Moncler Group Shares Climb Following Strong 2023 Performance
Shares rose nearly 5 percent after posting strong 2023 sales and profits, and beating analysts' expectations.
— Moncler Group shares climbed 5.2 percent to 66.78 euros in mid-morning trading on Thursday following the release of strong results for fiscal 2023, and a promising start to 2024. They closed up 4.98 percent at 66.66 euros and analysts flagged the solid performance issuing positive reports.
Citi's Thomas Chauvet described the brand as “still at the top of the mountain,” adding that Moncler was “a clear, industryleading winter clothing brand.” He added that Moncler could also be one of the very few brands delivering double digit growth in the first half of 2024.
Chauvet said sales and operating profit beat consensus expectations, with a “stellar” retail performance in the last quarter, which was up 20 percent versus a consensus of 14 percent.
He estimated that “the recent conversion of Temasek and Rivetti's family stake in Double R holding allows them to exit, while potentially fuelling speculation on future shareholding structure.” He issued a Buy recommendation on the shares.
As reported, Carlo Rivetti, chairman of Stone Island, and the Singaporebased investment company Temasek are becoming direct investors in the group. Each will have a stake of around 4 percent.
Remo Ruffini, chairman and chief executive officer of Moncler, will hold a 16 percent stake in the group.
As reported, in the 12 months ended Dec. 31, group sales, including also the Stone Island brand, rose 15 percent to 2.98 billion euros, compared with 2.6 billion euros in 2022. At constant exchange, revenues rose 17 percent.
In the fourth quarter, group revenues were up 16 percent at constant exchange rate to 1.17 billion euros compared with the same period of 2022. Net profit amounted to 611.9 million euros compared with 606.7 million euros in 2022, including an extraordinary tax benefit of 92.3 million euros for a tax value realignment for Stone Island.
Operating profit rose to 893.8 million euros compared with 774.5 million euros in the previous year, with an EBIT margin of 30 percent.
“Stronger for Longer,” was Jefferies' comment on Moncler. “The impression that brand heat is allowing the group to transcend a more circumspect consumer is reinforced, especially in Asia.”
Jefferies equity analyst James Grzinic underscored that Moncler's reference to “a very solid start to the year…certainly strikes a more upbeat tone that we expect to emerge elsewhere in the industry.”
Grzinic cited Stone Island CEO Robert Triefus‘ plans for the brand, which include the launch of “major campaigns” in
2024, “with the focus at first on driving densities (and further reducing wholesale exposure). This is unlikely to move the profit needle for the group this year, but should do so in the longer run.”
Luca Solca at Bernstein issued an Outeperform recommendation on the shares, while noting that Moncler had a “robust FY23, meeting both our and market expectations.”
He said that Moncler's sales per square meter have improved, and surpassed their 2019 peak, while the brand acknowledged improvements in all retail KPIs for Stone Island, “aligning with their long-term strategic focus.”