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Moncler
Interim / Quarterly Report • Apr 22, 2020
4110_rns_2020-04-22_64c0f544-f6b5-4ffd-a45a-f39665aeaa52.pdf
Interim / Quarterly Report
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Q1 2020 Interim Management Statement
:
MONC
IINFO
"Together we are facing these difficult moments Together we are reacting to them Together we are supporting our community Together we have adapted our way of working Together we are shaping our new future and together, I am sure, we will come out of this situation, stronger than before"
MONCLER VALUES
PUSH FOR HICHER PEAKS BRING OTHER VOICES IN EMBRACECRAT KPP WARM PLANIBEYOND TOMORROW
MONCLER PURPOSE
EMBRACE THE EXTRAORDINARY AND DISCOVER THE CENTOS WITHON
CONSOLIDATED REVENUES
EUR 310.1M, -18% AT CONSTANT EXCHANGE RATES (-18% REPORTED)
WITH NEGATIVE PERFORMANCES IN THE RETAIL AND THE WHOLESALE CHANNELS, DUE TO COVID-19 outbreak worldwide
RETAIL REVENUES
EUR 236.3M, -19% AT CONSTANT EXCHANGE RATES (-19% REPORTED)
REPRESENTING 76% OF TOTAL REVENUES
STORE CLOSURES AND DECLINING TRAFFIC IMPACTED PERFORMANCE
DIRECTLY OPERATED STORES
213 RETAIL MONO-BRAND STORES (DOS)
AS OF 31 MARCH 2020
4 OPENINGS IN Q1 2020
SHOP-IN-SHOPS
64 WHOLESALE MONO-BRAND STORES (SIS) AS OF 31 MARCH 2020 SAME AS OF 31 DECEMBER 2019
(*) Rounded figures and unaudited numbers (this applies to all pages of this presentation)
REVENUE BREAKDOWN BY DISTRIBUTION CHANNEL
In Q1 2020 Moncler's revenues decreased by 18%(*) as a consequence of the new coronavirus (Covid-19) pandemic
During the quarter, exceptional measures to limit the spread of the virus have been implemented by governments
In many countries where the Group operates, all non-essential activities have been progressively closed, including retail stores and wholesale shops, with negative consequences on both channels
Retail posted a -19% result. Online recorded a positive performance
Wholesale revenues decreased by 15% also reflecting postponement of deliveries and actions to limit the "overstocking" of the channel. E-tailers reported positive performances
(*) All growth rates are at constant exchange rates, unless otherwise stated
REVENUE ANALYSIS (Eur M)
YoY Growth YoY Growth Reported Const. FX 378.5 53.5 -18% -18% 310.1 41.7 -22% -23% 171.1 -23% -23% 132.7 108.1 101.2 -6% -7% 45.8 34.5 -25% -25% Q1 2019 Q1 2020 ■ Americas 14% | 12% 13% | 11% / Asia & RoW E EMEA 29% 33% l Italy 43% 45%
REVENUE ANALYSIS (Eur M)
In Q1 2020 Moncler posted negative results(*) in all regions
Italy registered a -25% performance, being severely impacted by the store network's closure
EMEA revenues decreased by 7%. Germany and Middle East outperformed
Asia & RoW reported a negative 23% result. Korea and Japan outperformed
Americas delivered a negative 23% with similar performances in both distribution channels
(*) All growth rates are at constant exchange rates, unless otherwise stated
7
EMEA, including Italy, posted a -12%(*) in Q1 2020 with both distribution channels recording negative performance
Online showed positive growth in both channels
Middle East and Germany outperformed in the quarter driven by the retail channel, also helped by a larger number of days where stores could open
Italy and France have been negatively impacted by store closures and by the significant decrease in traffic since the virus outbreak in Europe
REVENUE ANALYSIS (Eur M)
(*) All growth rates are at constant exchange rates, unless otherwise stated
Asia recorded a double-digit revenue decrease in Q1 2020 (-23%(*)
China performance has been impacted by the lockdown imposed to mitigate the Covid-19 pandemic since the end of January, and showed initial signs of recovery in March. HK SAR significantly underperformed the rest of the region
Japan recorded a single-digit decline in revenues in the quarter, outperforming the regional trend. Good local demand partially offset the reduced stores' working hours and the lower traffic due to the Covid-19 outbreak.
