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Good evening, this is the conference call conference operator. Welcome and thank you for joining the Moncler First Quarter 2026 Interim Management Statement Conference Call. As a reminder, all participants are in listen-only mode, and after the presentation there will be an opportunity to ask questions. Should anyone need assistance during the conference call, then they signal an operator by pressing star M0 on their telephone. At this time, I would like to turn the conference over to Ms. Elena Mariani, Group Strategic Planning and Investor Relations Director. Please go ahead, Madam.

Thank you, Operator, and thank you all for joining our call tonight. I will host this Interim Management Statement Call together with Luciano Santel, Chief Corporate and Supply Officer. I will start providing a brief overview of our results, and then Luciano and I will be happy to take your questions. Before starting, 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. So, starting with an overview of our Q1 results on page 3, I'm delighted to announce that as a group, we achieved revenues of €881 million, up 12% year-on-year at constant effects. and up 6% in reported terms, reflecting 6 percentage points of negative impact from currencies. These results reflect double-digit sales growth achieved at both brands. Moncler brand revenues of €767 million up 12% year-on-year at constant effects and Stone Island brand revenues of €114 million up 11% year-on-year at constant effects. Now, if you move to page four, we're going to briefly touch upon the key highlights related to the Montclair brand. This has been an amazing quarter for the brand, probably the best we have ever seen in terms of brand impact and engagement, particularly when it comes to Montclair Grenoble. Starting last December, we had embarked on an intense 100-day journey of storytelling and activations related to this brand dimension. We have started back then with the launch of Montclair-Renault's latest campaign and then in Q1 we unveiled the Fall-Winter 2026 collection in Aston within the Rocky Mountains during a unique two-day brand experience with the Montclair-Renault global community and during this experience we opened our second Montclair-Renault-only store in Aston after St. Moritz two years ago, so obviously the first Renault flagship in America. But this 100-day journey extended well beyond Aspen. As shown on page five, it included several other activations. Just after the Aspen event during Milan Session Week, we unveiled the Beyond Performance exhibit in Milan, an immersive experience on the Moncler-Renaud universe and identity in the Courtyard of Portraits Milano. Also importantly, we returned to the Winter Olympics for the first time since 1968. We co-created with Brazilian designer Oscar Matzabat the ceremonial uniform of Team Brazil. This was announced just 24 hours before the opening ceremony and it quickly became the most relevant news of the day for both the luxury fashion world and the sports industry. The uniform and the moment itself became an iconic image of the 2026 Winter Olympics and the impact on media and social media has been beyond any expectation on our side. We were also incredibly lucky to be represented at the Olympics by our Moncler Grenoble Global Ambassador, Lucas Pinheiro Brassen, who won the first ever Olympic gold medal for Brazil. I'm sure many of you had the chance to see these very emotional images from Lucas. And on the back of his incredible journey, we launched the South Star, a campaign to celebrate Lucas' fantastic achievements, but also his personal story and values. Together, all these initiatives delivered exceptional visibility and engagement, generating over six billion in potential global reach, 435 million in digital engagement, and over 3,200 press articles worldwide, making this the most impactful Montclair Grenoble brand chapter to date. But this quarter was not just about Montclair Grenoble. Moving to page six, you can see a selection of other brand highlights related to Montclair Collection and Montclair Genius. First, we launched the first ever spring-summer collection developed in collaboration with Rick Owens, marking an evolution of a creative partnership that was historically mainly and just focused on fall-winter. Second, we presented Moncler Collection Spring 2026, supported by a global campaign shot in Rome, featuring actors Francesco Sciana and Celeste Della Porta, which generated 182 million potential reach worldwide and 2 million global engagement just within the first 30 days. Finally, Moncler further expanded its footwear offering with the introduction of the new Trail Grip LP. This model represents the lightest technical sneaker developed by Moncler to date, supporting the continued evolution of our footwear pillar. Let's now move to Stone Island on page seven. Also for Stone, this was an incredibly eventful quarter marked by a series of initiatives that further reinforced the brand's positioning around community, research and innovation, and increased the visibility of the brand worldwide. From a product and innovation standpoint, Sun Island continued to push the boundaries of material research and fabrication with the launch of prototype research series nine, where for the first time Nictor became the subject of prototype experimentation. We also continued Stone Island's global partnership with Frieze returning to the Los Angeles edition of Frieze Focus and reaffirming the brand's longstanding commitment to supporting emerging galleries and artistic experimentation. As part of this initiative, the brand collaborated with American artist Jamal Cyrus on the latest iteration of its Frieze uniform t-shirt series. In parallel, Stone unveiled the next chapter of its community as a form of research project presenting