Moncler sales and profit up but warns of drop in Chinese shopping

Moncler S.p.A. said in a statement that in the 12 months ended December 31, 2019, the company’s net profit increased 9 percent to 361.5 million euros (394.4 million dollars), while revenues rose 15 percent to 1.62 billion euros (1.77 billion dollars). However, the company added that coronavirus outbreak in China is impacting footfalls across shopping malls where Moncler is present and Chinese tourism around the world.

Moncler posts sales growth across core markets

The company’s sales in the fourth quarter were up 16 percent with like-for-like sales growth of 7 percent. Adjusted earnings before interest, taxes, depreciation and amortization increased 15 percent to 574.8 million euros (627 million dollars), with a 35.3 percent margin and operating profit rose 15 percent to 475.4 million euros. In 2019, retail sales grew 16 percent to 1.25 billion euros (1.36 billion dollars), while the wholesale sales increased 11 percent to 370.7 million euros (404.4 million dollars).

The company added that sales in Italy grew 10 percent to 185 million euros (201.8 million dollars), accounting for 11.4 percent of the total with fourth quarter revenues rising 21 percent, driven by the retail channel. Sales in Europe excluding Italy increased 14 percent to 463.5 million euros (505.6 million dollars), representing 28.5 percent of the total driven by growth in UK, Germany and France.

Sales in Asia and the Rest of the World rose 16 percent to 715.2 million euros, (780 million dollars) accounting for 43.9 percent of the total driven by the positive fourth quarter performance in Mainland China and Korea, while Hong Kong protests impacted the overall sales in Asia.

Revenues in the Americas rose 16 percent to 264 million euros (288 million dollars), accounting for 16.2 percent of the total.

At December 31, 2019, Moncler operated 209 directly operated stores, an increase of 16 units and 64 wholesale stores, an increase of 9 units compared to December 31, 2018. Moncler plans to open 15 new stores in 2020 and there will be 15 relocations.

Picture:Moncler media centre