Moncler Group Sales Exceed Expectations, Shares Rise

by Warren Seah

Shares in Moncler Group, the Italian luxury brand famed for its high-end puffer jackets, saw a boost in early trading on Thursday. The company reported sales and earnings for the first half of the year that slightly surpassed expectations, offering some respite to a luxury sector grappling with weakened demand.

At 0729 GMT, Moncler Group shares surged 4.1% to EUR64.24.

In a statement released on Wednesday, Moncler revealed that sales in the first half rose by 24% compared to the previous year, amounting to a total of 1.14 billion euros ($1.26 billion). The company’s earnings before interest and taxes (EBIT) also experienced growth, reaching EUR217.8 million, up from EUR180.2 million. Moncler explained that although there was a decline in the operating margin due to the timing of marketing expenditures, the overall financial performance exceeded forecasts.

Analysts who participated in polls compiled by FactSet reported that both sales and EBIT came in slightly higher than anticipated.

While this period is less critical for Moncler, whose main brand generates the majority of its sales during winter, Citi analysts Thomas Chauvet and Lorenzo Bracco noted in a research note that the better-than-expected results are still significant. These results are particularly encouraging in light of concerns surrounding declining momentum and a potential normalization in the luxury market during the second half of the year. Earlier this week, French powerhouse LVMH signaled a slowdown in US demand after a period of rapid growth following the pandemic, leading to a decline in luxury stock prices on Wednesday.

Luca Solca from Bernstein commented in a note that Moncler’s performance demonstrates strong momentum overall. However, he also mentioned that the Stone Island brand within the Moncler Group is currently trailing behind the rest of the business due to the recent appointment of a new chief executive.

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