the Spring-Summer 26th Collection. We further expanded the brand dialogue with its global community with this new chapter bringing together a varied group of individuals sharing Stone Island's values such as former football icon Paolo Malvini, an amazing brand ambassador whom you can see on the page. Finally, the quarter included the opening of a new flagship store in Naples on one of the city's most prominent streets, once again developed in collaboration with the Oma Amo Studio. And then for the occasion, Stone Island released a surprise, a short documentary exploring the unique relationship between the brand and the city of Naples. Talking about numbers, we're going to start with the Moncler brand on page 8. We're very happy to say that in the first quarter of the year, the brand grew by 12% at constant currencies. And looking first at the performance by geography, Asia was the best performing region, growing by 22%. All countries grew year on year in this quarter and improved sequentially compared to Q4. China and Korea in particular were very strong and outperformed the rest of the region. Overall, local consumption was positive, but it also registered very good tourist flows within the region. So both locals and tourists contributed positively to the growth of Asia. Growth was also good in the Americas region, which was up 7%. Here we continue to observe very solid growth in local consumption in the DTC channel, but the wholesale channel also registered a positive performance in the quarter. EMEA revenues instead were down 1%, underperforming the other regions. And here I would highlight two factors in particular that affected the performance of the region. First, still subdued tourism trends from customers overseas, while local consumption has been holding up. And second, a relatively weak performance of the online channel in the region. Looking at Moncler revenues by channel on page nine, we're very pleased to say that in Q1 Moncler, DTC revenues were up 14% at constant currencies. We have registered very good retail KPIs and positive traffic into the physical channel. So physical retail has continued to outperform the online channel, which instead remains a bit more subdued in the quarter, even if it has improved substantially versus Q4. Wholesale revenues were up 3% year on year, This was due to a good reception of our Spring Summer 2026 collection, which resulted in higher reorders. And it is also important to highlight that this positive performance in the wholesale channel was achieved despite the ongoing efforts to upgrade the quality of our distribution, given that in the quarter we have continued to optimize our third-classy network. Let me remind you that for fiscal year 2026, we continue to expect wholesale revenues for Montclair to get close to flattish, so no change in our yearly outlook for this channel. Moving now to Stone Island on page 10, Q1 revenues were up 11% for the brand, boosted by continued solid double-digit growth in the DTC channel. But looking specifically at the trends by region, Asia was the strongest region, up 25%. All the main countries registered strong double-digit growth. So I'm talking about Korea, Japan, China, and the rest of APAC as well. So very much a broad-based growth within this region. The Americas region was also up 24%. The region is still small for Sun Island, but it grew at a double-digit pace both in the DTC channel and in the wholesale channel, so very encouraging signs. In-year revenues were up 3%. Also here, both channels were positive. And when it comes to the single countries, what I can tell you is that Italy, the largest single country in the region, slightly outperformed the rest of India. Looking more specifically at Stone Island Trends by channel on page 11, the DPC channel, which is now representing the majority of sales, grew by a strong 17% in Q1. We were very pleased by the development of all the retail metrics, particularly given that this performance is entirely organic, with no contribution coming from new space. All regions were positive in this channel, but as I have just mentioned, Americas and Asia in particular outperformed. And also for Sun Island, the physical channel continued to outperform the online channel across all regions. Finally, in wholesale, revenues were up 4%. Even for Stone Island, we continue to be extremely selective with our third-party partners, so we're very happy to say that growth was driven by a positive reception of the spring-summer 2026 collection. In terms of fiscal year 2026 indication, also for Stone, our ambition for this channel is to get close to Flattish, with trends in the first half of the year expected to be better than those in the second half of the year. Last but not least, let's briefly look at our store network on page 12. As of 31st of March 2026, the network of Moncler Monobrand boutiques counted 295 directly operated stores, net-net unchanged compared with December 2025. However, I would like to stress again an important development during the quarter, which was the previously mentioned opening of our second Moncler Grenoble-only store in Aspen. in correspondence of the event we had at the end of January. A beautiful store, definitely one of a kind, as you can see on page 13. Looking at Stone, the network of monobrand stores counted 94 directly operated stores, a net decrease of one unit compared with last December. But also for Stone, I would like to flag the opening of our store in Naples, which I've just mentioned, and of which you can see some nice pictures on page 14. So we reached the end of the presentation. I will now hand it over to the operator for your questions. I kindly ask you as usual to speak to a maximum of two questions per person to give all participants the opportunity to ask questions. Operator, you can now open the Q&A line. Thank you.

