The wider fashion sector may have faced its challenges last year but Moncler had a good 12 months with its group revenues rising in double digits to get close to €3 billion.
Both of its brands accelerated in Q4 too, a quarter in which many labels reported slowing sales, although there were a few negative figures (very few) in the report.
Consolidated revenues hit €2.984 billion, a rise of 17% currency-neutral or 15% on a reported basis.
Annual revenues for the Moncler band rose 19% currency-neutral and 17% reported, with solid double-digit growth in the fourth quarter. This was driven by the strength of the label’s direct-to-consumer (DTC) channel that accelerated in Q4.
Growth improved in all regions compared to the previous quarter and full-year comparable store sales grew 19%.
Meanwhile, the more recently acquired Stone Island brand didn’t leap ahead quite so fast but will still in positive territory. Revenues rose 4% currency-neutral and 2% reported to reach €411.1 million. And in the fourth quarter they were up 7% year on year, also boosted by a strong performance in DTC, which was up 16% on a reported basis.
Profit-wise, it translated into group EBIT up from €774.5 million to €893.8 million. And the EBT margin edged up to 30% from 29.8%. Net profit rose from €606.7 million in 2022 (including an extraordinary tax benefit of €92.3 million) to €611.9 million this time.
Digging deeper into the details, in Q4 group revenues rose on a 16% reported basis to reach €1.178 billion. The Moncler label accounted for €1.077 billion of that and Stone Island for €101 million.
Regional strength
Regionally last year, Moncler brand revenues in Asia jumped 30% to €1.291 billion and 28% in Q4, mainly thanks to strong growth in mainland China where Covid had hurt the performance a year earlier.
Japan, Korea and the rest of the region also turned in a solid performance with double-digit Q4 growth.
EMEA, which has been a difficult region for some in the luxury sector, saw 2023 revenues rising 14% to €910.5 million and they were up 7% in Q4, despite a difficult comparison as Q4 2022 had been very good.
Annual revenues in the Americas dipped 1% to €371.3 million, although they rose 3% in Q4 with a positive DTC business countering a wholesale drop. The performance was affected by the conversions of Nordstrom and part of Saks from wholesale to DTC.
For the Stone Island brand, EMEA continued as the most important region with revenues up 3% at €287.5 million. Asia grew 16% however, to reach €89.4 million, and in Q4 the region grew by 22%, boosted by Japan and the Chinese mainland.
The Americas fell 17% for the year and 14% in Q4 as performance continued to be impacted by “challenging trends mostly among department stores, as well as by the ongoing efforts in upgrading the quality of this channel”.
Despite the few negatives in the result report, Chairman and CEO Remo Ruffini was justifiably upbeat and said: “2023 marked the 10-year anniversary of our listing on the Milan stock exchange. I am very proud today to celebrate this significant milestone with a record set of results. These financial results are more than just numbers: they are a testament to a decade of thinking beyond conventions.”
And he clearly expects the innovation and inspiration to continue, saying that for 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.”
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