The decline in Moncler’s revenues slowed down in the third quarter to a rate of 15 percent, or 14 percent in local currencies, falling to a level of €361.8 million. The management reported high and constantly improving growth in China. Without providing the details, the management said that other markets and all distribution channels showed continuous progress in their performance, although it was in many cases still negative.
For the nine months through Sept. 30, the Italian luxury sportswear company reported a 23 percent drop in consolidated revenues to €765.1 million. Wholesale revenues declined by 14 percent to €262.4 million, representing 34.3 percent of the total turnover for the period. Because of the retail lockdowns, especially in the first part of the year, retail sales fell by 27 percent to €502.7 million.
During the third quarter, only the company’s stores in Istanbul, Melbourne and at Hong Kong’s airport remained closed. The number of directly operated stores was up to 217 units on Sept. 30, four more than on June 30 and eight more than Dec. 31. The company also operated 63 shop-in-shops at wholesale accounts, one fewer than on Dec. 31. Meanwhile, the online channel continued to register double-digit growth.
Regionally, sales in Italy fell by 34 percent during the nine-month period, representing 11.3 percent of total revenues. Lower declines were recorded in the other markets. In constant currencies, they were off by 21 percent in the rest of the EMEA region, by 28 percent in the Americas and by 18 percent in Asia and the rest of the world.
The drops in Italy and the rest of EMEA were partly due to a lack of foreign travelers. In the latest quarter, the local demand remained solid. Germany, Russia and the Middle East outperformed the rest of the region, but France remained weak.
Sales in Asia and the rest of the world, which represented 42.6 percent of the world total for the nine months, were down by only 4 percent in the third quarter, thanks to “outstanding performance” in Mainland China and Korea, which was offset by declines in Hong Kong and Japan.
The company did not comment on the bottom line. It indicated that the better-than-expected end of the third quarter continued into October, sending out an encouraging sign for the holiday season. It said it will keep strict cost control measures, including a limitation on seasonal hires in its stores, negotiations with landlords and a focus on cash generation.