Moncler reported revenues grew 18 percent in currency-neutral (c-n) terms in the nine months ended Sept. 30 on strong overseas sales of its luxury ski wear and fashion apparel.

The Italian company reported revenues of €449.3 million ($609 mm) for the period, an increase of 16 percent at current exchange rates. In c-n terms, revenues declined 1 percent to €103.9 million ($141 mm) in Italy; grew 14 percent to €163.8 million ($222 mm)  in EMEA excluding Italy; grew 35 percent to €127.7 million ($173 mm)  in Asia and Rest of the World and 36 percent to €54.0 million ($73 mm) in the Americas.

Retail sales grew 28 percent c-n to €219.5 million ($298 mm), while wholesale revenues grew 9 percent c-n to €229.8 million ($312 mm). Same-store sales slowed slightly to 7 percent compared with the first six months of the year.

Moncler operated 163 mono-branded stores at the end up of the quarter, up 20 from Dec. 31, 2013. That included eight in the United States, where the company has
established stores in Aspen, Atlanta, Chicago, Honolulu, Los Angeles,
Miami-Bal Harbour and New York, where it operates a shop-in-shop in
Bergdorf Goodman and a boutique on Prince St. It also operated 26 shop-in-shops, or eight more than at the end of last year.

Gross margin rose 80 basis points (bps) to 70 percent thanks to strong growth in the retail channel. Selling expenses reached 26.2 percent of revenues, up 140 bps, while general and administrative expenses were 10.4 percent of revenues, down 60 bps. The company spent €33.3 million, or 7.4 percent of revenues, on advertising, compared to €29.3 million in the first three months of 2013.

Adjusted EBITDA rose 18.7 percent to €136.1 million, or 30.3 percent of revenues, up 80 bps from the same period in 2013. Net income reached €70.5 million, or 15.7 percent of revenue compared with $38.3 million a year earlier when the company reported net losses from discontinued operations of €13.6 million.

Moncler ended the period with inventory valued at €130.9 million, roughly flat with a year earlier. The company increased its capital spending by €15.6 million, or 63.9  percent, to €40.0 million during the nine months as it ramped up store openings, its showroom in Milan and IT infrastructure compared with the nine months ended Sept. 30, 2013.

Moncler has since agreed to establish a joint venture with its Korean distributor, Shinsegae International, to consolidate and expand Moncler’s brand and retail channel in Korea. Moncler will own 51 percent of the joint venture through an affiliate.