Italian fashion brand Moncler bucks luxury slowdown trend

Revenues rose 5% in Q2 — driven by strong growth in Japan and by a positive performance on mainland China

The Milan-based Mnler cogroup, known for its puffer jackets, said its half-year consolidated revenues totalled €1.23bn. 

Italian fashion group Moncler has bucked recent trends in the luxury fashion scene seeing its profits increase by 11% during the first six months of the year driven by its performance in Asia.

The Milan-based group, known for its puffer jackets, said its half-year consolidated revenues totalled €1.23bn — in line with a company-provided consensus.

Revenues at Moncler, the principal brand which accounts for over 80% (€1.04bn) of group sales, rose 5% between April and June — driven by strong growth in Japan, supported mostly by tourists and by a positive performance on the Chinese mainland, the company said.

Half of Moncler's revenue earned in Asia

Over half of the Moncler brand’s revenue, €512m, was generated in Asia alone, with €380m being generated in the European, Middle East, and Africa region.

The group’s other brand, Stone Island, reported a decline in revenues in the second quarter — mainly due to the weak performance of its wholesale channel.

First half of the year operating profit totalled €259m, which was above expectations of €247m.

The company’s chief executive, Remo Ruffini, said the “global macro-economic context is highly volatile and unpredictable”, and industry trends are seeing a “continued normalisation”.

“This requires us to maintain a vigilant mindset, focusing on our operational flexibility and responsiveness,” he said.

Other luxury brands have been struggling

This comes as numerous luxury companies have been struggling in recent months as a result of slowing demand, with China in particular being singled out as a problem area.

Luxury conglomerate LVMH — which owns Louis Vuitton, Dior, as well as Tiffany & Co — saw sales growth slow in the period April to June, as Chinese shoppers reined in spending at home, even as demand in Western markets picked up slightly.

Sales grew to €20.98bn, a 1% rise on an organic basis. That compares to a 3% rise year-on-year during the first three months of the year.

Last week, Hugo Boss revised down its profit forecast for the year — citing weakness in key markets such as China and Britain.

Cartier-owner Richemont also noted there has been a decline in sales in China, falling 27% over the last three months. Despite this, Richemont did post a slight rise in overall sales, with jewellery sales showing resilience, rising 4%.

Britain’s Burberry Group is also experiencing difficulties recently, warning that it may report a loss during the first six months of this year.

• Additional reporting by Reuters