In 2020 third quarter, Moncler overall revenues decreased by 15%. Yet, despite that, “they are constantly growing”. A negative result in the end, which went beyond expectations though, mostly driven by positive figures in online sales and in China. Such considerable improvement goes hand in hand with October “comforting signs”, yet “we are fully aware we are about to face, ahead of us, a few challenging weeks, which the current economic and health emergency is bound to make even more unpredictable”, commented Chief Executive Officer Remo Ruffini.
A considerable improvement
Over 2020 third quarter, Moncler revenues reached 361.8 million euros, therefore decreasing by 15% at current rates of exchange and going down 14% at fixed rates of exchange. Financial analysts’ estimates amounted to 340.7 million euros. The reopening of selling stores, in summer, remarkably drove a boost in sales in China and South Korea. On top of that, it also led to “a considerable improvement” in the United States since August. Throughout the first 9 months of 2020 business year, the brand’s earnings reached 765.1 million euros, thus dropping by 23% at current rates of exchange and decreasing by 22% at fixed rates of exchange.
A constant growth
“We successfully achieved, at the end of the third quarter of the year, some results going beyond our expectations. For the records, the Chinese market is growing considerably and keeps going better and better. Likewise, several other markets, as much as all distribution and supply channels, are carrying out a constantly growing performance, still proving negative, though, in lots of cases”, pointed out Ruffini. In his opinion, Moncler had to act with higher responsiveness and flexibility to face and tackle the pandemic and its detrimental effects.
They did it by “holding on to an efficient cost structure, which is undoubtedly a paramount asset for a successful business”. They have planned some investments mostly focusing on digital and e-commerce. “Cash is king is extremely important at present, more than ever”, they remarked in a press release. As for outlook, despite October “comforting signs”, still the group has not made public any estimates about the last quarter of the year.
In the picture: Remo Ruffini, right; a leather biker jacket, created by Lewis Leather by Hiroshi for the Moncler Genius project, left