Moncler Sales Growth Slows in Third Quarter

Shares in Moncler have experienced a decline after the fashion group reported slower sales growth in the third quarter of the year. This deceleration can be attributed in part to a more challenging comparable base.

As of 0743 GMT, Moncler’s stock was trading 5.2% lower at EUR49.17.

During the July-September period, the Italian fashion brand generated revenue of 669.7 million euros ($707.6 million), representing a 7% increase compared to the previous year. However, this growth was notably slower than the 24% growth achieved in the first half of the year.

Moncler, renowned for its high-end puffer jackets, attributed the slower growth to both a tougher year-on-year comparison and a decline in the performance of its online channel, particularly in the EMEA region.

Stifel analyst Rogerio Fujimori noted that the management mentioned a slowdown in global direct-to-consumer (DTC) momentum for Moncler since mid-September, which persisted throughout October. Additionally, Moncler acknowledged the impact of warm weather during the September-October period.

Jefferies analysts stated that while warm weather did disrupt some markets towards the end of the third quarter and the beginning of the fourth quarter, there could be deeper cyclical forces at play affecting Moncler’s sales. They also suggested that Moncler’s reputation as a luxury safe haven might now be under scrutiny.

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