Thank you. This is the conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch point telephone. To remove yourself from the question queue, please press star N2. Please pick up the receiver when asking questions. Anyone who has a question may press star N1 at this time. We will pause for a moment as participants are turning the queue. First question is from Melania Grippo, BNP Paribas.

Good evening, everyone. This is Maria Agrippo from BNP Paribas. I have two questions. I was curious... Thank you very much. The brand is doing particularly well. We do retail growing double digits for three quarters in a row. Could you please give us a sense of how it is going, let's say, more recently, let's say in April, and also how the two collections, Marina Sterlina and Ghost, are doing and what they represent on sales. Thank you.

Yes. Hi, Melania. About your first question, some feedback, honestly it's quite early, but I can tell you that the feedback is very good, very positive, not only from our customers, but like we say from everyone, because the campaign, as you may have seen, is very, very strong, very impactful. And so again, our expectations are relevant, sorry to say that, but not just in terms of Thank you very much. is very strong. About Grenoble, Melania, the sport was very good, was very good also because of everything we implemented, what Elena said before, I mean, the event in Aspen for sure was particularly impactful, but also the event in Milan and also the success we indirectly had with Lucas Bratton in the Olympics. and business-wise, I can tell you that the first quarter in Grenoble was particularly, particularly good.

One small thing, Melania, if you were making reference to Delivery 2 on the back of Gino's presentation in February, it's actually starting now and marketing will come mid-May, so too early to tell. Okay.

About Stone Island, Melania, let me comment Q1 first. which is the third quarter in a row. We report double-digit growth for Stone Island. And important highlight, of course, something I'm sure you saw, growth comes mostly from the DTC channel. And let me say that the totality, the entirety of that growth rate is organic only because there is no space that impacts the growth rate. So very happy about the current trend of Stone Island that is continuing, substantially continuing. Of course, April is just, we have just a couple of weeks behind us, so still very premature to get to any conclusion, but this positive trend is continuing in the first days of April.

Maybe one more thing about the selections which you have asked. I mean, the one that I would highlight as being the strongest among them is definitely Ghost. If you might remember, it was a very low single digit percentage of sales just a few years ago, and now it's approaching 10% of sales. So, very good results. Ghost, as a reminder, is the most elevated part of the collection, tone on tone. Very good reception so far, outgrowing the rest of the collection and contributing to the positive mix evolution of Sun Island.

Thank you. Thank you both.

Next question is from Analore Bismuth, HSBC.

Yes, hi, good evening, Elena and Luciano. Congratulations on a very strong Q1 performance. My first question is about, I was wondering about the I was wondering if you can help us to know what was the space contribution in Q1 and the split between space contribution and life for life. I know you don't break it down, but just assuming that it was about mid-single digit, it would mean that the life for life rebounded strongly in Q1 to high single digit, right? Is it fair and was it mostly volume-driven and with a bit of pricing? That's my first question. And my second question is the performance by cluster. It would be good to have an idea of the performance with the Chinese cluster and if you want both onshore and offshore and how does it compare with Q4? I know it's still early days, but is that strength continuing into Q2? Thank you very much.

Hi, Elora. Thank you for your question. of course we don't report like for like but I can tell you that the space contribution is not particularly relevant in Q1 I mean it's not particularly meaningful sorry in one quarter only but as a matter of fact is totally quite in line with our indication for the year end which is Thank you very much. on winter and spring, but back to the previous question from Melania, because Grenoble performed quite well, and as you know, Grenoble has a higher price than Montel Collection. Also, not only because of conversion, but also the UPT for Grenoble was quite good. So this is overall the picture about the Organica Grotta in the first quarter. Talking about the cluster, in this quarter, Chinese cluster was up double digit. Koreans and Japan close to double digit, slightly, slightly below 10. And Americans and Europeans still positive, single digit. So again, Chinese cluster still very strong, as much as in Q4. So, I mean, everything was good. All of the different nationalities were positive. Of course, the strongest was Chinese, but, I mean, all the other two Asian nationalities were very good as well.

Thank you. Next question is from Chris Huang, UBS.

Hello. Hi. Thanks for taking my questions. I'll stick to two. The first one, just to come back on the Montclair brand DTC, if I understood correctly, I think the previous commentary you commented on the start of Q2 was more Stone Island. So could you maybe clarify a little bit, in case I missed it, how has the mood of consumers started for you in the second quarter on the Montclair brand specifically? Secondly, on the Middle East, last week when we heard from some of your other peers in this sector report, they were calling out the Middle East impact somewhere between one to two percentage point. I know that you have a smaller direct exposure to the region for the Moncler brand, but are you able to perhaps help us a little bit better understanding The impact, direct but also indirect in terms of tourism. If you can give us some sense in terms of the numbers, headwinds, that would be extremely helpful. Thank you.