Korea has been the best performing market in the region, notwithstanding the decline in travellers. Brand strength and a sound local demand have supported performance
(*) All growth rates are at constant exchange rates, unless otherwise stated
Reported Const. FX 378.5 53.5 -18% -18% 310.1 41.7 -22% -23% 171.1 -23% -23% 132.7 108.1 101.2 -6% -7% 45.8 34.5 -25% -25% Q1 2019 Q1 2020 Americas 12% 13% | 11% 14% Asia & RoW EMEA 29% 33% ■ Italy 43% 45%
YoY Growth
YoY Growth
REVENUE ANALYSIS (Eur M)
Americas revenues decreased by 23%(*) in the first three months of 2020
Both distribution channels registered negative performances in the period due to declining traffic, lower tourist numbers and store closures by mid March
The two main markets in the region, US and Canada, have been negatively impacted by the measures implemented to contain the virus spread
YoY Growth
YoY Growth
REVENUE ANALYSIS (Eur M)
(*) All growth rates are at constant exchange rates, unless otherwise stated
Moncler's retail network reached 213 mono-brand stores as of 31 March 2020, compared to 209 at 31 December 2019
- · 4 new DOS opened in Q1 2020, including the store in Kiev
- · In the quarter, 12 stores have been temporarily closed an average of 30 days in Jan-Feb and 109 stores have been closed an average of 15 days in March
- · At the end of March 111 stores were still closed
- · Additional 19 stores have been temporarily closed as of today (22 April 2020)
- · Some 12 new openings, in total, expected in 2020
Wholesale mono-brand stores reached 64 locations at the end of March same as of 31 December 2019
• 3 new SiS expected in FY 2020
| 31/03/2019 | 31/12/2019 | 31/03/2020 | |
|---|---|---|---|
| Retail | 197 | 209 | 213 |
| ltaly | 20 | 19 | 19 |
| Rest of EMEA | 55 | 56 | 57 |
| Asia & ROW | 95 | 104 | 104 |
| Americas | 27 | 30 | ਤੇ ਤੇ |
| 31/03/2019 | 31/12/2019 | 31/03/2020 | |
| Wholesale | 61 | 64 | 64 |
COVID-19 ACTIONS
| Remote working, All office-based employees where social distance restrictions have been enforced started to work remotely. Italian HQs are in remote working since 23 February. Stringent health measures guaranteed in all sites where people are at work People Remuneration. Same level of salary guaranteed to all our people worldwide even if currently not working. Implemented application for government benefits. CEO waived its 2020 compensation. Executives renounced their variable compensation #stayhome. "Energy plan" activities in place for all Moncler's people |
|
|---|---|
| Brand and Clients |
Communication. Reset of content and tone of voice in line with current global situation. "Warmly Moncler" project currently communicated on our digital channels Clients. Knowing how to talk, engage and stay tuned with clients, in particular with the domestic ones, will define the sector's winners. Moncler's "store re-starting plan" in place |
| OPEX and CAPEX |
Core projects. Digital and e-commerce remain Moncler's projects. All non-priority projects have been postponed. Capex cut by 30% in FY 2020 Inventories. To preserve Brand's integrity, we have immediately acted to reduce inventories by cutting OtB for FW20 Marketing. Postponed Moncler's products campaign. Reduced media budget Rents. Discussions with landlords in progress |
| Cash | Rigour. Cash is king is more important than ever today. Moncler has always been managed to safeguard Brand's health and cash generation. This rigour is even stronger today and would support the Group to weather current storm Dividend. We have decided to withdraw the dividend payment to further strengthen Moncler's balance sheet |
KIEV
APPENDIX
2019 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL
| Eur m | Q1 | YoY growth | Q2 | YoY growth | 03 | YoY growth | Q4 | YoY growth | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2019 | 2018 | Rep. | ex FX | 2019 - | 2018 | Rep. | ex FX | 2019 | Rep. | ex FX | 2019 | 2018 | Rep. | ex FX | |||
| ltaly | 45.8 | 43.3 | +6% | +6% | 22.7 | 20.1 | +13% - | +13% - | 62.1 | 59.5 | +4% = | +4% | 54.4 | 45.0 | +21% | +21% | |
| EMEA (excl. Italy) | 108.1 | 96.5 | +12% | +12% - | 60.8 | 50.4 | +21% | +21% - | 133.5 | 125.5 | +6% - | +7% | 161.2 | 135.2 | +19% | +19% | |
| Asia & RoW | 171.1 | 146.4 | +17% | +12% | 78.2 | 64.0 | +22% | +22% ========================================================================================================================================================================= | 153.7 | 128.7 | +19% | +15% | 312.2 | 277.1 | +13% | +9% | |
| Americas | 53.5 | 45.8 | +17% | +9% - | 30.0 | 27.0 | +11% | +6% | 75.7 | 65.4 | +16% | +10% | 104.7 | 90.2 | +16% | +11% | |
| Total Revenues | 378.5 | 332.0 | +14% - | +11% | 191.7 | 161.5 | +18% - | 425.0 | 379.1 | +70% - | 632.4 | 547.5 | +16% | +13% |
