Moncler S p A : H1 2022 Financial Results Transcript

Moncler S.p.A.

"H1 2022 Financial Results Conference Call"

Wednesday, July 27 2022, 07:00 PM

MODERATORS: REMO RUFFINI, CHAIRMAN AND CHIEF EXECUTIVE OFFICER

ROBERTO EGGS, CHIEF BUSINESS STRATEGY AND GLOBAL

MARKET OFFICER

GINO FISANOTTI, MONCLER CHIEF BRAND OFFICER

LUCIANO SANTEL, CHIEF CORPORATE AND SUPPLY OFFICER

ALICE POGGIOLI, INVESTOR RELATIONS SENIOR MANAGER

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OPERATOR:Good evening. This is the Chorus Call conference operator. Welcome, and thank you for joining the Moncler First Half 2022 Financial Results Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be the opportunity to ask questions. Should anyone need assistance during the conference call, they may signal it to an operator by pressing "*" and "0" on their telephone.

At this time, I would like to turn the conference over to Ms. Alice Poggioli, Investor Relations Senior Manager. Please go ahead madam.

ALICE POGGIOLI: Thank you, operator. Good evening, everyone and thank you for joining our call today on Moncler Group's First Half 2022 Financial Results. Let me introduce you the speakers on today's call: our Chairman and CEO, Remo Ruffini, Roberto Eggs, Chief Business Strategy and Global Market Officer, Gino Fisanotti, Moncler Chief Brand Officer and Luciano Santel, Chief Corporate and Supply Officer.

Before starting the presentation, I need to remind you that this presentation may contain certain statements that are neither reported financial results, nor other historical information. Any forward-looking statements are based on Group current expectations and projections about future events. By their nature, forward-looking statements are subject to risks, uncertainties and other factors that could cause results to differ even materially from those expressed in or implied by these statements, many of which are beyond the ability of the Group to control or estimate.

Let me also highlight that given the nature of our business, interim results can be influenced by seasonal effects and therefore cannot be taken as a proxy for full year trends or results. Finally, I remind you that the press has been invited to participate to this conference in a listen-only mode.

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Let me now hand over to our Chairman and CEO, Mr. Remo Ruffini.

REMO RUFFINI: Good evening, everyone and thank you for joining the Moncler Group First Half Results Conference Call. We have closed the first half of the year with very good results. In the first 6 months, Group revenues rose by 46% and accelerated in Q2 in almost all regions versus pre-pandemic levels. We see very good performances in Europe. Japan performance is also strong and Korea remains best-in-class.

By the way, I just came back from a business trip to Korea and Japan and I saw first-hand how vibrant these markets are. China, which has suffered from lockdowns in April and May, accelerated significantly in June. Looking at our operating performance, first half EBIT reached € 180 million with an operating margin close to 20%. And we have delivered a solid performance in all economic and financial KPIs. These results are even more meaningful, if we consider that the first 6 months have been marked by strong instability, linked to the ongoing conflict in Ukraine, Covid restrictions in China, worldwide pressure on logistics and strong inflation headwinds.

Moncler keeps driving strong brand engagement in communities around the globe. The launch of the Grenoble Day-namic collection was particularly well received and showed Grenoble potential to become relevant for the luxury outdoors all year around. In May, we held our Moncler retail summit, the first in-person event since a long time. I found all store managers very motivated, full of energy and passion and focused on the role they play in shaping a unique customer experience.

Stone Island is taking direct control of its markets. Following the establishment of the Korean joint venture, we are now going to directly

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manage the DTC business in the UK and in a few weeks we will set up a joint venture in Japan.

As you know, I strongly believe in having a direct relationship with the market, without filters. We are approaching two important milestones: 70 years of Moncler and 40 years of Stone Island. Anniversaries are always a good time to take stock of what we have achieved so far and what can be improved in the future. We are going to celebrate our history, but we are also planning new projects. As I always say, there is no future without a past, but there is no past that is enough to ensure a bright future.

Moncler has always been and will continue to be an ever-evolving brand, searching the extraordinary while remaining true to its DNA. Over the past 4 years, Moncler Genius has moved us to higher peaks, and will continue to play a key role in supporting the brand towards a new and inspiring concept of luxury.

Stone Island in its history has always been proudly faithful to its brand and product purity, and is now making stronger its relations with subcultures and its communities, accelerating an already great momentum.

We live in the era of uncertainty where companies need to know how to play for the long game, and be always prepared to face new challenges. This means that flexibility is a must. I am confident that we are ready to face the most important part of the year for us, leveraging on our operational flexibility and solid brands' vision with no shortcuts, making our Group stronger and always working hard to ensure the best days are the ones ahead of us.

And now, let me hand over to Gino, Roberto and Luciano for an additional update and for your questions. Thank you very much.

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GINO FISANOTTI: Hi, good evening everyone. I will kick-off this session with the brand highlights. I would say this quarter is traditionally not the strongest for the brand, however this was a very important one for us for few reasons. Firstly, we spent a lot of efforts and time to focus on optimizing and making our brand investments more efficient, especially on the performance marketing side, as we get ready for the next 18 months. It was also a big opportunity to start becoming an all year around brand, and that's also why we were trying to be more efficient, testing and learning a lot about our summer season in Q2. And then, secondly, I think from the first half of this year we were starting to report against the 3 dimensions of the brand. So we will showcase the efforts we are making, making sure that we drive Moncler Collections, Moncler Grenoble and Moncler Genius equally all year around.

So, having said that, I want to start with few things on the brand side. The first one is regarding the statement we made in support of women's rights. I think we were one of the very first brands, not even luxury brands, one of the very first brands around the globe, to have a strong and clear point of view about something that we believe is fundamental. And that was not only important in terms of the statement outside, but also helping our own employees base and supporting them, especially in the US.

Then, secondly, we worked in partnership with Daniel Arsham and the Lewis Hamilton Foundation during the Monaco Formula One race. We started with a small project, but then we gained a strong PR coverage and consumer reaction to this, which was really good to see.

Then, last time we talked about the launch of our perfume especially in our retail doors, and since 3 weeks, we added the launch of our perfume to moncler.com and the performance has been really strong, led by the EMEA market.

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