• Group Revenue: Above EUR 3.1 billion.
• EBIT Margin: 29.5%.
• Cash Balance: EUR 1.3 billion.
• Moncler Revenue: EUR 2.707 billion, up 8% compared to 2023.
• Moncler D2C Revenue: EUR 2.332 billion, up 11% versus 2023.
• Moncler Wholesale Revenue: EUR 375 million, down 7% versus 2023.
• Stone Island Revenue: EUR 401 million, down 1% compared to 2023.
• Stone Island D2C Revenue: EUR 209 million, up 23%.
• Stone Island Wholesale Revenue: EUR 192.7 million, down 19%.
• Total Store Count: 286 for Moncler and 90 for Stone Island.
• Net Income Margin: 20.6%.
• Dividend Proposal: EUR 0.30 per share, with an expected cash out of about EUR 350 million.

• Warning! GuruFocus has detected 1 Warning Sign with MONRF.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Moncler SpA (MONRF) achieved group revenues above EUR3.1 billion in 2024, with both Moncler and Stone Island delivering double-digit growth in the DTC channel.
• The company maintained a resilient EBIT margin at 29.5% and reached EUR1.3 billion of cash on its balance sheet.
• Moncler SpA's sustainability efforts have been recognized in key rankings, showcasing their commitment to environmental and social responsibility.
• The Moncler Grenoble event in St. Moritz and Moncler Genius in Shanghai were successful in reshaping the brand experience and increasing global brand awareness.
• Stone Island has focused on refining its product offering, elevating its distribution footprint, and establishing a distinctive brand positioning, leading to improved brand visibility and engagement.

Negative Points

• The global macro environment remains uncertain, posing potential challenges for future growth.
• Moncler SpA's wholesale revenues declined by 7% in 2024, impacted by challenging market trends and distribution upgrades.
• Stone Island's total revenues decreased by 1% compared to 2023, indicating a need for further brand development and market penetration.
• The company faces a high comparable base and macroeconomic conditions that could affect future performance, particularly in key markets like Japan and Korea.
• Despite positive results, Moncler SpA's operating profit margin slightly decreased from 30% in the previous year to 29.5% in 2024.

Q & A Highlights

Q: Given the vitality and resonance of the Moncler brand, how do you view the long-term growth prospects, and what role does pricing play in this? A: Luciano Santel, Executive Director, Group Chief Corporate and Supply Officer, stated that the growth rate is expected to be closer to mid-single digits due to the expansion and relocation of existing stores. Pricing is expected to increase mid-single-digit due to inflation, with no significant price hikes anticipated unless driven by inflation.

Q: Can you provide insights into the growth by nationality clusters, particularly the Chinese market, and any observed changes in consumer behavior? A: Roberto Eggs, Executive Director, Group Chief Business Strategy and Global Market Officer, noted that Chinese growth was double-digit in Q4, driven by both local and offshore sales. The performance was not solely due to the Chinese New Year. Consumer behavior showed a trend towards concentrating spending around key events, with Moncler being top of mind during peak seasons.

Q: What are the strategic plans for Stone Island in 2025, and when can we expect to see growth momentum? A: Robert Triefus, CEO of Stone Island, mentioned that the foundations for growth are in place, with a focus on core categories and strategic wholesale partnerships. 2025 is expected to see continued momentum in the DTC channel, with wholesale remaining negative but improving.

Q: How do you plan to allocate capital for Moncler, and what are the growth opportunities? A: Roberto Eggs highlighted that retail expansion is a priority, with a focus on quality over quantity. There are plans for selective projects that enhance brand visibility, such as flagship stores and strategic relocations. Gino Fisanotti, Chief Brand Officer, added that brand innovation and elevating Moncler collections are key growth drivers.

Q: What are the expectations for Moncler's wholesale performance in 2025, and how do you plan to use your cash reserves? A: Roberto Eggs expects Moncler's wholesale to remain in line with 2024, focusing on enhancing network quality. Luciano Santel stated that there is no M&A strategy, and the focus remains on Moncler and Stone Island. The company plans to increase its dividend payout, reflecting strong cash generation.

Q: Can you provide details on Moncler's retail KPIs for 2024 and the start of 2025? A: Roberto Eggs reported positive retail KPIs, with traffic slightly negative but offset by conversion rates. Average selling prices increased, and sales density reached record levels. The start of 2025 showed a continuation of positive trends, particularly with Chinese consumers.

Q: What are the growth engines behind Moncler's performance in China, and what are Stone Island's plans in the region? A: Roberto Eggs attributed Moncler's success in China to a strong local team, premium location upgrades, and brand events like the Genius show. For Stone Island, Robert Triefus highlighted the establishment of a regional office and a focus on CRM and localized marketing strategies.

Q: How do you view Moncler's positioning in the US, and what are the plans for store expansion? A: Roberto Eggs sees the US as a significant growth opportunity, with plans for retail expansion and increased brand visibility. Gino Fisanotti emphasized the importance of brand awareness and leveraging Moncler Grenoble and Genius as key drivers in the US market.

Q: What are the expectations for Stone Island's pricing and mix in 2025? A: Robert Triefus indicated no significant price increases are planned, with a focus on core categories driving positive mix contributions.

Q: What is the realistic EBIT margin for Moncler in 2025, and what is the current price gap between regions? A: Luciano Santel aims to maintain an EBIT margin around 29-30%, depending on top-line growth. The price gap with China is below 140, with a target of 130, while the US is slightly above 1.3.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.