MONRF - Moncler: Healthy Underlying Demand To Support A Strong FY 2024 Performance

2024-04-11 22:32:07 ET

Summary

• Moncler reported strong financial results, with revenue growth of 14.7% and an improved gross margin.
• The company is expected to continue seeing double-digit growth and maintain a net cash position.
• Moncler's performance in China and other Asian countries, as well as its expansion into new customer segments, provides growth opportunities.

Summary

Moncler ( MONRF ) is a luxury brand retailer that serves a global customer base. The products they offer include multiple categories, such as outerwear, shoes, accessories, etc., for both women and men. Currently, MONC has two key brands: Stone Island and Moncler. The financial contribution between the two differs mainly in the split between DTC (direct to consumer) and wholesale. Stone Island is more weighted towards wholesale, while Moncler is weighted towards DTC. I am recommending a buy rating for MONC as I expect performance ahead to follow the same strength seen in FY23/4Q23....

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