Okay, thank you, Chris. I mean, you're right, actually. I gave some indication about the first two weeks of second quarter about Stonehenge and not about Montclair because this was the question from Melania. If I Understood correctly. Anyway, talking about Montclair, let me start from Q1 to elaborate the current trend in the second quarter. Q1 generally was very good, unexpectedly, because of the different timing of the Chinese New Year. Second quarter was very, very strong. This was, let me say, fairly expected. Sorry, February, February. Elena, correct me. So January, very good. February, very, very strong for the same reason. Chinese New Year this year was in the second week of February. March, softer. Softer, first of all, because there was a significant decline in traffic coming from outside the region in Europe due to a decline in In flights, there are public numbers that have been reported by Global Blue that say that the tax-free spending in continental Europe in March dropped significantly after January and February, and also because of the current conflict in Iran. That, of course, Prevented some Asian people from coming, from coming, from flying to come to Europe. The beginning of the second quarter was in line with March, so quite uncertain. I mean, not softer than again January and February, but affected by the slowdown in tourism that is affecting mostly Europe. Talking about the Middle East, our business, as you correctly pointed out, the Middle East is less than 2%. Of course, that business is significantly down, but even the decline of that 2% is not impacting materially our overall business.

Maybe one small thing I wanted to flag, Chris, is that When you think about the shape of evolution of the first quarter, you also have to keep in mind that there is kind of a natural slowdown post the Chinese New Year, given that we were quite strong in China and with the Chinese cluster. You can absolutely expect that after a strong February, then you have a bit of a normalization in March. So this was the other factor to keep into account on top of what Luciano has mentioned. And then about the Middle Eastern, the only thing that I can add is that The cluster was down around 50% in March, but again, not a meaningful direct impact on the business, not as much as others. Then the second derivative effect, we will see, but the first one we have seen was more related to incoming tourism from overseas customers into Europe that was worse in March compared to the previous two months.

Thank you. Can I just follow up on that comment you made on I think most of the peers seem to be seeing a little bit of softening after Chinese New Year. So given that you did 14% in Q1, is it fair to assume that March is still trending in the range of high single digits?

Would you kindly stop for a second because we have a technical issue. Okay, no, your voice is back. So if you could just repeat your follow-up, that would be great.

Okay, Norris, I was saying that it makes sense that March was softening a little bit after Chinese New Year, given the timing of the event, but given that you did 14% and you won, is it fair to say that March was still in the range of high single digit or even double digit, any directional color you can give?

I can't give you this kind of precise number, Chris, I'm sorry. I can tell you that Marsha was positive but softer than the previous two Marsha. Okay, thank you.

Next question is from Natasha Bonnet, Morgan Stanley.

Hi, thank you very much for taking my questions and congratulations on the great set of results. I have two questions. The first, could you tell us what your exposure to tourism is in Europe, particularly in Q1 and how that differs versus the rest of the year? And then my second question is just on the margin. Is there anything to keep top of mind on the phasing of H1 versus H2 this year? I just know that last year your A&P was quite high in H1. It was 9.6%. So anything you could tell us that would be helpful. Thank you.

Sorry, Natasha. We couldn't hear you very well. So the first question was about tourism contribution to European sales, right?

Yes.

Yeah, okay. First, and the second one again, sorry, it was related to margin. Sorry, I couldn't hear you very well.

Sorry, on the margin, is there anything to keep top of mind on the phasing of H1 and H2 this year, given your AMP was 9.6% in H1 last year?

Okay, Natasha, thanks for your question. Starting from the second question about the Potential phasing and margin. What I can tell you is, of course, not about the margin, but I can tell you that I'm talking about AMP, advertising and promotion marketing. The timing between H1 and H2 this year is expected to be substantially in line with last year. So nothing materially different this year from last year. Talking about the impact of tourism in Europe is on a year end, I mean on the fiscal year, about 50-50. You know?

Yes, just to specify a little bit, 50-50 means 50% local, 50% tourists coming from outside of the region.

Yes, so when we talk about tourism... This is something important to clarify. Thank you, Elena. For everyone, when we talk about tourism, we consider only tourism from outside the region. Of course, we detect and we monitor also the tourism inside the region, but what is much more relevant for our business is the one from outside.

The only thing I would add, I mean, we don't really go into the specific details related to each quarter, but as always, I mean, it's true for last year and it's going to be hopefully possibly true also for this year. The first and fourth quarter are typically slightly higher than average in terms of exposure to locals. The second and third quarter are typically more exposed than average to tourism flows, something you've heard multiple times from us, but it's the typical seasonality you see in a year.

Next question is from Oriana Cardani in Teva San Paolo.

Yes, good evening. Thank you for taking my two questions. The first one is on the CapEx plan. Are there any investments impacted by events in the Middle East that could be postponed, or do you see no need to make changes to the investment plan due to this geopolitical contest? And my second question is on Forex. If you can give us an update on the expected Forex impact for this year. Thank you.

Okay, thank you, Oriana, for your question. About CAPEX impacted, I mean, CAPEX plan impacted by the suppression of Middle East, no, nothing, nothing relevant, honestly. I mean, lucky or unlucky, depending on the point of view, but we are still a very small business company. and also a business plan for Middle East. So nothing material at all.

The second was the impact from currencies.

