Moncler beats the Street… and itself!
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Moncler beats the Street… and itself!

Italian luxury outerwear specialist Moncler had a nice surprise for investors this week, when it released positive half-year figures that beat expectations and its own guidance. The company’s strong performance was driven by sales in Asia, and more than justify its new “Genius strategy,” – a move away from the traditional seasons of the fashion world and its focus on runway-led pipelines.

Moncler’s share price has appreciated by 44% year to date

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Source: Yahoo Finance

Moncler’s Genius strategy relies on monthly product launches and no lag time between release and availability. It stems from the fashion house’s observation that the traditional fashion world needs updating. Once, fashionistas would attend catwalk events, get access to the clothes in high-end boutiques later that year and then, a full season later, they might filter down to the rest of us. But in a world of social media and fast fashion turnarounds, that’s simply not practical anymore.

Now, young consumers want to get their hands on new styles instantly, and don’t expect to follow the goings-on of Paris, Milan, London and New York Fashion Weeks. If Moncler’s last six months is anything to go by, then the company was right.

Moncler said that revenue for the first half of 2018 rose by 21% against the same period in 2017 to €493.5 million. The outperformer for the company was undoubtedly the Asian region, which saw a sales rise of 32% against the same period last year. That market made up a full 40% of Moncler’s sales this time round.

The company’s chairman and CEO, Remo Ruffini, made the following comment in a statement: “The results we are releasing today once again, not only beat market expectations, but even our own estimates.”

Disclosure
Dominion holds Moncler in its Global Trends Luxury Fund.


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