Moncler Earnings: Strong Sales Growth Is Ahead of Peers; Good Operating Leverage

We increase our fair value to EUR 47.50 for narrow-moat Moncler after it reported strong first-half results and we adjust our full-year assumptions slightly upward. Moncler fared better than most previously reported peers in the second quarter, with 32% constant-currency growth (21% for the LVMH fashion and leather division and 24% for Richemont’s Jewellery Maisons) due to a very strong performance in Asia with 55% constant-currency growth (30%-40% for previously reported peers) and Europe (30% versus a 10%-20% range for peers). Revenue in the Americas declined 5% for the brand due to the Nordstrom business conversion from wholesale; excluding this impact on growth in the Americas would have resulted in a positive low single digit in the quarter, which is ahead of peers who mostly declined in this market. Sales to Chinese consumers globally are over 50% higher than in 2021, unaffected by lockdowns.