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Sales at Moncler slip 3% in third quarter as demand weakens globally

Published 10/29/2024, 12:50 PM
Updated 10/29/2024, 02:36 PM
© Reuters. FILE PHOTO: Moncler logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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MILAN (Reuters) -Revenues at Italian luxury outerwear maker Moncler fell 3% at constant exchange rates in the third quarter, slightly more than analysts had anticipated, with weakness spread across all its main markets.

Luxury groups have been struggling with tighter consumer spending in recent quarters, especially in China. Kering (EPA:PRTP) last week reported a larger than expected 16% drop in quarterly sales on a comparable basis.

Moncler Chief Corporate and Supply Officer Luciano Santel told analysts that China's Golden Week in early October had gone well and better than last year, but "it is just a week".

Total revenue at Milan-based Moncler, known for its puffer jackets, totalled 635.5 million euros ($686 million) in the July-September period, against analysts' consensus forecast of 645 million euros, according to company-provided data.

Kering's rival LVMH in September invested in Moncler, originally a mountain sports brand born in the French Alps, by buying a 10% stake in Double R, the investment vehicle which owns 15.8% of Moncler.

Santel said the move would have no impact on strategy, with Moncler remaining "completely independent".

"We are very proud [of an investment by] ... the most important luxury group in the world," he said.

Quarterly sales of the group's main Moncler brand were 532 million euros, down 3% at constant currencies yearly, hit by a wholesale reorganisation.

Moncler said a 9% yearly drop in wholesale revenue at constant currencies hit the most important quarter of the year for the channel, reflecting "challenging market trends and efforts to improve the quality of the distribution network."

Sales of the Moncler brand fell 2% year-on-year in Asia Pacific, its biggest market. They dropped 3% in Europe, Middle East and Africa and fell 6% in the Americas.

"Our sector is going through a volatile phase," CEO Remo Ruffini said in a statement. "Complex macroeconomic conditions which are impacting consumer confidence in various markets."

Direct-to-consumer sales of the Moncler brand held steady across the Atlantic while they were negatively affected by tourist flows in Europe.

© Reuters. FILE PHOTO: Moncler logo is seen displayed in this illustration taken, May 3, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The group also owns the smaller Stone Island brand whose sales fell 4% at constant currencies in the period.

($1 = 0.9263 euros)

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