Italy's Moncler sales accelerate further in second quarter
today Jul 24, 2019
Sales growth at Italian luxury outerwear maker Moncler accelerated further in the second quarter, posting an 18% increase at constant exchange rates, as the long-lasting appeal enjoyed by the brand showed no signs of fatigue.
In the first half of the year, revenues rose 13% at constant changes to 570 million euros ($635.15 million), slightly better than consensus of 562 million according to Refinitiv SmartEstimate.
Comparable-store sales grew by 9% in the period, a company statement said.
Moncler, known for its wintry down coats, has tried to jazz up its ranges with special edition jackets from a roster of famous designers, and has stepped away from traditional catwalks shows to host edgier events in its stores.
Last year the puffer jackets brand succeeded in changing its strategy, dubbed “Genius”, in favour of monthly collections designed by different stylists to keep up with younger and more fickle customers.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 16% to 143.6 million euros, just above a 139 million euros forecast, with core profit margins at 25.2%, broadly stable compared to a year ago.
In a statement, chairman and chief executive Remo Ruffini expressed confidence about Moncler’s results in the coming months.
“We have evidence we’re moving in the right direction,” Ruffini told analysts. Chief Operating Officer Robert Eggs said the buoyant sales trend had extended into July.
Other brands trying to revive more sluggish sales are also experimenting with similar models and now making a push in social media marketing, including Italian shoemaker Tod’s and fashion house Prada.
© Thomson Reuters 2020 All rights reserved.