MONRY - Moncler: Solid Start To The Year
2024-04-10 13:39:25 ET
Summary
- The CEO is positive for 2024, thanks to new stores and the Grenoble collection. In addition, we should consider a mid-single-digit price uplift.
- Here at the Lab, we believe Moncler is set to outperform in the summer collection and increase store sales density.
- A rock solid balance sheet and Stone Island turnaround story make Moncler a buy.
Today, we are back to comment on Moncler ( MONRF ). In our last update, we emphasized an Excessive De-Rating compared to the industry luxury sector average, and we believe it was a good momentum to re-enter. Our buy rating was supported by 1) a solid execution, 2) Moncler acquisition upside with turnaround profitability on Stone Island, and 3) the company's operating leverage. We also recommend checking our previous publication called Winter is Coming for our new readers. In numbers, we forecasted 2023 sales and EBIT margin of €2.93 billion and 29.8% with a year-end positive cash position of €1 billion. Following the FY 2023 results (Fig 1), we were very accurate, and Moncler almost reached our target price. Therefore, we changed our financial forecast by considering the latest company news and taking advantage of competitors' updates....
Moncler: Solid Start To The Year