Moncler bets on store expansion, shoes to drive growth, Retail News, ET Retail

MILAN (Reuters) – Italian luxury group Moncler said on Thursday it would open, refurbish or relocate 200 stores over the next three years, mostly in Asia, and diversify into footwear and clothing for warmer weather.

The group, which in 2020 acquired streetwear brand Stone Island, also said it expected to beat analyst forecasts for annual sales of 2.43 billion euros ($2.57 billion) this year – up 18.5% from last year – predicted another round of lockdowns in some Chinese cities ended in July.

“We believe we can achieve 20-25% (sales) growth,” Luciano Santel, chief corporate and supply officer, told reporters on the sidelines of an investor presentation.

Spring-summer collections will account for up to a third of revenue in 2025, and footwear – including sneakers – will reach 10% of sales, Moncler, known for its down jackets, said in slides ahead of the event.

Currently, around 75% of revenue comes from outerwear, according to Barclays analysts, who cited knitwear as another diversification option for the brand.

By 2025, Moncler expects more than 50% of growth to come from China and the United States, the group said.

The store expansion plan – which covers both the Moncler brand and the Stone Island label – foresees up to 38 openings in Asia, including Japan and South Korea, 22 in Europe and the Middle East, and nine in the Americas over the next three years.

The Moncler brand also aims to increase online sales to 25% of its total revenue by 2025, up from 15% in 2021.

Moncler, which reported a 60% rise in first-quarter sales on Wednesday, like most rivals saw revenue rebound in Europe and the United States as COVID-19 restrictions eased. .

But it faces a setback in the Chinese market, the most important for sales of high-end products, where a strict lockdown has been imposed in luxury hub Shanghai and other cities since March.

On Wednesday, it said about 30% of its main brand’s stores in China were closed due to the restrictions, up from 10% in March.

Just over a third of Moncler’s retail sales came from China last year, but the brand is less exposed than its rivals to the possibility of an extended shutdown, as the second quarter is seasonally less important to its profits. annually, according to analysts.

In its presentation, the group said its planned openings in China included a flagship store in Beijing, adding that it would create a business unit in China at its headquarters in Milan.

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