Moncler: strong performance in 2017, more on the cards for 2018
Italian luxury clothier Moncler – famed for its fashionable outerwear – said last Monday that it saw a 15% rise in revenue through 2017. And, thanks to its new product strategy, which is based on faster-paced collections to keep up with high street trends, it expects more growth in 2018. This is great news for investors, who understandably sent the company’s share price higher at the end of February on the back of the announcement.
Moncler’s share price surged towards the end of the month
SOURCE: Yahoo Finance
In 2017, revenue rose to €1.194 billion – narrowly beating out analysts’ expectations of €1.183 billion. Adjusted for constant currency, that represents a sales increase of 17%.
Moncler’s plan for increased growth in 2018 is simple: ditch the catwalk, and make an effort to appeal to fashion’s younger, quicker, and more fickle audiences. Moncler’s chairman and CEO, Remo Ruffini, said in a statement: “We have decided to start a new exciting and challenging chapter for our business, which I strongly believe, will drive us to new heights with greater determination.”
This isn’t the first we’ve heard about Moncler’s new strategy – it’s been in the works since at least last November, when the company first suggested it would end certain catwalk lines. At the time, Ruffini said that the group had to “open up towards different horizons”. In 2018, we’ll see how that plays out.
Dominion holds Moncler in its Global Trends Luxury Fund.
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