Moncler Bucked U.S. Retail Trends in First Quarter

Moncler S.p.A. reported its sales in the Americas grew 28 percent, or 21 percent currency-neutral in the first quarter thanks to the opening of five new stores and growing penetration of high-end U.S. department stores.

The Italian maker of luxury ski wear and outerwear that is now moving into footwear and knitwear, reported growing penetration in Neiman Marcus, Sachs and other high-end department stores that drove growth in the United States.

Though many U.S. department stores continue to close stores and slash sales forecasts, Moncler Chief Corporate Executive Luciano Santel said the company’s department stores partners are allocating more space for Moncler shop-in-shops after seeing how well the brand sold through at full price.

Growth was also aided by the opening of new Moncler stores. The company ended the quarter with 19 stores in the Americas, including 14 in the United States. Last month, it added a second location in Honolulu and on Monday the company announced plans to open a new flagship store on Madison Avenue in New York City this fall.

Moncler’s consolidated revenues grew by $36.3 million, or 18 percent (17 percent c-n) to €237.3 million thanks to 5 percent growth in Italy and 32 percent (30 percent c-n) growth in Asia. While Asia accounted for two thirds of the incremental sales, much of the growth has come from China, where the company’s products are sold at a deep discount to global averages. Santel said Moncler was able to increase its average sales prices in China from 10 percent to 60 percent of global averages during the quarter by phasing in higher priced new product.

Retail revenues from Moncler’s direct-operated stores grew 23 percent (22 percent c-n) to €170.1 million, reflecting both same-store sales growth and the opening of 24 new stores. Moncler ended the period with 175 owned stores and 34 wholesale shop-in-shops, up from 151 and 30, respectively, a year ago.

Wholesale revenue increased 7 percent (5 percent c-n) to €67.2 million, thanks to the good results of its spring/summer 2016 collections.