Impact from currencies. Of course, the first quarter was quite high. I mean, as Elena pointed out, it was 6%. or the year-end based on our current visibility is below 4%, between 3% and 4% on the top line, of course.

Great. Thank you very much.

Next question is from Daria Nasler-Dayeva, Bank of America.

Hi. Congratulations on the super strong result. This is Daria from Bank of America and I have two questions. So an incredible showing in Asia. However, while Europe also improved sequentially compared to the previous quarter, America slowed a little bit while you also had the activation there in January. Is there anything to read into this or was there any one-offs that we should be considering for the remainder of the year in terms of American demand? That's my first question. And my second question is, could you please help us understand what the Stone Island acceleration to this extent means for margins? Should we expect this to become quite meaningfully accretive compared to the past couple of years if we think about the profitability bridge? Thank you.

Hi, Daria. About your first question, I mean, first of all, we are happy about our performance in the U.S. I don't know if your question was more related to To something that considering the event we held in Aspen, we should have expected better than what we reported. But honestly, I think that the number we reported was good, was very good. Of course, you know that, I mean, this company in the US, I mean, as everyone knows, I'm sure you do, is still under-penetrated in the US. And, I mean, this under-penetration depends... Also on brand awareness that in the US, in North America, is still lower, not as strong as in other regions. And let me say that not in the US, everywhere, because in the main cities where we have a strong footprint, like New York, and not only, the brand awareness is good, is very strong. It is still weaker in, let me say, minor cities where we and many more. We are even more intentional with the two big events, Aspen and the new opening New York Fifth Avenue. Overall, nothing negative, nothing negative at all about the demand for our brand. Great expectations for sure, but I mean it will be a long journey and it will take some time, but we are very confident. About Stone Island, I mean I can tell you something that for you as an analyst, Gino Fisanotti, Elena Piccinini is not, DTC is not relevant as much as Montclair, but still 50% is quite important. So any organic growth in the DTC business delivers stronger margins. Having said that, honestly, I mean, it is quite premature to get to any Thank you very much. and for sure I mean that it will be maybe less dilutive than it was in the past couple of years.

Thank you. Next question is from Thomas Chauvet, CT. Good evening Luciano and Elena.

Two questions please. The first one on the store network, there were no openings at on a net basis, as you said, Elena, that drove Mick Simrodici's space contribution, I guess, from last year's opening. When it comes to this year's openings, can you remind us the saving of the flagship in New York, any other major openings in China or Asia for the remainder of the year that you may want to anticipate, given the stronger rain momentum in the region? Secondly, on gross margin, I know you'll update us, Luciano, on it from profit in July, but can you perhaps comment on the tailwind you're expecting in the first half in particular, so you have a return to mid-high center digit volume growth in Q1? OAD, Channel Mix, Massive Tailwind, Geo Mix, possibly any other headwinds or maybe tailwinds we should be aware of for H1 and for you. And just a clarification, when you talked, Luciano, about April was in line with March, was it a comment for the Montclair Brain DTC overall or was it just a China comment? Thank you.

Yes, Thomas, thank you for your question. About your last question, the trend in April, I just commented, was about DTC. The first comment, the first question we received from Elena was about Stone Island. The second comment I made from another question was about Montclair, but still DTC only, if this was your question.

Okay, correct, okay.

Gross margin, gross margin, evolution. Gross margin, not operative margin, correct, Thomas?

Yes, gross margin, that's correct.

Material difference between Q1 and Q2? Honestly, as always, we don't have significant differences in gross margin from Q1 to Q2. We may have, I mean, we have evidently significant differences in operating margins, but I'm sure you know very well that. So I'm not sure if this was your question or if I missed something.

So Luciano, my question was more about the tailwinds to gross margin in the first half. You have a lot of tailwinds with volume growth, with channel mix, with Asia outperforming. Is there anything on the balance as tailwinds that we should be aware of? I see consensus gross margin for each one in three years more or less flat and it seems like you're off to a very strong start to support gross margin expansion this year.

The factors that may impact gross margin are, yes, channel mix, but again, you know that the majority of the space increase in our DTC channel is expected in the second half of the year. So, honestly, between Q1 and Q2, from this point of view, I don't see any material impact. There might be an impact here. On markets, because in some markets due to the price gap, we have a slightly higher or lower gross margin, but not particularly relevant. So again, I don't see any tailwind on gross margin. Of course, the only tailwind I don't see, but I mean, based on the result of the first quarter, if This result should continue in the second quarter, would be on the operating margin. But again, on the gross margin, again, I don't see any fact that may have a material impact on gross margin.

And maybe, Soma, when it comes to the channel mix, as always, if there will be an impact on the channel mix, This year, it is typically then compensated by a proportion of increase in the selling expenses. And so, you know, anything that might come, if the gross margin is going to be up slightly this year because of the channel mix, we expect it to be compensated. So, if your question was meant to see if there was a little bit of margin applied, that wouldn't happen because of these factors. And then I think you had a question about the store openings for the rest of the year. Sorry, we're repeating this because your line wasn't totally clear.

