Moncler Group Sees No Growth in First-half Sales

Moncler Group's First Half of 2025 Performance

Moncler Group's revenues for the first half of 2025 remained consistent with the same period in the previous year, but profitability faced challenges. During the six months ending June 30, sales were flat at 1.23 billion euros. However, when adjusted for constant exchange rates, sales increased by 1 percent, aligning with market expectations.

Remo Ruffini, chairman and CEO of the group, emphasized that the first half of the year highlighted the unpredictable nature of the global environment. He stated, "These are moments that require full focus on the execution of our strategy, with strong discipline, rigor, as well as flexibility." Ruffini also stressed the importance of nurturing brands through creativity, product excellence, and community engagement, despite ongoing macroeconomic uncertainties.

Group operating profit declined by 13 percent to 224.8 million euros from 258.7 million euros in the same period of 2024. The operating margin fell to 18.3 percent from 21 percent, primarily due to a shift in the timing of marketing expenses between the first and second halves compared to the previous year.

Net profit for the period was 153.5 million euros, a decrease of 15 percent from 180.7 million euros in the first half of 2024.

During a conference call with analysts, Roberto Eggs, chief business strategy and global market officer, pointed out a slowdown in tourism, especially from Chinese, American, and Korean travelers in Europe. These markets account for approximately half of the group’s sales in the region. While he noted positive trends in the U.S., he acknowledged that these were less robust in Europe. In China, the performance was stable or slightly positive, while local spending in Europe remained flat. In Korea, there was a slight recovery in tourism from China, but Japan showed negative performance, mainly due to currency effects.

Eggs mentioned that the second and third quarters are particularly sensitive to tourism, with conditions remaining volatile. Both Eggs and Luciano Santel, group chief corporate and supply officer, highlighted the limited visibility ahead due to uncertain macroeconomic and geopolitical factors.

Brand Performance

Moncler's sales in the first half of 2025 remained flat at 1.04 billion euros. Stone Island saw a minor decline of 1 percent, reaching 186.7 million euros compared to 188.9 million euros in the same period of 2024.

In the second quarter, group revenues decreased by 1 percent at constant exchange rates to 396.6 million euros. Moncler's revenues in the second quarter amounted to 317.2 million euros, down 2 percent at constant exchange rates, primarily due to a slowdown in the DTC channel, reflecting challenging global economic conditions.

Stone Island's revenues in the second quarter reached 79.4 million euros, up 6 percent at constant exchange rates. The DTC channel continued to show strong growth, while the wholesale channel improved sequentially.

Regional Performance

In the first half of 2025, Moncler's revenues in Asia (including Asia-Pacific, Japan, and Korea) rose by 2 percent to 525.7 million euros. At constant exchange rates, this represented a 4 percent increase. In the second quarter, revenues in the region remained flat. The slowdown compared to the first quarter was largely due to weaker tourist flows in Japan, which faced a high comparable base. Korea saw a slight improvement, supported by stronger tourism spending, while China and the rest of Asia maintained their performance.

The Europe, Middle East, and Africa (EMEA) region experienced a 4 percent decline in revenues to 365.4 million euros. In the second quarter, revenues in the region dropped by 8 percent at constant exchange rates, mainly due to a slowdown in tourist flows.

Revenues in the Americas were flat at 147.9 million euros. In the second quarter, revenues in the region increased by 5 percent at constant exchange rates, driven by improvements in the DTC channel.

Strategic Initiatives and Store Expansions

Gino Fisanotti, Moncler's chief brand officer, highlighted several U.S.-oriented initiatives, including the brand's participation in the Met Gala in May, the Moncler Genius collection with Mercedes-Benz by Nigo, and the debut of a new apparel collection in collaboration with Donald Glover's Gilga Farm. Fisanotti emphasized that future projects for Moncler Genius and Moncler Grenoble would be announced soon, with an evolution expected for the Genius line.

In the first half of 2025, the DTC channel recorded revenues of 883.2 million euros, up 1 percent. However, the second quarter saw a slowdown due to challenging global economic conditions affecting consumer confidence and a decline in tourist flows, particularly in EMEA and Japan. Revenues in the Americas accelerated sequentially.

The wholesale channel recorded a 6 percent decline in revenues to 155.8 million euros.

As of June 30, there were 287 directly operated Moncler monobrand boutiques, a net increase of three units. New openings included the Sydney Westfield store in Australia, the conversion of the Chongqing airport store in China, and the King of Prussia store in Philadelphia. A flagship store in New York is expected to open in the first quarter of 2026.

Stone Island Performance

Stone Island's sales in Asia rose by 12 percent to 52.3 million euros, driven by the continued solid performance of China and Japan. In EMEA, revenues fell by 4 percent to 123.3 million euros, but the second quarter saw a 5 percent increase at constant exchange rates due to improvements in the wholesale channel.

Revenues in the Americas declined by 17 percent to 11 million euros, with a slight recovery in the second quarter. The performance in the U.S. was mainly driven by the DTC channel.

The DTC channel for Stone Island grew by 7 percent to 99.1 million euros, though it slowed in the second quarter due to a more challenging global operating environment. Asia outperformed other regions.

The wholesale channel recorded revenues of 87.6 million euros, down 9 percent, with improvements in the second quarter due to different delivery timing.

As of June 30, there were 91 directly operated Stone Island monobrand stores, a net increase of one unit. Relevant activities included the opening of the Hangzhou Euro Street store in China and the relocation of the Hankyu Men store in Osaka. The Stone Island brand also operated 11 monobrand wholesale stores.

Capital Expenditures and Financial Position

In the first half of 2025, capital expenditures amounted to 82 million euros, or 6.7 percent of revenues, compared to 56.1 million euros in the first half of 2024. This increase was due to higher investments in the distribution network and infrastructure projects, including the new corporate headquarters.

Investments in the distribution network totaled 50.7 million euros, while infrastructure-related investments reached 31.3 million euros. Santel expects capital expenditures to represent around 7 percent of revenues by the end of the year, slightly above the previous year.

Both Eggs and Santel confirmed that prices had been modestly increased to protect margins. They added that price increases would not be significant enough to offset additional tariffs, and it was still early to decide on plans for the second half of 2026.

The group's net financial position stood at 980.8 million euros in net cash, compared to 845.8 million euros at the end of June 2024, following a dividend payment of 345 million euros.