| Q1 | YoY growth | Q2 | Q3 Q3 | Q4 | YoY growth | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Eur m | 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX 2019 2018 Rep. ex FX | |||||||||||||||
| Retail | 29.4 256.2 +14% +10% 145.6 120.6 +2% 25.4 220.4 +15% +12% 56.5 48.2 +15% +13% | |||||||||||||||
| Wholesale | 87.1 75.8 115% 17.7% 14.1% 40.9 1+13% 110% 17.7 1587 11.7 1587 1 16% 1 16% 1 16% 1 168.2 | +13% +10% | ||||||||||||||
| Total Revenues |
2019 QUARTERLY REVENUE BREAKDOWN BY REGION AND CHANNEL - YTD
| Q1 | YoY growth | H1 | YoY growth | 9M | YoY growth | FY | YoY growth | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Eur m | 2019 | 2018 | Rep. | ex FX | 2019 | 2018 | Rep. | ex FX | 2019 2018 | Rep. | ex FX | 2019 - | 2018 | Rep. | ex FX | ||
| ltaly | 45.8 | 43.3 | +6% | +6% | 68.5 | 63.3 | +8% - | +8% = ======================================================================================================================================================================== | 130.6 | 122.8 | +6% - | +6% | 185.0 | 167.8 | +10% | +10% | |
| EMEA (excl. Italy) | 108.1 | 96.5 | +12% | +12% | 168.9 | 147.0 | +15% | +15% - | 302.4 | 272.5 | +11% - | +11% | 463.5 | 407.6 | +14% | +14% | |
| Asia & RoW | 146.4 | +17% | +12% | 249.3 | 210.4 | +18% | +15% ------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 403.1 | 339.1 | +19% | +15% | 715.2 | 616.1 | +16% | +13% | ||
| Americas | 53.5 | 45.8 | +17% | +9% | 83.6 | 72.8 | +15% | +8% ========================================================================================================================================================================== | 159.3 | 138.3 | +15% | +10% - | 263.9 | 228.5 | +16% | +11% | |
| Total Revenues | 332.0 | +14% | +11% - | 570.2 | +16% | +13% | +12% | +15% | +13% |
| Q1 | YoY growth | H1 | FY | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Eur m | 2019 2018 Rep. ex.FX 2019 2018 Rep. ex.FX 2019 2018 Rep. ex.FX 2019 2018 Rep. ex.FX | |||||||||||||||
| Retail | 29.4 256.2 +14% +10% 437.1 376.8 +13% 690.4 | |||||||||||||||
| Wholesale | 87.1 75.8 145% +13% 116.7 +14% +12% 304.9 27.4 +1% | |||||||||||||||
| Total Revenues |
SHAREHOLDING STRUCTURE, UPCOMING EVENTS, IR CONTACTS
SHAREHOLDING
- 22.5% Ruffini Partecipazioni S.r.l. =
- 5.0% BlackRock Inc.
- 3.3% Invesco Ltd.
- Morgan Stanley Asia Limited 3.0%
- 2.2% Treasury Shares
- 64.0% Market
Source: Consob, Moncler Last update: 22 April 2020 2020 Upcoming Events
11 June 2020 Annual Shareholders' Meeting 27 July 2020 H1 2020 Financial results 22 October 2020 9M 2020 Interim management statement
Investor Relations Team [email protected] Paola Durante Strategic Planning, Intelligence and IR Director [email protected] Alice Poggioli Investor Relations Manager
Carlotta Fiorani Investor Relations [email protected]
This presentation is being furnished to you solely for your information and may not be reproduced or redistributed to any other person.
This presentation might contain forward-looking statements that reflect the Company's management's current views with respect to future events and financial and operational performance of the Company and its subsidiaries. These forward-looking statements are based on Moncler's current expectations about future events. Because these forward-looking statements are subject to risks and uncertainties, actual future results or performance may differ materially from those expressed in or implied by these statements due to any number of different factors, many of which are beyond the ability of Moncler to control or estimate. You are undue reliance on the forward-looking statements contained herein, which are made only as of this presentation. Moncler does not undertake any obligation to publicly release any updates or revisions to any forward-looking statements to reflect events or circumstances after the date of this presentation.
Any reference to past performance or trends or activities of Moncler shall not be taken as a representation or indication that such performance, trends or activities will continue in the future.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy the Group's securities, nor shall the document form the basis of or be relied on in connection with any contract or investment decision relating thereto, or constitute a recommendation regarding the securities of Moncler.
Moncler's securities referred to in this document have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Luciano Santel, the Manager in charge of preparing the corporate accounting documents, declares that, pursuant to art. 154-bis, paragraph 2, of the Legislative Decree no. 58 of February 24, 1998, the accounting information contained herein correspond to document results, books and accounting records.