Store opening for the next of the year, I mean overall we expect a number of stores overall, including stores that have already been opened in line with last year in the region of 12, 13, 14 new stores. Many stores will be opened in America, of course, the Green Lobster in Aspen already opened, the store in New York, Fifth Avenue, needless to remind you, and some other stores in America, in California, in Valley Fair, in Dallas, and other, I mean, what I call wrongly, minor cities, but minor, let me say, for the brand, because... Our presence in some cities is still, let me say, quite shy. These are cities for hosting, for example. We are testing due to the project we have for that market. We don't have many openings in China, even if, of course, that market is doing very well. Some some openings in Asia Pacific, in the South Pacific. These are more or less the openings we plan for this year, tomorrow.

And as a reminder for Stone Island, on a net-net basis, we do not expect to have openings. Actually, we are probably going to see some net closures by the end of the year, low single-digit net closures.

Thank you.

Next question is from Carol Mario Barclay.

Hi, yes, good evening. Two questions for me as well. The first one is on spring-summer. Can you come back here on your ambition for the spring-summer collection? I think you mentioned that you have been more intentional about spring-summer for the first time. So when you think of products, which one are you pushing in terms of family of products? And then when you think about the weight of Q1, Q2, et cetera, the quarterly growth, of course, Q1 and Q4 have been the biggest quarter at Montclair. Do you expect a change going forward as you're trying to push a bit more at the spring-summer collection? That's the first question. And the second question is just around the Grenoble store that you opened in Aspen earlier this year. So is the store here performing in line with your expectations in terms of retail metrics? So are they similar to the one, of course, in Switzerland, St. Maurice, for instance? And can you also remind us how we should think about store opening for Grenoble in the future? Thank you.

Yes, Carole, about your first question, our expectations, as I said before, are mostly brand expectations. We want, we aim... to make Montclair an all year round brand. Of course, still protecting our DNA that is based on winter, mountain, cold, but we see opportunities still to protect the identity of the brand to become more and more relevant in spring and summer. This will be a long journey, so our expectations are mostly brand expectations. Also business expectations, but not something we expect to see and to deliver overnight. So of course it will be a long journey. I hope we can see some business results this year, but again this is not our most important goal. The other question was about Grenoble. Ah yes, Grenoble. Yes, we opened the store in Aspen that is performing, let me say, totally in line with our plan. Of course, our plan was and still is to have two stores in Aspen as we have two stores that are both doing quite well in St. Moritz. The store, after the opening, the few days after the opening... were the days of the event, so the store did particularly strongly, thanks to the traffic of people invited for the event, our best clients, that bought the current collection, placed orders for the next collection of the event, but again, forget the first few days, the store is doing well. is doing quite well, so we are very happy about that opening. Sorry, the other question was about...

The weight of Q1 and Q4 versus Q2 and Q3, whether we should expect a change or...

The weight of Q1 and Q4, of course, is extremely more important than the Q2 and Q3. Of course, our goal... is to decrease this gap between Q1, Q4 and Q2, Q3 and for this reason again we are as I said before we are this year more than ever very intentional in developing this identity still leveraging on what made the identity of the brand. Of course the current collection We are featuring in our stores and in the campaign right now is based on lightness and layering but still maintaining and protecting the codes of the brand. So expectation without giving numbers, a curl because they would be totally meaningless but for sure we expect over the time, second quarter, third quarter to become more relevant and to decrease the gap between the other two courses.

And Carol, just to contextualize, it's not an expectation on 2026. This is really like a medium to long-term journey. As you know, we want to increase the weight of spring-summer step by step. We did already in the past few years, even if it wasn't maybe 100% visible, but the weight of spring-summer versus for winter in terms of collection has increased one percentage point per annum over the past few years. This comment is really like a medium-term ambition that we have, so you shouldn't read anything into 2026. And also, as you know, there is, you know, part of this that can be controlled or pushed by us. Then there is also the external environment that needs to be taken into account, the tourist flows, you know, the weight of tourism in Q2, Q3. So there are several factors that can come into play. Obviously over the medium to long term, we all hope to see this evolution. Thank you.

Next question is from Charles Scotti Kepler.

Good evening, thank you for taking my questions. I have two. My first question relates to EMEA, where growth has been relatively weak since the second half of 24. What do you think explains this? Is it solely due to weaker tourism? And if so, could you provide more details on the trends among the local customers? And do you believe the brand in EMEA is now, to some extent, a bit more mature and what levers could be used to re-accelerate growth? And my second question relates to the very impressive acceleration of Moncler in APAC. The environment in China seems to be improving, but your performance improvement goes well beyond what we have seen from your peers. How do you explain this? Have you implemented any specific corrective measures or initiatives that could extend this regain momentum? Thank you.

