MILAN — Ten years after its public listing in Milan, Moncler continues to grow.
“We celebrate the anniversary with an excellent set of results, and revenues more than five times what they were in 2013,” chairman and chief executive officer Remo Ruffini said proudly during a conference call with analysts on Wednesday at the end of trading.
In the 12 months ended Dec. 31, group sales, including also the Stone Island brand, rose 15 percent to 2.98 billion euros, compared with 2.6 billion euros in 2022. At constant exchange, revenues rose 17 percent. In the fourth quarter, group revenues were up 16 percent at constant exchange rate to 1.17 billion euros compared with the same period of 2022.
He underscored that for the first time, the group financial position amounted to more than 1 billion euros (and this was after a dividend payment of 303.4 million euros).
In fact, during the almost two-hour call, analysts asked about potential additional acquisitions, given the amount of liquidity, but Ruffini said “we have in our pipeline to continue to work on Moncler and Stone Island. We have a lot of ideas and dreams to achieve and we are very confident to continue to work with the two brands.”
In 2023, net profit amounted to 611.9 million euros compared with 606.7 million euros in 2022. The gain included an extraordinary tax benefit of 92.3 million euros for a tax value realignment for Stone Island.
Operating profit rose to 893.8 million euros compared with 774.5 million euros in the previous year, with an EBIT margin of 30 percent.
“These financial results are more than just numbers: they are a testament to a decade of thinking beyond conventions, a relentless pursuit of product excellence, a consistent customer-centric focus and an unwavering brand-first strategy that continues to guide our Group and inspire our people,” Ruffini continued.
“As we look ahead, the journey continues. At Moncler, we are committed to strengthening the three dimensions of our brand — Collection, Genius and Grenoble — ensuring continued resonance with existing communities while reaching new ones. Meanwhile, Stone Island is embarking on an exciting new chapter, poised to unlock its full potential through a highly distinctive brand positioning and engagement strategy which we have recently launched.”
Ruffini admitted that the “operating environment remains complex and unpredictable. We will continue to navigate through these uncertainties remaining vigilant while leveraging on our agility and reactivity. At the same time, we will continue to invest in our organization, in our brands and in the exceptional talent within our group, with a long-term oriented mindset and always pushing for higher peaks.”
By brand, Moncler sales climbed 17 percent to 2.57 billion euros in 2023 compared with 2.2 billion euros in 2022. In the fourth quarter, sales grew 17 percent at constant exchange rates, driven by the strength of the direct-to-consumer channel, which was up 20 percent, accelerating sequentially from the third quarter. Growth improved in all regions compared to the previous quarter.
Like-for-like sales were up 19 percent in the year.
Stone Island revenues were up 2 percent to 411.1 million euros, compared with 401.1 million euros in 2022. At constant exchange rates, sales rose 4 percent in the year. In the fourth quarter, sales gained 7 percent at constant exchange rates, led by strong double-digit growth in the direct-to-consumer channel, which rose 16 percent.
Moncler sales in Asia, which includes APAC, Japan and South Korea, amounted to 1.3 billion euros, up 25 percent compared to 2022, representing 50.2 percent of the total. In the fourth quarter, revenues in the region grew by 28 percent at constant exchange. Japan, South Korea and the rest of APAC continued to record a very solid performance, all growing at a double-digit pace in the fourth quarter.
The Europe, Middle East and Africa region recorded revenues of 910.5 million euros, up 13 percent compared to 2022. In the fourth quarter, revenues in the area increased by 7 percent at constant exchange, with an acceleration driven by the DTC channel, with a positive contribution from both tourists and locals. Chinese, Korean and American customers remained the strongest contributors to tourist purchases in the region.
Moncler revenues in the Americas rose 1 percent from 2022 to 371.3 million euros. In the fourth quarter, revenues in the region were up 3 percent at constant exchange with a positive DTC business offsetting the decline in the wholesale channel. The performance of the region in the two channels was influenced by the conversions of Nordstrom and part of Saks from a wholesale to a DTC business model.
In 2023, Moncler’s DTC channel recorded revenues of 2.16 billion euros, up 22 percent on 2022.
The wholesale channel recorded revenues of 409.2 million euros, a decline of 5 percent compared to 2022 due to the conversions of Nordstrom and part of Saks in the U.S. and by the ongoing efforts to upgrade the quality of the distribution network.
As of Dec. 31, there were 269 directly operated Moncler stores, an increase of 18 units compared to the end of December 2022, including the first Grenoble store in Saint Moritz Grenoble. The Moncler brand also operates 57 wholesale shops-in-shop.
Stone Island in the EMEA region, the most important for the brand, registered revenues of 287.5 million euros, up 3 percent compared with 2022. Asia reported a 12 percent gain to 89.4 million euros.
Revenues in the Americas were down 19 percent to 34.1 million euros compared to 2022, impacted by challenging trends mostly among department stores, as well as by the ongoing efforts in upgrading the quality of this channel.
Robert Triefus, CEO of Stone Island, said he expected “higher visibility” for the brand, with increased media communication and global community engagement. In January, for the first time during Milan Men’s Fashion Week, the brand staged a presentation/fashion show event, and Triefus was speaking from Los Angeles where an archival exhibition was opening on Wednesday, taking place during Frieze there. “We are working on raising visibility in the U.S. and improve the understanding of the brand,” in that market, Triefus explained. “I have great confidence in the potential of Stone Island, but with no shortcuts, laying methodically the foundations for growth.”
The wholesale channel for Stone Island was down 5 percent to 238.2 million euros, representing 58 percent of the total, due to the focus on improving the quality of the distribution network.
The DTC channel grew by 16 percent compared to 2022 to 172.8 million euros.
As of Dec. 31, there were 81 directly operated stores, a net increase of nine units compared to the end of December 2022, and 15 wholesale stores, a net decrease of four units.
At the end of December 2023, Stone Island started the process to take full control of the brand distribution in the Chinese market, which will be completed over the first months of 2024 and which will also include the closure of some wholesale mono-brand stores.
Roberto Eggs, chief business strategy and global markets officer, said the retail trend for the group in the first months of 2024 is “very solid, we are very happy with the direct-to-consumer growth in all regions, we have kept momentum.” Responding to analysts, he said the Chinese cluster “was one of the best, growing 50 percent on a two-year stack,” and citing good performance in Japan, Hong Kong and Macao.
The Americas are “a focus for both brands” going forward, Eggs said. “We are underrepresented in the market.”
Eggs said management “is obsessed” with sales density and that for the first time, Moncler’s is reaching 38,000 euros per square meter.
Asked about buying real estate, he said “it’s not in the philosophy of the company, we have very good locations but we don’t need to buy into properties.”
In 2023, capital expenditures totaled 174.1 million euros, compared with 167.1 million euros in 2022. Investments related to the distribution network were equal to 100.7 million euros, of which more than half dedicated to renovation and expansion projects. Investments related to infrastructure amounted to 73.3 million euros, mainly related to IT, production and logistics.
Luciano Santel, group chief corporate and supply officer, said the group is “looking at increasing its knitwear facility in Italy, moving into a much bigger facility” as the category is the second leading one.
Responding to an analyst who asked to clarify Stone Island chairman Carlo Rivetti’s direct investment into Moncler, as reported, Ruffini said it was “a natural evolution of the three-year agreement” and that there was “no change in the governance structure.”
In November, EssilorLuxottica and Moncler inked a licensing agreement for Moncler eyewear, which was previously produced and distributed by Marcolin. The first collections will bow for fall 2024, and Eggs said the goal was to “enhance the identity of the product” and to leverage the “great power” of the eyewear maker’s “huge capability and distribution.”
