Italian luxury group, Moncler, is expected to announce a significant increase in quarterly sales, dispelling worries about the unusually warm weather. Despite 2023 being projected to be the hottest year since at least 1940, Moncler’s robust brand strength and diversified product range have successfully mitigated the impact. The company will release its financial results on Thursday, following a slowdown in growth reported by LVMH, the French luxury conglomerate, earlier this month. Additionally, French luxury group Kering recently disclosed a larger-than-anticipated drop in third-quarter sales, further raising concerns within the luxury and fashion industry.

Industry analysts predict that Moncler’s sales will rise by approximately 8% at constant exchange rates in the third quarter, amounting to €670 million ($711 million). This growth is primarily driven by the Asia-Pacific region, while sales in the Americas are expected to weaken due to the transition of some U.S. stores from wholesale to retail. UBS analysts suggest that the weaker exit rate in the third quarter can likely be attributed to hot weather, underscoring the importance of October’s comments in assessing underlying trends. However, they also emphasize that Moncler’s brand momentum continues to be strong.

Moncler experiences a greater concentration of retail sales in the first and fourth quarters, as coats and winter products comprise its main focus. Flavio Cereda, co-investment manager of luxury brands at GAM, explains that if mild temperatures persist from October to December, the impact would be more serious. Although Moncler has become less reliant on seasonality compared to its past, its core identity still lies in outerwear, as the company was originally founded as a provider of Alpine mountain goods.

With anticipation of more extreme climate events and unpredictable weather patterns, Moncler is actively preparing to adapt to these challenges. In a conference call held in July, Moncler’s Business Strategy Chief, Roberto Eggs, emphasized the company’s offering of light and warm products for both spring/summer and autumn/winter collections. Moncler is also actively working on multilayering, which adds functionality to their outerwear.

Despite concerns regarding the warmer weather, Moncler’s strong brand, diversification, and proactive approach to climate challenges have played crucial roles in maintaining the company’s growth. The announcement of third-quarter results is highly anticipated, as it will provide further insights into Moncler’s performance and the overall state of the luxury and fashion industry.

Useful Links:
1. Moncler Official Website
2. Business of Fashion