Moncler to open more stores, increase online sales

MILAN (Reuters) -Italian luxury group Moncler said on Thursday it would open or refurbish 200 stores in the next three years and raise online sales for its eponymous brand known for its puffer jackets to 25% of total revenues.

The group, which in 2020 acquired streetwear brand Stone Island, also plans to further diversify its offering away from winter clothing, with spring-summer collections accounting for up to one third of revenues in 2025, and footwear reaching 10% of sales, it said in slides ahead of an investor presentation.

Currently about 75% of revenues come from outerwear, according to Barclays (LON:BARC) 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.

Online sales stood at 15% of total at the end of 2020, up from 10% in 2019, before the coronavirus pandemic.

Moncler, which on Wednesday reported a 60% jump in first-quarter sales, has like most rivals seen revenues boom in Europe and the United States as COVID-19 restrictions eased.

But it faces a setback in the key Chinese market where a strict lockdown has been imposed in the luxury hub of Shanghai and other cities since March.

On Wednesday it said around 30% of its main brand's stores in China were currently closed because of 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 rivals to risks of a prolonged shutdown as the second quarter is seasonally less important for its annual earnings, analysts say.

In its presentation, the group said it planned 10-14 new openings in the Asia Pacific region, including a flagship store in Beijing, adding it would create a China business unit at its headquarters and reinforce its organisation in the country.