Get Premium Data for Cyber Monday: Up to 55% Off InvestingProCLAIM SALE

Moncler third-quarter sales miss estimates, weighing on shares in fashion house

Published 30/10/2024, 11:30 pm
© Reuters
MONC
-
MONC
-

Investing.com -- Moncler (BIT:MONC) posted lower-than-anticipated sales in the third quarter, as the luxury house grappled with weak demand at its eponymous brand and sluggish consumer spending.

Sales at the firm known for its high-end puffy jackets came in at 635.5 million euros during the quarter, below company-compiled estimates of 645 million euros.

Moncler said it is facing "more difficult macroeconomic conditions" that have weighed on consumer confidence, while online demand has been weak across all regions.

Speaking with analysts, executives at the company noted sales in the key Chinese market have remained positive, but was impacted by softening travel expenditures in Europe and Japan. Spending in Japan and South Korea were also negative, with Moncler flagging that it is particularly exposed to these two regions.

Revenues in the direct-to-consumer channel, which includes stores and online sales, were flat during the quarter, reflecting murky economic conditions "affecting consumer confidence," Moncler said.

Stone Island, Moncler's men's apparel brand, reported a 4% drop in revenues at constant currencies, compared to consensus estimates for a 3.6% decrease. The decline was linked to weaker wholesale sales.

"Our industry is facing a period of continuous volatility, characterized by a more difficult global macroeconomic context," said Remo Ruffini, Chairman and CEO of Moncler.

Ruffini added that the group is planning more initiatives for both Moncler and Stone Island as it attempts to navigate "these challenging times."

Milan-listed shares in Moncler were lower in early afternoon trading on Wednesday.

In a note to clients, analysts at JPMorgan (NYSE:JPM) said the results "aligned with a generally soft" reporting period for the luxury sector, which has been dented in large part by sluggish spending in China.

(Sam Boughedda contributed reporting.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.