MILAN — Italian high-end sportswear maker Moncler SpA on Wednesday said net profits in the first half of the year more than doubled on the back of strong revenue growth in all markets except Italy and strong performance in stores open at least 52 weeks.
In a statement released after the close of trading here, where the company is listed, Moncler said that net profits for the six months ended June 30 reached 18.1 million euros, or $24.8 million, compared to 8.3 million euros, or $10.9 million, in the year-ago period.
Total revenues increased 19 percent in the period, reaching 218.3 million euros, or $299.1 million, while like-for-like sales increased 10 percent, driven by strong performance in North America and Asia.
In the second quarter, revenues jumped 27 percent on the year-earlier period, reaching 72.9 million euros, or $99.9 million, while the net loss narrowed to 5.4 million euros, or $7.4 million, from 8 million euros, or $10.5 million — a loss linked to the seasonality of the business.
The three months to end June marked “another very good quarter for Moncler,” chairman and chief executive officer Remo Ruffini said on a conference call, boosted by the 10 percent comparable-sales gains as well as the rollout of new stores. In the first half, Moncler opened seven new monobrand retail locations, bringing the total to 114 worldwide.
Ruffini pointed to double-digit sales gains in Japan in the second quarter, along with “solid results” in Hong Kong and the U.S. Moncler also did well in Europe, with the Italian market making a recovery in the second quarter, “in line with our expectations,” he said.
In the three months to end June, sales in Italy increased 14 percent on the year-earlier period, to 14.9 million euros, or $20.4 million. Italy remained the group’s largest single market, representing 21 percent of total revenues, although this was a bit less than its weight in the second quarter of 2013.
In the first half, sales in Italy expanded by just 1 percent, to 47.5 million euros, or $65.1 million.
Asia and Rest of the World put in the strongest sales growth in the first half, with revenues expanding 38 percent on the year-earlier period, to 66.6 million euros, or $91.2 million. The Americas followed, with sales up 28 percent, to 21.6 million euros, or $29.6 million, while the Europe, Middle East and Africa (excluding Italy) group revenues grew 16 percent, to 82.6 million euros, or $113.2 million.
In terms of channels, both wholesale and retail put in a strong performance in the first half, with the former registering 9 percent growth, to 96.4 million euros, or $132.1 million, and the latter up 28 percent, to 121.9 million euros, or $167 million. Retail sales also benefited from the company’s store-opening campaign, which will continue into the second half.
On the conference call, chief corporate officer Luciano Santel said Moncler will open another 18 stores by December, with an additional 10 locations already “secured” for 2015.
Santel said that the group’s most important store openings in the second quarter were travel-retail locations in airports in Hong Kong, Milan (Malpensa) and Rome (Fiumicino), as well as a new store in Moscow.
Pointing again to the group’s financial performance, Santel pointed out how Moncler’s gross margin — at 155 million euros, or $207.7 million — reached 71 percent of sales in the first six months of the year, up from 70 percent in 2013. The gross margin improved mostly as a result of “channel mix,” which led to higher retail sales. However, Santel added that the flip side to the retail expansion campaign is higher expenses.
The company, meanwhile, is gearing up for a new advertising push, which will include a campaign developed with the help of Annie Leibovitz, to start in November and which will also air on digital platforms. Click Here for the WWD Global Stock Tracker >>
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)