Moncler sales beat H1 expectations, but Stone Island sees US weakness

Sales at luxury outdoor apparel group Moncler rose 24% at constant exchange rates in H1 to reach €1.136 billion as Asia bounced back and EMEA proved solid. That was a rise of 24% in the period to the end of June.


Consolidated revenues just beat expectations and operating profit (EBIT) reached €217.8 million, with a 19.2% margin on revenues, also above expectations. 

But net profit for the group was €145.4 million, down from €211.3 million a year earlier. The previous period had included an extraordinary tax benefit of €92.3 million linked to Stone Island so, without that included, net profit would have risen this time.

The Moncler brand saw revenues, rising 29% to €935 million at both current and constant exchange rates with strong double-digit growth continuing in Q2 – in fact, it was up as much as 32% in the latest quarter and the direct to consumer channel rose 45% in Q2. Given that the brand is best known for its winter clothing, that’s a good result for the spring and early summer months.

During the first half, revenues in Asia rose, 37% on a total basis for the brand with EMEA up 29%, but the Americas rose only 9%. 

At constant exchange rates, revenue in the Americas was up an even narrower 3% and actually declined by 5% in the second quarter due to the impact of the conversion of Nordstrom from a wholesale to a hybrid business model. This drove the wholesale channel to negative territory in the region during the quarter but the DTC channel continue to record solid double-digit growth in Q2. Without the Nordstrom issue, growth in the Americas would have been positive in the second quarter. Given that a number of luxury brands have reported sales declines in that region recently, it was a good result overall.

Meanwhile the acquired Stone Island brand saw its revenues, rising a smaller 5% (or 4% at current exchange rates). This business was driven by Asia and EMEA. Revenue in Asia rose 17% and they edged up by 5% in EMEA. However, in the Americas, they were down by a massive 24% on a reported basis and 25% at constant exchange rates. The company said its wholesale performance in the region continued to be impacted by a softer business trend, and a more cautious approach from department stores as a result.

Chairman and CEO Remo Ruffini was upbeat: “For the first time in our history, group revenues exceeded the €1 billion mark in the first half of the year. I am proud of this significant milestone, a testament to the great teamwork, innovative thinking, and customer-centric approach that defines our group. 

“At Moncler, we are driving a new level of engagement with our customers all around the globe, leveraging all the dimensions of the brand. At Stone Island, we have just started the second chapter of the evolution of this unique brand under the leadership of the newly-appointed CEO [Robert Triefus]. While remaining mindful of a still uncertain and complex environment, we will continue to invest in our organisation and in our people to enable our brands to express their full potential.”

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