Hi Charles, about your first question, I don't believe at all that we can talk about some kind of maturity of the brand in Europe. I think that I would not talk about weakness, but for sure EMEA is performing less than Asian countries, for sure. And this is mostly, let me say, totally due to the decline in tourism, specifically talking about Q1. And as I said before, in Q1 there was a strong decline in tourism numbers. Thank you very much. Thank you very much. Thank you very much. and I'm sure you know, is very strong for several different reasons and even when in China problems were bigger than what they are now, our business was quite good. I'm not sure that the problems in China are over, honestly, because I mean the problems demand, problems associated with the demand that depend on the available income that depend on the real estate challenges that is lasting more than expected I don't think that all these problems are over but for sure we see more vibe in China than in the past but again still too early to Thank you very much. Next question is from Chris Gao, CLSA.

Hi management, thanks for the opportunity and congrats on the great results in Asia operational investment bearing fruit. So the first one is on the Stone Island. Just now you commented on the volume mix pricing contribution for Montclair Brands growth and how about Stone Island to see volume mix ASP contribution to the 1Q growth look like. and also just want to understand more about it. What does this brand do right to drive the notable gain of usability during this quarter? Definitely we've seen the notable market share gain. So where is the share gain coming from? And we also want to understand more clarity if possible on the mid-term target of Stone Island scale and the margin profile. So this is the first question. The second question is a more top-down question about the pricing architecture. So with such a strong design ability seen on both Montclair and Stone Island, do you have any further update on Montclair and Stone Island's pricing architecture outlook in the mid-term? Because we want to understand more about the mid-term upside on the mid-side and the margins from the two brands. Thank you.

Yes, hi, Chris and Martha. Your first question. The first question about volume mix, I can tell you that the organic growth implied a significant growth of volumes. Looking at retail metrics, I can tell you that last year when Sun Island started doing very well in Q3, did very well, but with standing in negative traffic. So the business was totally driven by two little metrics, every selling price and the conversion. Every selling price was because, I mean, we changed the product architecture, the collection architecture of Stone Island, as you know, investing more and more in outdoor and indoor that have a higher price point. but what was very positive was conversion rate because even if less people were coming to visit the store, the majority, not the majority but I mean an increasing percent of people coming to visit the store converted into sales, into business. Long story short, at the end of the year traffic was still negative but close to flat. In the first quarter of the year, Also traffic, February and March, generally less, but February and March traffic was positive. So all the retail metrics were positive, traffic, conversion rate still very strong, and average selling price. Your question, which brand or where are we taking market share from? The very simple answer is I don't know, but what I can tell you is that for sure we see a positive brand momentum. That is something that I can't tell you we did expect, but I can tell you for sure that this is the result of a strategy we implemented, of a product, of a collection strategy We implemented the day after the acquisition that was about investing in the product categories that made the origin and the identity of the brand since its inception, that are outerwear and knitwear. The brand was doing very well at the time of the acquisition. Thank you very much. and in fact for a couple of years the business was not positive. We lost most, many of aspirational customers that were attracted by the logo and by the entry price categories but at the end for the first time for the full winter 2025 collection we saw a collection that was not totally but totally most in line with our expectations. So the results were not expected but strongly hoped by the management team. So this is the long story. Sorry, not particularly short, but I hope that I made myself clear. About the price architecture for Stone Island, it is exactly what I just said. So keep investing in these categories, but and without forgetting the entry price categories because I think there is something more and something better we can do in the entry price categories but still investing in the brand coats of Stone Island and brand coats are material research. Material research is mostly about outerwear but also knitwear. Talking about Montclair, you know that I mean The long story of our price architecture over the past 10 years. We started with the classic down jacket that is still our best seller category, but we invested more and more in high-end products within the outerwear category and also in knitwear. And so this has been the history of the brand over the past 10-15 years. and this is something that we want to continue. I mean, right now our core business is in the price point between $1,500 and $2,500 for Montclair. But we see opportunities also with our customer base. Without recruiting new customers, we see opportunities to increase this price range over the $2,500. Of course, it's something that we are implementing step by step. It is a long journey. It's not something that we can expect to achieve overnight. But this is our strategy. Of course, still protecting the entry price categories. Of course, entry price categories for Montclair and talking about Ottawa is still higher than 1,000 euros. But we see opportunities also in that price point. I hope I answered your question. Chris?

Yes, it is super clear.

Thank you very much. Go right again. Next question is from James Ripnich, Jefferies.

Good evening, Luciano and Elena. I'm really following up on Charles's question around the Chinese cluster. It looks like the Chinese cluster was probably high teens, perhaps 20% up for you in Q1. A couple of questions then. First of all, what was the Chinese cluster growth last year for the whole of the year for you? And perhaps you can share with us and what you've done differently in China in this Q1 and especially in the transition into spring-summer in the early stages of that. And it might be that my calculation is completely wrong, so please do correct me if that's the case.

