Moncler’s Sales Jump 61 Percent In First Quarter

Moncler SpA posted higher revenue for the first quarter with strength in Moncler and the recently-acquired Stone Island fashion brand.

The Italian luxury apparel company, known for its winter puffer jackets, reported revenue of €589.9 million ($620.5 million) in the quarter, up 61 percent from €365.5 million in the year prior. Sales were up 60 percent on a currency-neutral basis.

Moncler Brand revenues for the first quarter totaled €473.4 million, up 30 percent compared to the first quarter of 2021. Sales grew 29 percent at constant exchange rates year-over-year and 29 percent compared to 2019. Compared to pre-pandemic levels, the Moncler Brand saw solid double-digit growth in all channels and regions.

China for the Moncler Brand grew double-digits in the quarter compared to the same period last year despite lockdowns in March. Revenues in China doubled compared to Q119.

Stone Island Brand revenues equaled €116.5 million, up 32 percent on a proforma basis compared to €88.1 million in the first quarter of 2021.

Remo Ruffini, chairman and CEO of Moncler S.p.A., commented: “2022 began with important results for our Group. During the quarter, revenues grew 60 percent compared to the previous year, with a strong contribution from both our brands. In particular, Moncler recorded an excellent performance compared to pre-pandemic levels, with all regions up strong double-digits and DTC and USA accelerating further.

“Yet, as I often say when commenting on the first quarter, the year has just begun. And today is even more important given the ongoing health emergency in some parts of the world and the conflict in Ukraine. However, I remain optimistic about the future. We have brands with strong unexpressed potential and yet unexplored territories, communities to be strengthened and new ones to reach, a flexible organization, ready to master the challenges and welcome the opportunities of the sector, underpinned by a strong and distinctive vision to be a continuous source of inspiration.

“The coming years will witness a new phase in the development of the Moncler Group, which we are prepared to pursue with the support of all our stakeholders, starting from the newly elected Board of Directors,” he concluded.

Moncler brand: Revenues by Geography

In Asia (which includes APAC, Japan and Korea) revenues in the first quarter registered a +15 percent cFX (currency-neutral) growth compared to the same period of 2021 (+37 percent cFX compared to Q1 2019) with solid performance in all areas. In particular, APAC was driven by the double-digit growth of China, despite results in March having been impacted by the lockdowns in some cities, including Shanghai and Shenzhen, and the consequent closure of about 10 percent of DOS. Lockdowns continued in April, and currently about 30 percent of stores are temporarily closed. Japan also performed well as well as Korea, which continued to significantly outperform the average of the region.

In EMEA, revenues increased by 48 percent cFX compared to the first quarter of 2021 and +11 percent cFX compared to Q1 2019. These excellent results were achieved thanks to the strong demand of local consumers which drove, in particular, the DTC channel notably in Germany, United Kingdom and Spain.

The Americas registered a +36 percent growth compared to the first quarter of 2021 (+40 percent cFX compared to Q1 2019), with a solid growth in all markets and channels, in particular in the direct online one.

Moncler brand: Revenues by Channel

In the first quarter of 2022, the DTC channel reached revenues of €377.2 million up +34 percent cFX compared to the same period of 2021 (+32 percent cFX compared to Q1 2019), with a solid growth in all regions. The digital channel continued to record strong double-digit growth rates, tripling its contribution compared to pre-pandemic levels. The .com performed exceptionally well in all markets, in particular in EMEA and the Americas. The physical retail channel also reported excellent results, with higher revenues compared to the first quarter of 2019 also in EMEA, despite the continued absence of international tourists especially Asian travelers who are very important for this area.

The wholesale channel registered revenues equal to €96.2 million growing 12 percent cFX compared to the same period of 2021 (+12 percent cFX compared to Q1 2019), supported by the great appreciation of the Spring / Summer collections.

As of March 31, 2022, the network of mono-brand Moncler boutiques counted 238 directly operated stores (DOS) and 65 wholesale shop-in-shops (SIS), an increase of one unit in both channels compared to December 31, 2021.

Analysis Of Stone Island Brand Revenue

In the first quarter of 2022, Stone Island generated €116.5 million revenues, up 31 percent compared to €88.1 million registered in the same period of 2021, which were not consolidated in the Group’s results, and +67 percent compared to the first quarter of 2019. Please consider that Stone Island consolidation started on April 1, 2021.

EMEA, which is the most important region for Stone Island, grew by 23 percent cFX over the period and contributed to 73 percent of total revenues. This growth was driven by Italy, which represents about 25 percent of the Brand’s total revenues, and by the United Kingdom and France. Asia contributed to 16 percent of Stone Island revenues growing 61 percent cFX compared to the first quarter of 2021. This performance benefited not only from a solid organic growth in key markets but also from the conversion from wholesale to retail of the 23 existing mono-brand stores in Korea. Indeed, starting from January 1, 2022 a joint venture majority-held by Stone Island is active in Korea to directly manage the market, which was previously controlled by a distributor. For Stone Island, Korea is the most important Asian country and accounts for about half of the revenues of the region.

Americas was up +62 percent cFX compared to Q1 2021, driven by all channels.

The DTC channel of Stone Island recorded a +119 percent cFX growth, contributing 24 percent of the quarterly revenues, also thanks to the aforementioned conversion of the Korean market. Excluding the impact of this conversion, the DTC channel recorded a double-digit organic growth.

The wholesale channel grew 16 percent cFX representing 76 percent of total revenues thanks to the strength of the Brand and the appreciation of the Spring / Summer 2022 collections in all markets, notwithstanding the Korean conversions. As of March 31, 2022, the network of mono-brand Stone Island stores was composed by 54 retail stores and 35 mono-brand wholesale stores. The change compared to December 31, 2021 refers to the conversion from wholesale mono-brand (SIS) to mono-brand retail (DOS) of the already mentioned 23 Korean stores and one new opening.

Photo courtesy Moncler