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Moncler annual revenues jump 27 percent, reports growth across markets

By Prachi Singh

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Business |REPORT

In 2015, Moncler recorded revenues of 880.4 million euros (962.6 million dollars), an increase of 27 percent at current exchange rates and an increase of 19 percent at constant exchange rates.

“2015 was another year of solid, double-digit growth for Moncler which means we have achieved the results expected by the market at the time of our IPO one year ahead of schedule. Our net profit reached 168 million euros, up 29 percent, while net cash generation amounted to 61 million euros. Even though for global markets as a whole 2016 has begun in a climate of economic uncertainty, I am convinced that this will be a year of further growth and consolidation for Moncler,” said Remo Ruffini, Moncler’s Chairman and Chief Executive Officer.

Moncler achieved revenue growth in all regions

In Asia & Rest of the World, revenues increased 28 percent at constant exchange rates and 42 percent at current exchange rates, with positive results in all markets. A solid performance was achieved in China, Hong Kong and Japan, with Japan, in particular, benefited from the opening of the flagship store in Tokyo Ginza. Results from newly opened stores in Macau and Singapore also exceeded management’s forecasts. Furthermore, Moncler had good growth in Korea, a market that has been directly controlled by Moncler since the beginning of 2015.

Excluding Korea, revenues in Asia & Rest of the World grew 34percent at current exchange rates. In the Americas, the company recorded 27 percent growth at constant exchange rates and 48 percent at current exchange rates, driven by the expansion in North America of both distribution channels. Canada increased significantly in 2015, albeit from a small base. Results in the United States were in line with management expectations, despite revenues in the fourth quarter affected by an extraordinarily mild winter season. In EMEA, Moncler grew 13 percent at constant exchange rates and 15 percent at current exchange rates, with positive results from France, the United Kingdom and Germany.

Both retail and wholesale channels grew in FY15

Both retail and wholesale channels drove the performance in the United Kingdom, while the growth in Germany was mainly due to healthy results in the retail network. In Italy revenues rose 5 percent compared to 2014 driven by the good results of the Directly Operated Stores (DOS).

Revenues from the retail distribution channel increased 33 percent at constant exchange rates and 44 percent at current exchange rates. This performance was due to solid organic growth and the continued development of the network of mono-brand retail stores (DOS). Moncler achieved comparable store sales growth of 6 percent in 2015. The wholesale channel revenues were down 5 percent at constant exchange rates and 1 percent at current exchange rates. This result includes the impact of the conversion of the Korean business from wholesale into retail, from January 1, 2015. Excluding Korea, wholesale was stable at constant exchange rates and rose 5 percent at current exchange rates.

As at December 31, 2015, Moncler’s mono-brand distribution network consisted of 173 directly operated stores (DOS), an increase of 39 units compared to last year and 34 shop-in-shops. Moncler opened 27 new DOS during 2015, including: - the flagship store in Tokyo, the first stores in two new markets: Macau and Singapore and the consolidation of the retail presence in North America. Furthermore, following the establishment of the Korean joint venture Moncler Shinsegae, on 1 January 2015 the 12 existing mono-brand stores in Korea, previously operating as wholesale shop-in-shops, were converted to retail DOS.

Adjusted EBITDA rose to 300 million euros (328 million dollars), resulting in an EBITDA margin of 34.1 percent. Adjusted EBIT4 was 264.1 million euros (288.8 million dollars), resulting in an EBIT margin of 30 percent. Including non-recurring costs, EBIT margin of 28.7 percent was broadly in line with the margin achieved in 2014. In 2015, net income increased 29 percent.

The Board of Directors has decided to propose to shareholders the payment of a dividend of 35 million euros (38.2 million dollars) for 2015, equal to 0.14 euros (0.15 dollars) per ordinary share and representing a pay-out ratio of 21 percent of net income.

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