Covid-19 is going to hinder Moncler’s business boost as well. In fact, after 24 quarters in double figures, in 2020 first term the fashion brand’s sales dropped by 18%(both at fixed and floating rates of exchange) compared to last year. That is why the company’s Board of Directors decided to cancel the allocation of 2019 shares of profits. In addition, announced Moncler, the Board of Directors and Chief Executive Officer Remo Ruffini (Imagoeconomica picture, in the middle) will give up their floating wages. CEO Ruffini will allocate his fixed wages to charity projects.
24 quarters in double figures
From January to March 2020, revenues from sales reached 310.1 million euros. Yet, in other words, they went beyond financial analysts’ expectations, which amounted to 304 million euros (data source: Refinitiv, quoted by Reuters). After a relentless business growth, enjoyed by the brand over the past years, the pandemic impact has been eventually affecting Moncler. They suspended non-essential projects (including some about retail sales) and, at the same time, they reduced by 30% a few investments formerly planned for 2020.
“We shall recollect the first three months of the year as a divide between “before” and “after” (the pandemic) – remarked Ruffini –. All of a sudden, we had to face an unknown “enemy”, which proved to be spreading fast and worldwide. We realized that we had to take extraordinary and prompt action to tackle it properly. After going through health emergency, over several weeks, we must now focus our efforts on the days to come, that is, our recovery”.
A good final quarter, hopefully
Meanwhile Moncler, as announced by Ruffini while talking to MFFashion, “reopened, since Monday (20thApril, editor’s note), almost the whole of their selling stores based in Germany, except the one in Munich”. They hope they will succeed in regaining some ground in the final months of 2020, considering that the brand usually achieves 40% of its annual sales in the last quarter. As stated by Luciano Santel (Moncler Chief Corporate and Supply Officer), the company hopes “they will be able to manage a reasonable profitability” throughout 2020. “Considering that our products are seasonal, things would have been much worse if the pandemic had broken out in September or October”. Analysts (quoted in a report posted on the company website) tend to believe that Moncler sales will possibly decrease by 6% in 2020. Much less, then, compared to a vast majority of their business competitors.