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Moncler group sales climbed to €818 million in the first quarter, up 16 per cent compared to the year prior, the Italian company said in a statement on Wednesday, with China proving a particularly bright spot – bucking industry trends.
The Moncler brand revenue rose 20 per cent to €705 million, turbocharged by Asia (up 26 per cent), while EMEA grew 15 per cent and Americas 14 per cent. Stone Island revenue dropped 5 per cent to €113 million, dragged down by the wholesale channel.
It comes after a positive fourth quarter in 2023 and largely beats expectations. The group’s 16 per cent increase surpasses the company-provided consensus by 5 per cent, noted Luca Solca, managing director of luxury goods at Bernstein.
“I am particularly satisfied with the very strong double-digit growth achieved in the core DTC channel by both our brands,” Remo Ruffini, Moncler S.p.A. chairman and CEO, said in a statement. “But I am even prouder of the distinctive brand experiences we created over the past few months, building stronger and stronger connections with our communities,” the executive added, citing the blockbuster show and event in St Moritz and Stone Island’s new manifesto “The Compass Inside” including its first show during Milan Fashion Week and an SS24 campaign featuring the likes of Jason Statham.
“While I am very pleased with the results achieved during the first quarter and very confident in the strong potential of our brands, I am also conscious of the still volatile macroeconomic environment and of the normalisation trends in our sector, which require us to remain prudent and reactive in light of these ongoing uncertainties,” the CEO added.
The luxury sector as a whole has been facing a sharp slowdown in China. LVMH reported 3 per cent growth in the first quarter (including a 6 per cent decline in Asia), and Kering sales were down 10 per cent, with group retail sales in Asia Pacific down 19 per cent. Prada also proved an exception: sales in the region were up 16 per cent in the first quarter.
Moncler’s strong performance in Q1 in Asia was driven by “very solid growth in the Chinese mainland notwithstanding a very tough comparable base and the increase in Chinese consumption abroad”. The brand plans to open six stores in China in 2024 out of a total of 15 store openings. Japan and Korea were also strong performers, the company noted. In the US, business is “good but still volatile”, Moncler executive director and chief corporate and supply officer of Moncler Group Luciano Santel told analysts.
Santel described the current retail growth globally in April (after the Q1 surge) as “good, positive, but a normalised trend”.
Santel notably stressed the very high potential in China for Moncler Grenoble (the brand’s technical line rooted in the mountain heritage of the brand, which now goes from high performance to après-ski and various outdoor experiences all year long). The executive expects the line’s contribution to total revenue is expected to grow from high single digits to double digits.
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