The Moncler Group’s two brands (the eponymous Maison and Stone Island) posted a decline in the third quarter of 2024. But while Moncler, the group’s driving force, held up well over the first nine months of the year, Stone Island fell back.
Moncler, owner of the eponymous brand andof Stone Island, fell back in the third quarter of 2024, which ended in September.
Over the first nine months of the year, the eponymous luxury down jacket brand continued to show resilience, while its little sister Stone Island fell back slightly.
While the big names in luxury goods such as Kering – and to a lesser extent LVMH – have suffered over the last three months from the slowdown in the sector, the Moncler Group itself posted a 3% decline at constant exchange rates to 635.5 million euros. This was less than analysts’ consensus expectations (645 million euros).
Poor trend in wholesale sales
For the first nine months of the year, sales were still up 6% at constant exchange rates (+3% at current exchange rates), at 1.86 billion euros.
Both brands experienced a slowdown in the third quarter.
Historic flagship Moncler (-3% at constant exchange rates) was “affected by the decline in the wholesale channel (-9%) in its most important quarter of the year, due to difficult market trends and ongoing efforts to improve the quality of the distribution network”. But its Direct-To-Consumer channel , stable year-on-year, also suffered from “more difficult macroeconomic conditions affecting consumer confidence”.
In the third quarter, Stone Island also fell by 4%, with “continued strong double-digit growth in the DTC channel (+28%) almost entirely offsetting the decline in the wholesalechannel (-19%)”.
More difficult macro-economic context
Over the first nine months, growth remained strong for the Moncler brand (+8% at constant exchange rates (+5% at current exchange rates) to 1.57 billion euros. But Stone Island posted a 5% decline (-6% at current exchange rates) to 292.4 million euros.
“Our sector is facing a period of continued volatility, characterized by a more difficult global macroeconomic context, which has had an impact on consumer confidence in several markets,” explained Remo Ruffini, CEO of Moncler S.p.A.
Geographically speaking, unlike most other luxury goods players, Moncler did not post its biggest decline solely in the Asian market, its Number One destination.
Normalization in Japan
On the contrary, the region (which includes APAC, Japan and Korea) fared slightly better, with a year-on-year decline at constant exchange rates of 2% in the third quarter, “due to more difficult macroeconomic conditions affecting consumer confidence, as well as a normalization of tourist flows in Japan”. The Japanese market also marked time for Kering and LVMH, but not for Hermès.
Over the first nine months, sales in the region continued to grow at a good pace (+11% at constant exchange rates) to €750.8 million.
The EMEA region, the Group’s second-largest destination, declined slightly more (-3%) in the third quarter, “mainly due to a decline in the wholesale channel”, while “DTC was” itself “impacted by a deceleration in tourist flows and deteriorating performance in the direct online channel”. Over the first nine months, sales rose by +6% at constant exchange rates to 603.4 million euros.
Strong underperformance in the Americas
The strongest underperformance was seen in the Americas, where sales fell by 6%, “impacted by the decline in the wholesale channel, while trends in the DTC channel remained stable”. Over the first nine months of the year, the region posted only modest growth (+3% ) to 219.1 million euros.
In the face of “persistent uncertainties”, the Group remains combative. “We remain focused on what we do best: building lasting relationships with our customers and, above all, creating energy and emotion around our brands. Our recent event in Shanghai, The City of Genius, is proof of this: a powerful brand experience celebrating creativity and innovation, with an extraordinary echo effect among communities worldwide” explains Remo Ruffini.
He adds that his group is approaching “the latter part of the year with a number of exciting initiatives planned for both Moncler and Stone Island”.
After Alicia Keys, Jay-Z and Pharell Williams, it was recently the turn of design legend and Apple veteran Sir Jony Ive to design a capsule of stackable outerwear, dubbed LovFrom MONCLER.
The opening of new points of sale in Asia and a strengthened online presence are also on the agenda.
“This brand-first, long-term strategy will put us in a good position to weather this difficult period,” says Moncler’s CEO.
Read also > Kering weeps, Hermès laughs
Featured Photo: © Moncler
