Asia lifts Moncler's quarterly revenue as new CEO looks to expand business to all seasons
Moncler’s Financial Performance and Strategic Direction
By Elisa Anzolin
Quarterly Revenue Growth Driven by Asia
MILAN, July 22 (Reuters) - Revenues at Italian luxury outerwear group Moncler rose 5% at constant exchange rates in the second quarter, with rising Asian sales at its key eponymous brand countering weakness in Europe as tourist spending slowed down.
Moncler's results added to tentative signs of recovery in the luxury sector, though the second quarter is a relatively minor contributor to annual sales for the maker of winter puffer jackets, which is trying to evolve into an all-year-round brand.
Luxury Sector Recovery Signals
Last week Cartier-owner Richemont posted better-than-expected quarterly revenues, while Burberry reported a 5% rise in comparable store sales.
Moncler’s Regional Performance
Group revenue at Moncler totalled €409.3 million ($467 million) in the April-June period, slightly ahead of an analyst consensus of €405.8 million provided by the company.
Asia and Americas Lead Growth
Revenue at the Moncler brand, which accounts for the bulk of group sales, rose 12% in Asia, with China and South Korea leading growth in the region. In the Americas, where the brand is still building its presence, sales increased by 4%.
Operating Profit in the First Half
In the first half of the year, operating profit rose to €245.4 million from €224.8 million a year earlier, Moncler said.
Leadership and Strategic Priorities
New CEO Rongone Sets Out Priorities
NEW CEO RONGONE SETS OUT PRIORITIES
During the conference call, new CEO Leo Rongone, a former Bottega Veneta executive, said Moncler's priorities included strengthening the brand in regions with significant growth potential and renewing efforts to turn into an all-season brand.
Innovation and Brand Evolution
Rongone said that innovation in materials would play a key role in Moncler's drive to broaden its reach beyond its core outerwear products, which are linked to the brand's original Alpine heritage.
Moncler’s Heritage and Growth
Founded in 1952 in a mountain village near Grenoble in France, Moncler started out by manufacturing mountain equipment. It turned into a global luxury brand under the leadership of Italian entrepreneur Remo Ruffini who acquired Moncler in 2003.
Additional Information
($1 = 0.8764 euros)
(Reporting by Elisa Anzolin, editing by Alvise Armellini/Keith Weir/Valentina Za)
