- PRESENTATION -
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.
- INVESTMENT CASE -
What was the transformation objective?
The aim was to establish Moncler as the global leader in the luxury clothing sector, while seizing the full potential of international growth opportunities.
How is Eurazeo assisting Moncler in its transformation?
Eurazeo is supporting the Group in its geographical diversification strategy, which remains a key component of the company’s growth, alongside the development of its store network to strengthen its brand image.
Major strategic decisions include the decision to separate the sportswear activity from the Moncler brand, enabling the Group to focus on its core business, the decision to diversify the product range and the decision to takeover certain activities initially developed with local partners, such as in China.Moncler is continuing its ascension as demonstrated by its successful IPO in December 2013.
- PERFORMANCES & PERSPECTIVES -
The very significant increase in Moncler Group revenue in 2012 (+22%) breaks down into a +35% increase to €489 million for the Moncler brand which now represents 78% of sales compared to 70% in 2011, and a 10% decline in sportswear revenue, a non-strategic Group business (22% of sales). Based on a constant number of stores , Moncler brand sales rose by +18% in 2012.
Moncler reported very strong growth in its earnings due to the sustained development of its network, the increasing predominance of the Moncler brand and the Group’s international expansion with a doubling of retail sales in Asia. These three elements resulted in an improved Group profitability: EBITDA therefore rose by +39% to €170 million in 2012, i.e. a 320 basis point improvement in EBITDA margin to 27.0%.
To support this growth, in 2012 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.