Moncler Group is another winner of the fiscal 2023 earnings season, beating analyst expectations with its strong performance in Asia.
Sales at the Italian luxury group rose 17 percent at constant exchange rates last year, hitting $3.2 billion (2.98 billion euros), while operating profit reached $969 million (894 million euros). Revenue is now more than five times what it was 10 years ago, when the company first went public on the Milan Stock Exchange, said Moncler CEO Remo Ruffini on an earnings call on Wednesday.
In the first six months of 2023, Moncler Group surpassed 1 billion euro — the first time it had hit this milestone in H1 — propelled by a 39 percent rise in Asia.
The Moncler brand, which drives the majority of the group’s sales, grew 17 percent in Q4 year-over-year. During the holiday quarter, Asia, its largest region by revenue, was up 28 percent YoY, “thanks to a strong growth registered in the Chinese mainland, whose performance in Q4 2022 was affected by Covid restrictions.”
Meanwhile, Stone Island’s sales jumped 7 percent in Q4 YoY, similarly bolstered by the Asia market, which grew 22 percent YoY.
Collaboration strategy shines#
The Moncler brand’s strategy continues to be defined by co-creation. In the quarter ended December 31, 2023, the Moncler Genius project invited Adidas Originals, Palm Angels, and Rick Owens to reimagine Moncler codes, resulting in functional yet fashionable statement pieces primed for the outdoors. The luxury outerwear label also partnered with Daniel Arsham in October, who returned for a third season of their Inter x Moncler official formalwear partnership.
With these high-profile tie-ups, it’s no surprise that Moncler landed at No. 5 on the Lyst Index’s ranking of hottest fashion brands in Q4 2023.
Moncler similarly employed this collaboration tactic in China, where it teamed up with Beijing-based outerwear brand Christopher Raxxy for an exclusive Singles’ Day 2023 offering. The campaign video featuring Chinese actress Zhou Yutong and Chinese actor Wang Anyu gained over 9 million views on Weibo, with reactions being largely positive.
“This is definitely a breakthrough in the field of down jackets,” writes Xiaohongshu user @PoppyNg about the Raxxy collaboration. “Thank you Moncler for bringing Chinese design to the world.”
Serious China focus#
To further elevate its visibility in China, the Moncler brand also took over a local ski resort for the first time. In December, the label presented its Grenoble 2023 Fall series at the Changbai Mountain International Resort in Jilin province.
When asked about the Chinese market on the investor call, Roberto Eggs, Group Chief Business Strategy and Global Market Officer, said that Moncler remains “plus 50 percent” compared to 2021. He also hinted at strong results to come for Chinese New Year 2024, which were not included in the FY2023 report.
“The Chinese New Year we have been experiencing over the past eight weeks has been positive; positive with Chinese locally … and especially positive outside of China — in Japan, in Hong Kong, in Macau, and also in Europe, where we’ve seen a very good recovery of Chinese at the start of 2024,” he added.
Stone Island is doubling down on China too. In October 2023, the premium sportswear brand added a new flagship store in Chengdu Taikoo Li, the city’s leading luxury center. The outpost features a recycled green glass facade that echoes imperial jade, along with five black lacquered torso mannequins inspired by Chengdu’s ancient lacquerware.
At the end of December 2023, Stone Island started the process of taking full control of brand distribution in the Chinese market and opened an APAC regional office in Shanghai.
Reaching higher peaks#
It should be noted that while China’s winter sports boom has bolstered Moncler’s Asia Pacific performance, it has also benefited its competitors. This includes Arc’teryx, which was up 62 percent in Greater China in the nine months ended September 30, as well as Canada Goose, which grew revenue by 62 percent in the Asia Pacific in Q4 after boasting its “best Singles’ Day ever.”
Looking at 2024, Moncler Group remains focused on leveraging its distinctive brands to navigate the uncertain global macroeconomic and geopolitical landscape.
As Ruffini said in a statement, “At Moncler, we will continue to strengthen the three dimensions of our brand — Collection, Genius and Grenoble — while maintaining a constant connection with existing communities and reaching out to new ones. Meanwhile, Stone Island begins a new chapter, ready to express its full potential through a highly distinctive brand engagement and brand positioning strategy we recently launched.”