Moncler SpA (MONRF) H1 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus News
4 min read

In This Article:

  • Group Revenue: Up 11%, exceeding EUR1 billion in the first half of 2024.

  • Moncler Revenue: EUR1.041 billion, a 15% increase compared to H1 2023.

  • Stone Island Revenue: EUR188.9 million, down 5% compared to 2023.

  • Operating Profit: Exceeded EUR250 million, with an EBIT margin of 21%.

  • Net Income: EUR181 million.

  • Net Cash Position: EUR846 million at the end of June 2024, compared to EUR471 million in June 2023.

  • Gross Margin: 76.7%, higher than the previous year.

  • Direct-to-Consumer (DTC) Revenue: Moncler DTC increased by 19% to EUR875 million; Stone Island DTC grew by 29% to EUR92.6 million.

  • Wholesale Revenue: Moncler wholesale down 5% to EUR165.5 million; Stone Island wholesale down 24% to EUR96.3 million.

  • Same-Store Sales Growth: Moncler comp sales up 14% during H1 2024.

  • Net CapEx: EUR56 million, with a year-end guideline of about 6% of revenues.

  • Free Cash Flow: EUR126 million, compared to a negative EUR34 million last year.

  • Store Openings: Two net openings for Moncler and one for Stone Island.

Release Date: July 24, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Moncler SpA (MONRF) reported a strong 11% increase in group revenues for the first half of 2024, surpassing the EUR1 billion mark.

  • The company achieved a notable operating profit exceeding EUR250 million, with an EBIT margin of 21%, up from 19.2% last year.

  • Net income rose to EUR181 million, and the net cash position improved significantly to EUR846 million compared to EUR471 million in June 2023.

  • Moncler brand's strategic initiatives, such as collaborations with iconic artists and designers, have enhanced brand visibility and engagement.

  • The DTC channel showed robust growth, with a 19% increase in revenues during H1 2024, driven by strong performance across all regions, particularly EMEA.

Negative Points

  • Stone Island's revenues declined by 5% in H1 2024, with a notable 24% decrease in the wholesale channel.

  • The Americas region experienced a 1% decline in Q2, impacted by challenges in the wholesale channel and department stores.

  • Korea and the rest of APAC showed softer trends, affecting overall growth in the Asia region.

  • Online business performance was weaker in Q2 compared to Q1, with volatility and promotional activities affecting conversion rates.

  • The wholesale channel faced ongoing challenges, with a high single-digit decrease expected for the second half of the year.

Q & A Highlights

Q: Can you provide insights on the trends by nationality and their impact on profitability in Q2? A: Roberto Eggs, Executive Director, Group Chief Business Strategy and Global Market Officer, explained that Chinese customers showed double-digit growth, although it slowed compared to Q1. Koreans were softer, Japanese were flat but positive locally, and Europeans and Americans showed single-digit positive growth. The profitability was positively impacted by the DTC channel's growth, despite challenges in department stores.

Recommended Stories