Moncler

Date of investissement June 2011
% held 19.7%
Total investment € 305 million(1)
Acquisition multiple ~ 9.8 x 2011 EBITDA
Vendors Remo Ruffini, Carlyle, Mittel(2)
Governance 3 seats on a 11-member Board of Directors

(1) Amount invested directly and through Eurazeo Partners
(2) retaining 32%, 18% and 5% of capital, respectively

Luxury clothing and accessories

Moncler, creator of the original down jacket, designs and distributes upscale clothing and accessories for men, women and children. With the support of its leading shareholder, Eurazeo, Moncler has transformed itself to expand the brand’s prestige and reputation worldwide, and through its strategy occupies a prominent position in the luxury goods segment. At the end of 2012, Moncler had 83 directly owned stores* and more than 1,900 wholescale doors** worldwide, thus guaranteeing a firm international foothold.

* Moncler brand only.

 

What is the transformation objective?

To establish Moncler as a leading luxury clothing brand worldwide. Eurazeo will contribute by supporting the company in reinforcing its teams and seizing potential opportunities for international growth.

How does Eurazeo support Moncler in its transformation?

Eurazeo supports the strategy of the company: continued geographic expansion (particularly in China and the U.S.), development of its own sales force by opening new stores in prime locations and through a selective reduction in the number of multi-brand retailers in order to strengthen Moncler’s image and sustain profitability, launching online sales, adding new products to its collections and expanding the scope and impact of its spring/summer collections. The goal is to capitalize on the growing recognition of Moncler as a global luxury brand.

2013 Revenues €581 million, + 19%
EBITDA €192 million, + 19%
   

 

2013 Performance

Following the sale of the Sportswear division, preliminary reported earnings solely concern the Moncler brand. In 2013, Moncler enjoyed another year of sustained earnings growth, driven by continued dynamic sales, on a constant number of stores basis, and the
expansion of its store network, particularly internationally.
Revenue totaled €580.6 million in 2013, up 19% on a reported basis (25% at constant exchange rates), The store network generated 57% of consolidated sales, compared with 51% in 2012, up 33% (41% at constant exchange rates). At constant exchange rates and on a likefor- like basis, sales increased 14% in 2013. Wholesale sales increased 4% (7% at constant exchange rates), driven by international markets. Moncler opened 24 new retail monobrand stores (DOS), including 9 in the fourth quarter of 2013. At the end of December 2013, Moncler had a network of 107 DOS and 28 wholesale monobrand stores. Moncler has already secured the opening of 20 new stores for 2014.
EBITDA increased to €191.7 million in 2013 (€161.5 million in 2012), representing an EBITDA margin stable at 33.0%. The EBITDA/ cash flow conversion rate remains very high, enabling a €51 million reduction in net debt to €178.2 million at the end of 2013. Leverage fell to 0.93x EBITDA in 2013 compared with 1.42x in 2012.


Outlook

To support this growth, the company strengthened the management team with the appointment of a manager for the United States, a manager for Japan and recruited a new manager for online activities, sales and communications. Product diversification continued in knitwear, footwear and handbags based on co-branding operations with recognized partners.