Hi, James. Let me see if I understand your question about the Chinese cluster. I mean, as I said, The growth rate was double digit, so I mean this is what it said and this is what I can confirm. I don't know if your question was about how much the Chinese cluster represents

No, I think you asked about last year's performance, right?

Yeah, just to get a context, given that it seems this is the only cluster that was double-digit in Q1, it must be a big double-digit, hence my IT is 20.

No, no, no. We don't go into such detail. I mean, we mentioned that also the other nationalities were pretty strong, particularly Koreans and Japanese. And when it comes to last year, it was up low double digit in Q1, then it was more like flattish in Q2, single digit up in Q3, and then it was double digit in Q4, always sort of low double digit. So this was the evolution of 2025 in terms of cluster. but I wouldn't overestimate the growth in Q1 given that it was a pretty broad-based growth, the one that we have seen. Don't forget there are also many other nationalities that we don't comment that are other EMEA clusters, other Asian clusters. So I don't know if this helps, but we wouldn't go into that much detail.

Of course, thank you. Yeah, sorry, Luciano.

Okay, did we answer your question or...

Yes, I guess in terms of the specifics of the outperformance of the Chinese cluster relative to others, large ones, but I wondered whether you've done anything different in terms of assortment product and anything specifically that you feel resonated especially with that specific cluster domestically?

James, nothing special for China. but I mean a lot special for the brand you know and this is something this is not a joke what I keep saying is that the brand is very strong in China and as a result of this strength anytime we do something special the reaction in China is and with the Chinese customers is stronger and also faster quicker than in other regions so considering everything we did in Q1 I think that this may have had an impact in China even more than in other regions. I mean Grenoble, Aspen, Olympics. And so this is a possible explanation. And this for two reasons. One is what I said before that the brand is very strong in China. But also let me say that in China we have a very strong retail organization. that translate ideas, projects into engagement and business. And so they are very strong in conveying the brand message. Independent of what we do, I mean, anytime we do something special, they are very strong in delivering the message directly to customers. So this is the explanation we give ourselves.

Very clear. Thank you.

Next question is from Paola Carboni, Equita.

Yes, hello, hi, good afternoon everybody. I have two questions. The first one is specifically on the month of March. You have commented about the impact of regionally and in terms of lower tourism to Europe. Can you help us understand if you noticed any slowdown either in March or early April and the other nationalities overall. And if the other way around, are you seeing some repatriation of these global tourist flows to Europe in other regions or do you expect this to happen possibly in the time? And a second question is that very quickly on Grenoble, a few confirmations, if I'm not wrong, There will be another dedicated opening by the end of the year in Q4, and your plan in terms of Grenoble stores for the future, if you can update us. Thank you very much.

Hi, Paola.

About your prequestion, I mean, March software and service fora, Mina, this impacted Mina due to the not the lack but the strong decline in tourism coming to Europe mostly so Europe was most impacted by what we said other nationalities honestly Asian nationalities still good much better of course softer than the previous countries Thank you very much.

Normalization of growth with the Chinese cluster, which doesn't mean that we're losing momentum or anything. It's literally the natural curve that we see. So I wouldn't say much more than this, you know, besides the tourism consumption. And then, honestly, too early to tell about any repatriation somewhere else. Frankly, we don't have, you know, visibility on this. It's too early to comment. At the moment, we only see that there is a further increase And then your second question, can you say it again? Was it about Grenoble, our plans to open other Grenoble-only stores?

Exactly, exactly. I remembered of the further new opening by the end of the year, so I don't know if I'm right or not, and in any case other plans in the future.

Paola, actually something that is already in our pipeline for the end of the year? No. We may have talked about a plan, an idea for the future. I mean, it's not something we plan to open in many Grenoble-only stores. We targeted the most important stores. The most important ski resort. We are looking at an opportunity, honestly, but I don't know if it will happen by the end of the year in Crucibella. And so there are some important ski resorts we are targeting for a potential second store of Grenoble. But, I mean, there is not something precise. I mean, to be more precise, but it's still something we are simply working on. is a potential Cuchevella.

But Paola, don't expect that we have like a store opening rollout related to Grenoble. We are very opportunistic about it and we don't have any additional plans beyond what Luciano has just mentioned. I think if I'm correct, we are done with the Q&A. Operator, do we have someone else on the line?

We have no more questions registered.

Fantastic, so Thank you very much to everyone for participating in this call. For any follow-up questions, as usual, do not hesitate to contact me tonight or also in the coming days. And as a reminder, our H1 2026 Interim Management Statement will be released on July 22nd after market close, and our quiet period will start on June 23rd. Thank you again, and have a great rest of the evening. Bye.

Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.