Moncler reports loss as second-quarter sales plunge


2/2
© Reuters. The logo of Moncler is seen in a shop in downtown Rome

2/2

MILAN (Reuters) – Italian fashion group Moncler (MI:) reported a first-half operating loss for the first time in its history on Monday as a drop in sales caused by the coronavirus crisis lockdowns accelerated sharply in the second quarter.

The group did not provide a forecast for the rest of the year but said it expected no immediate relief from the crisis, which has hit revenues across the luxury goods industry.

“It is difficult to know how the second half of the year will evolve,” Chairman and CEO Remo Ruffini said in a statement. “I believe, however, that what we are facing will continue to have a significant impact for several months on, at least in some parts of the world.”

With shoppers confined at home during lockdowns in Moncler’s main markets, sales in the second quarter were down by around 50%, in line with analysts’ estimates, following an 18% drop in the first quarter.

Earnings before interest and taxes (EBIT) in the first half turned negative to produce a loss of 35.5 million euros, after writedowns of 30 million euros to cover unsold inventory from Moncler’s Spring/Summer range.

That compared with a first-half profit of 102.6 million euros last year.

Moncler, which made its name with trademark puffer jackets, has become one of best performing luxury groups in the industry after a makeover under Ruffini. But in April it scrapped its 2019 dividend after the first-quarter sales drop.

Earlier on Monday, Moncler announced it would bring its e-commerce channel in-house with a view to double the share of its online business over the next three years at a time when online sales are increasingly important due to uncertainties caused by the virus.

READ  Amazon starts recruiting and leases office for Virginia 'HQ2'

In the first half of 2020, e-commerce continued to grow in double-digit percentages, Moncler said. In 2019, online sales accounted for around 10% of the total, according to analysts.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here