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.)