Moncler H1 turnover and profit decline
Jul 28, 2020
In the first half Moncler revenues declined 29 percent to 403.3 million euros (473 million dollars). The company said in a statement that first half results were severely impacted by the measures adopted by the governments to contain coronavirus pandemic. While Italy recorded a 39 percent decline, EMEA revenues were down by 23 percent. The company added that Asia and RoW revenues declined by 27 percent with Japan and HK SAR underperforming in the second quarter. Mainland China and Korea, however, witnessed good sales growth. The company’s revenues in the Americas were down 41 percent.
“I believe that the changes required by the current situation should be radical and swift. Therefore, I feel that the internalisation of our online business as well as the creation of new structure to support an increasingly growing digital culture is a strategic and necessary decision. Today, for the first time, we are announcing a negative result in the first half. It is difficult to know how the second half of the year would evolve. What we are facing will continue to have a significant impact for several months on, at least in some parts of the world,” said Remo Ruffini, Chairman and CEO of Moncler.
Moncler says retail and wholesale channels hit by Covid-19 pandemic
The company further said that Covid-19 pandemic affected the performance of both the distribution channels. Retail declined 32 percent in the first half and 57 percent in the second quarter with more than half the store network remaining shut for around two months. Comp-store-sales were down 38 percent, while online outperformed with double-digit growth. Wholesale revenues declined by 21 percent.
The company reported 35.5 million euros of operating loss, down 8.8 percent on sales. Net loss stood at 31.6 million euros with a margin on sales of negative 7.8 percent.
Moncler’s retail network consisted of 213 mono-brand stores at June 30, 2020. The company expects to open 10 new stores in 2020. Wholesale mono-brand stores counted 63 locations. The company opened one SiS, while two were converted to retail.
Picture:Moncler media centre