After the closing on October 26, Central European Time, Italian luxury goods group Moncler announced key financial data for the first three quarters of the 2023 fiscal year ending on September 30. In the third quarter, the group’s revenue grew by 7% YoY at fixed exchange rates, reaching 669.7 million euros, meeting analysts’ expectations, with growth in the Asian market compensating for the decline in the American market.
Moncler’s brand revenue in the third quarter recorded stable growth, increasing by 9% at constant exchange rates to 561.2 million euros, recovering from the 32% increase in the second quarter (which was mainly attributed to a lower base of comparison in the same period last year). The third-quarter growth was mainly driven by the DTC channel (including direct sales stores, direct e-commerce, and licensed dealers), which continued to perform strongly. Despite the high base of comparison in the same period last year, DTC channel revenue still increased by 18% YoY at fixed exchange rates in the third quarter, and Moncler’s brand performed positively in DTC channels in all regions.
In the third quarter, Moncler’s brand revenue in the Asian market increased by 22% YoY at fixed exchange rates. Although it was lower than the 55% growth in the second quarter, it still performed the best among all markets.
In the third quarter, Stone Island brand revenue remained flat at 108.5 million euros compared to the same period last year. DTC channel revenue increased by 16% at fixed exchange rates, benefiting from strong performance in the EMEA (Europe, Middle East, and Africa) region. Wholesale channel revenue declined by 6% at fixed exchange rates, primarily due to strict control over wholesale channel sales volume to enhance the quality of the distribution network.
For the first nine months of this year, the group’s revenue increased by 16% YoY to 1.8063 billion euros, with Moncler’s brand revenue increasing by 19% YoY to 1.4963 billion euros (accounting for 82.8% of the total group revenue), and Stone Island brand revenue increasing by 2% YoY to 310.1 million euros.
In Asia (which includes APAC, Japan and Korea), 9M revenues grew by 32% cFX compared with the first nine months of 2022. In Q3, revenues grew by 22% cFX YoY, normalizing from Q2 due to a tougher comparable base in the Chinese mainland, whose performance in Q3 2022 was boosted by the end of several Covid-related lockdowns. Japan and Korea continued to report a very solid performance in the third quarter despite a slight normalization.
In EMEA, revenues grew by 19% cFX in 9M 2023 vs. 9M 2022, with an increase in the third quarter of 6% cFX compared with Q3 2022, sequentially slowing due to a normalization in local consumption and a slower recovery of tourism flows compared to the first part of the year. Chinese, Korean, and American customers remained the strongest contributors to tourist purchases in the region.
Stone Island’s revenue in Asia increased by 14% YoY in the first nine months. In the third quarter, revenue increased by 1%, with outstanding performance in the Japanese market compensating for the weakness in the Korean market.
| Source: Reuters, Official Financial Reports
| Image Credit: Official Financial Reports
| Editor: LeZhi