTC-led business model. General and administrative expenses were €166.3 million, with a 13.5 percent incidence on revenues reflecting continuous investments in the organization, compared to €156.9 million in the first half of 2023 (13.8 percent on revenues). In the first half of 2024, general and administrative expenses included a one-off income of €7.5 million related to an insurance refund received following the December 2021 malware attack.

Marketing expenses were €98.8 million in the first half, representing 8.0 percent of revenues, compared to 8.9 percent in the first half of 2023. The lower marketing spending in the first half of 2024 vs. H1 2023 (and the related lower incidence on sales) is entirely due to a slightly more-balanced phasing of marketing activities in H1 vs H2 compared to the previous year. Management continues to expect an incidence of marketing expenses on revenues of around 7 percent at year-end, in line with the previous fiscal year.

Depreciation and amortization, excluding those related to the rights of use recorded in application of IFRS 16, were €60.4 million, compared to €54.6 million in H1 2023.

Group EBIT was €258.7 million with a margin of 21.0 percent, compared to €217.8 million in H1 2023 with a margin of 19.2 percent.

In H1 2024, net financial expenses were €1.6 million, compared to €11.3 million in the first half of 2023. The decrease was driven by a higher level of interest income due to higher interest rates and better cash management.

The tax rate in the first half of 2024 was equal to 29.7 percent compared to 29.6 percent in H1 2023.

The Group’s net profit amounted to €180.7 million, compared to €145.4 million in H1 2023.

Consolidated Group Balance Sheet and Cash Management
As of 30 June 2024, the net financial position (excluding the effect related to IFRS 16) was said to be positive and equal to €845.8 million compared to €1.03 billion of net cash as of December 31, 2023 and €470.7 million as of June 30, 2023. The variation recorded in the first half of the year was mainly due to the payment of €303.1 million in dividends. As required by the IFRS 16 accounting standard, the Group accounted lease liabilities equal to €815.8million as of 30 June 2024 compared to €805.2 million as of December 31, 2023 and €837.7 million as of June 30, 2023.

Net consolidated working capital as of half-end was €262.2 million compared to €242.2 million as of June 30, 2023, equal to 8.5 percent of last-twelve-months revenues (8.6 percent as of June 30, 2023), reflecting the continuous and rigorous control of working capital levels at both brands, Moncler and Stone Island.

In the first half of 2024, net capital expenditures were €56.1million compared to €69.5million in H1 2023, due to a different phasing of spending in H1 vs. H2 compared to the previous year.

Investments related to the distribution network were equal to €30.8million and investments related to infrastructure were equal to €25.3million, mainly focused on IT and digital projects.

Management continues to expect an incidence of capital expenditure on revenues of around 6 percent at year-end, in line with the previous fiscal year.

Net cash flow in H1 2024 was negative €187.8 million after the payment of €303.1 million of dividends (out of the total approved dividend distribution of €310.7 million), compared to a negative net cash flow of €347.5 million in H1 2023.

Significant First Half Events

Moncler Japan
On March 28, 2024, Moncler Japan Corporation acquired from the Japanese shareholder (Yagi Tsusho Ltd) the remaining share of its stake in Moncler Japan Corporation, equal to 5.06 percent of the share capital, for an outlay of €9.3 million. Following this purchase, Moncler, through the subsidiary Industries S.p.A., holds the entire share capital of Moncler Japan Corporation.

Business Outlook
The global macroeconomic context is highly complex and volatile, and trends in the luxury goods industry are seeing an ongoing normalization.

In light of this uncertain landscape and evolving market dynamics, the Group maintains a prudent mindset, focusing on operational flexibility and responsiveness. It continues to invest in its organization and people to further strengthen its operating execution and aim to remain on a solid growth path.

Image courtesy Moncler