MILAN — Moncler SpA, the upmarket outer wear company, saw its profits and revenues surge in the first three months of the year, driven by its retail sales and its performance in the Asian and the American markets.
Net income in the first quarter of the year, rocketed 69 percent to 39.6 million euros, or $43.15 million, beating analysts’ expectations.
Adjusted earnings before interest, taxes, depreciation and amortization rose to 65.7 million euros, or $71.6 million, versus 45 million euros, or $61.6 million, reported in the first quarter of last year.
Consolidated revenues rose 38 percent to 201 million euros, or $219 million, as sales generated from the Americas rose 61 percent and Asia and the Rest of the World sales rose 48 percent. The company noted strong performances in Hong Kong, China and Japan.
Dollar amounts are converted at average exchange rates for the periods to which they refer.
“They beat consensus quite considerably,” said analyst Christopher Walker of Nomura following the results.
Another analyst, speaking on the condition of anonymity, said Moncler exceeded analysts’ expectations of about 30 million euros in net income, mostly because market watchers are currently cautious in their luxury market outlook.
“This is a trying moment for the sector, especially in Asia,” the analyst said.
Sales generated from Moncler’s directly operated stores that have been open for at least 12 months rose 25 percent, while wholesale revenues declined 2 percent, reflecting the company’s move to convert 12 South Korean stores, formerly in its wholesale network, into directly operated units.
In the first quarter, Moncler focused on opening other monobrand stores, particularly in Asia.
Between Dec. 31 and March 31, Moncler opened 17 directly operated stores in what it calls its “Asia and the Rest of the World” category.
On the year ahead, the company said sales indicators from this spring are positive.
“We are confident that once again Moncler will be able to show an upward trend in its results in 2015 in terms of both revenues and profits,” chairman and chief executive officer Remo Ruffini said.
Global markets of interest are Asia, as well as the West Coast of North America and the U.K., the company said, noting that refurbishing and expanding its existing stores is a priority, in addition to a healthy expansion plan.
“Quality instead of quantity [of stores] is on the top of our minds,” said Moncler’s senior director of retail business Andrea Tieghi.