Moncler, the renowned Italian luxury brand, is set to unveil impressive quarterly sales, displaying its brand’s resilience even in the face of warmer weather and shifting market conditions. While the pace of growth may moderate from the first half, Moncler’s strength remains evident.
In a year marked as the hottest since 1940, questions arise about the impact on a brand synonymous with its iconic puffy duvet coats. However, Moncler’s successful diversification, including the acquisition of the Stone Island streetwear brand, positions it well for continued growth.
Moncler’s quarterly results, scheduled for release this Thursday, come on the heels of concerns about the luxury industry following reports of a slowdown at the French luxury conglomerate LVMH. The recent report of a larger-than-expected drop in third-quarter sales by the French luxury group Kering has further fueled these concerns.
Projections suggest that Moncler’s sales in the third quarter are expected to rise by approximately 8% at constant exchange rates, reaching 670 million euros ($711 million), according to the company’s consensus. Notably, revenues surged by an impressive 24% at constant exchange rates in the first half of the year.
The driving force behind this growth is anticipated to be the Asia-Pacific region, while sales in the Americas may continue to weaken due to the transition of some U.S. stores from wholesale to retail, as pointed out by analysts at Barclays.
UBS analysts noted, «The exit rate for the third quarter may have been influenced by warmer weather. Therefore, October’s performance will be more telling for underlying trends,» underscoring the brand’s continued momentum.
Moncler traditionally focuses on coats and winter products, with retail sales concentrated in the first and fourth quarters. Flavio Cereda, co-investment manager for luxury brands at GAM, emphasized that while Moncler has reduced its reliance on seasonality, its core identity as a company founded on Alpine mountain goods remains centered on outerwear.
Moncler proactively prepares for the challenges posed by extreme climate events and unpredictable weather patterns. During a July conference call, Moncler Business Strategy Chief Roberto Eggs highlighted the brand’s commitment to offering light and warm products for both spring/summer and autumn/winter collections. He mentioned, «We are also working on multilayering, enhancing the functionality of our outerwear.» This proactive approach positions Moncler to adapt and thrive in an ever-changing climate landscape.
