MILAN — On the back of gains in profitability and revenues in the first three months of the year at Moncler SpA, chairman and chief executive officer Remo Ruffini continues to stand by his long-term strategy.
Discussing the quarter, the first as a public company, Ruffini told WWD that he aims “at a sustainable and long-term growth. This has not changed since the IPO [initial public offering]. I continue to work believing that our main shareholders are our consumers and that we have to work to satisfy them.”
Moncler shares have risen 17 percent since the first day of trading on Dec. 16, but Ruffini said “not much has changed. Apart from the euphoria of the moment, I said to myself then that I wanted to return to work in the respect of our shareholders and seriously.”
In the period ended March 31, Moncler reported a 43 percent increase in net profit to 23.5 million euros, or $32.2 million. This compares with 16.4 million euros, or $21.6 million, in the first quarter of 2013, including net losses of 3.3 million euros, or $4.3 million, from discontinued operations and the devaluation of the “other brands” including Marina Yachting, Henry Cotton’s and Coast Weber & Ahaus.
Revenues rose 16 percent to 145.4 million euros, or $199.2 million, compared with 125.6 million euros, or $165.8 million.
“I am very satisfied with these results, which were ahead of our expectations. Exchange rates and macro-political reasons surely weighed on the figures in the period, and last year, too. They are all negative factors, but our strategy is long-term, this is very important,” underscored Ruffini. “I look at our customers and listen to them. We don’t operate with quarterly strategies, and, if you work well, you can see the results.”
Adjusted earnings before interest, taxes, depreciation and amortization, before the 600,000 euros, or $822,000, of noncash costs related to the stock option plans, rose 14.7 percent to 45 million euros, or $61.6 million.
Dollar amounts are converted at average exchange rates for the periods to which they refer.
The brand recorded double-digit growth in all markets. Asia and the Rest of the World was up 31 percent to 45.3 million euros, or $62 million, boosted by its performance in Japan and China, yet dented by the negative trend of the yen in relation to the euro. At constant exchange, sales would have grown 42 percent.
The Americas were up 12 percent to 14.1 million euros, or $19.3 million, and the Europe, Middle East and Africa regions climbed 20 percent to 53.3 million euros, or $73 million. France, Germany, Turkey and the U.K. were singled out as particularly strong markets.
Ruffini touted the group’s “diversification” and market balance that helps weather difficulties. “We always take into account a slowdown,” he said. The entrepreneur remarked on how Asia and the U.S.
“performed very, very well” — the latter also over the past six to eight months. He noted that business in China was also “very good,” and underscored Hong Kong’s “very strong energy.”
Italy inched down 4 percent to 32.6 million euros, or $44.6 million, largely due to a different timing effect in deliveries between the first and second quarters and also by an ongoing selective reduction of wholesale doors. Asked if the scaling back is complete, Ruffini said the company still “needs to do a few doors in Italy. The wholesale network here has deteriorated because of the strong crisis.”The group’s retail channel rose 23 percent, accounting for 56.3 percent of total revenues, driven by the expansion of its own stores and like-for-like gains.
The wholesale channel rose 7 percent and accounted for 43.7 percent of total sales, despite the planned reduction of wholesale doors and the conversion from shops-in-shop to concessions of five units over the past 12 months.
At the end of March, Moncler had 138 stores, of which 111 are directly operated.
Ruffini said the stores totaled 140 boutiques at the end of April with the opening of the brand’s first Russian store in Moscow and a new directly operated store at Hong Kong Airport.
In the first quarter, capital expenditure totaled 9 million euros, or $12.3 million, compared with 6.4 million euros, or $8.4 million, in the first quarter last year, mainly related to the development of the group’s network of stores, a new showroom location in Milan and investments in IT infrastructure.
In the first quarter, advertising expenses totaled 10.5 million euros, or $14.4 million, compared with 9.4 million euros, or $12.4 million, last year.
Ruffini was confident about new company projects. Asked about the development of a knitwear division he had recently referred to, he said he had set the project in motion. “It’s in place, we have looked for the right people, and we are pleased with it. We will be operative with the winter collection,” he said. True to his inclinations, he was cautious. “I want to be sure, I don’t want to rush after immediate sales, I want to create a culture and not look at the numbers, but create a special and unique product—just like the down jacket.”
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews