Moncler Sales Near 1.2 Billion Euros
Full-year profits rose 27 percent and the firm sees more growth ahead.
MILAN — Moncler SpA continued to drive sales well over its $1 billion benchmark in 2017, as full-year net profits rose 27 percent and revenues were driven by strong performance in all markets and throughout all channels.
Earnings in the 12 months ended Dec. 31 reached 249.7 million euros compared with 196 million euros in the previous year. The company proposed a dividend of 0.28 euros per share up from 0.18 euros per share.
Revenues were up 15 percent to 1.19 billion euros compared with 1.04 billion euros in 2016.
“I believe that a double-digit growth in all key financial indicators and a net cash generation of approximately 200 million euros confirm, once again, Moncler’s strength and the validity of our strategy. That strategy rests on three simple pillars: uniqueness, selectivity and control, which have underpinned the company’s solid and vigorous growth over the years,” said Remo Ruffini, chairman and chief executive officer of Moncler in a press release.
Moncler has been operating debt-free since 2016. When Ruffini took over in 2003, the company only had sales of a few tens of millions, mainly in Italy and through its wholesale channel.
“Moncler’s driving force also lies in its ability to renew itself constantly by turning the challenges into opportunities. Consumers are changing radically and our sector is transforming as fast as ever. This is why, in Moncler, we have decided to start a new exciting and challenging chapter for our business, which I strongly believe, will drive us to new heights with greater determination, still keeping our unique heritage and traditions alive, while having a clear vision of the future that lies ahead,” Ruffini continued.
Moncler set the brand’s refresh button during Milan Fashion Week with a mega installation at Moncler’s Palazzo delle Scintille, introducing its “Genius” series of collaborations with a slew of different designers — with pieces trickling out each month. Moncler recently ended its seasonal partnerships with Thom Browne and Giambattista Valli on its Gamme Bleu and Gamme Rouge runway lines.
Smaller collections with more frequent drops also fits in with the fashion world’s latest strategy to try to excite consumers beyond the main seasons twice a year. Picking up from streetwear brands like Supreme and Kith, luxury labels from Givenchy to Kiton are adopting the concept.
Adjusted earnings before interest, taxes, depreciation and amortization, before non- cash costs related to stockbased compensation, rose 16 percent to 411.6 million euros, or $506 million, up from 355.1 million euros, or $390.6 million in 2016, resulting in a margin of 34.5 percent.
Operating profit increased 15 percent to 340.9 million euros, or $419 million.
Revenues in Asia and the Rest of the World were up 18 percent to 495.5 million euros, or $609 million, accounting for 41.5 percent of the total. Japan had double-digit growth, and China and South Korea also delivered very good results. Asia performance was due to its reinforced presence in some Asian cities and was helped by strong tourism in Pacific Rim locations such as the island of Guam, as well as Auckland, Bangkok, Macau and Taipei, Moncler said.
The Americas gained 12 percent to 196.5 million euros, or $241.5 million, representing 16.5 percent of total helped by solid growth of existing retail stores and opening of new wholesale shops-in-shops.
The Europe, Middle East and Africa region gained 16 percent to 352.4 million euros, or $433.1 million with double-digit growth in both the retail and the wholesale channels and in the main markets. The brand recorded “very good” performances in France, the United Kingdom and in Germany.
In Italy, revenues rose 4 percent, benefiting in the last quarter of the year by the reopening of the flagship in Milan on the Via Montenapoleone shopping promenade.
Overall, revenues from the retail distribution channel rose 17 percent to 892.4 million euros or $1.1 billion, as the company raised its number of retail monobrand stores around the world to
201 from 190 in 2016.
The wholesale channel posted a 9 percent increase to $301.3 million, or $370.4 million, supported by healthy performance in the U.K. and North America.
As of Dec. 31, Moncler’s net financial position was positive, standing at 305 million euros, or $374.8 million compared to 105.8 million euros, or $116.4 million in 2016.
The market will look for pointers Tuesday, during the group’s 2018 Capital Markets Day, where the management team will meet to elaborate further on its 2017 financial results and provide an update on recent strategic developments.