Moncler’s new strategy continues to pay off – sales rose 14% in the first quarter
Italian outerwear maker Moncler – once famous for its stylish ski-wear, now a more well-rounded fashion house – has seen incredible, and consistent, success with its new strategy: the Genius collections. Genius is a term to describe new collections that the company is putting out under the auspices of a set of the world’s most sought-after designers.
Along with these collections comes a new approach to fashion – one that puts the high street before fashion week and leverages social media and other channels to give millennial consumers the brand experience they’re looking for. SO far, it’s been an incredible success – and the company’s success in the first quarter of this year reiterates that point.
Moncler’s share price has appreciated by 14% so far this year
Source: Yahoo Finance
Speaking about its most recent quarter, Moncler said that sales rose by 14% year on year, driven by strong performance in mainland China and South Korea. That amounts to a total 378.5 million euros – a beat against analysts’ expectations of 374 million euros. Stripping out the effect of currency moves, that 14% becomes a still-impressive 11% increase against the previous year.
In 2018, Moncler’s Genius collections spurred the brand on to new heights, delivering an 19% increase in sales against the previous year. The fact that the same strategy is still driving double-digit growth despite strong comparables adds credence to the opinion that Moncler knows what it’s doing.
In a statement over the results, CEO Remo Ruffini said: “These figures, together with our performance over the past few weeks and the important projects that await us, make me look into the future with high confidence, even if we all know very well that the basis of comparison remains important.”
Dominion holds Moncler in its Global Trends Luxury Fund.
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