Moncler posts 15 percent revenue decline in Q3
23 Oct 2020
For the first nine months of 2020, Moncler said that the company recorded revenues of 765.1 million euros, a decrease of 23 percent at current exchange and of 22 percent at constant exchange rates impacted by the Covid-19 pandemic, whose effects continued also in the third quarter of this year, although with lesser effects. In the third quarter, Moncler registered revenues of 361,8 million euros, a 15 percent decrease at current exchange and 14 percent at constant exchange rates.
Commenting on the company’s performance, Remo Ruffini, Moncler’s Chairman and CEO, said in a statement: “We ended the third quarter with better results than we expected. Not only is the Chinese market seeing high and constantly improving growth rates, but other markets and all distribution channels are also showing continuous progress in their performance, although in many cases they are still negative. The signs we are seeing in October are encouraging, but we know we have challenging weeks ahead of us, made even more uncertain by the current global economic and health situation.”
Moncler’s performance across core geographies
In the first nine months, the company’s revenues in Italy decreased by 34 percent in the first nine months and 29 percent in the third quarter compared to the same period last year influenced by a decline in the number of travellers, whose spending is particularly important during summer months. EMEA recorded a decline of 21 percent at constant exchange rates in the first nine months of the year and 18 percent in the third quarter also affected by the lack of travellers, particularly in the retail channel. In the third quarter, the company said, Germany, Russia and the Middle East outperformed the rest of the region, while France remained weak.
Revenues in Asia and Rest of World marked a decline of 18 percent in the first nine months with a significant improvement in the third quarter, down only 4 percent driven by the performance of Mainland China and Korea that registered double-digit growth rates in the third quarter and to the significant growth in local demand. Contrasting this has been the performances of Hong Kong SAR and Japan.
In the Americas, revenues decreased by 28 percent at constant exchange rates in the first nine months and 13 percent in the third quarter) with a significant improvement since August in both distribution channels, particularly in the retail network.
Moncler retail channel posts 18 percent drop in Q3
The company said that the retail distribution channel reported revenues of 502.7 million euros, a decrease of 27 percent at current and constant exchange rates. In the third quarter, retail revenues registered a decline of 18 percent at constant exchange rates and 20 percent at current exchange rates), with a constant and progressive improvement compared to first half results, though still influenced by the lack of traffic in the store network. The online channel continued to register positive double-digit growth rates. The wholesale channel recorded revenues of 262.4 million euros in the first nine months, a decrease of 14 percent at current exchange and 13 percent at constant exchange rates. In the third quarter, wholesale revenues decreased by 6 percent at constant exchange and 7 percent at current exchange rates.
As of September 30, 2020, Moncler’s mono-brand store network consisted of 217 directly operated stores (DOS), an increase of eight units compared to December 31, 2019 and 63 wholesale shop-in-shops (SiS), a decrease of one unit compared to December 31, 2019. During the third quarter of 2020, Moncler opened four retail mono-brand stores: one store in Japan, one resort location on Capri island (Italy) and two DOS in EMEA.
Picture:Moncler media gallery