Moncler Spa Unsp/Adr

Good evening. This is the Coral School Conference Operator. Welcome and thank you for joining the Montclair Group First Quarter 2025 Interim Management Statement Conference Call. As a reminder, all participants are in listen-only mode. After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero 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 near 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. Okay, before diving into the presentation, I'd like to take a moment to talk about the context in which we're currently operating. The macro and geopolitical landscape has remained highly volatile and increasingly unpredictable, a trend that has only intensified in recent weeks. In this environment, our focus as a group is very clear to continue executing our long-term, brand-first strategy across both Montclair and Stone Island, staying true to our commitment to creativity, innovation, and customer centricity. At the same time, it is equally important to maintain very strong operational discipline and financial rigor. Flexibility and responsiveness have always been part of our DNA, and today they are more essential than ever as we navigate this period of uncertainty. Now, moving on to our Q1 results, I'm delighted to announce that as a group, we achieved revenues of 829 million euros, up 1% at constant effects, with Moncler at plus 2% and Stone Island at minus 5%. Both brands registered solid growth in our core DTC channel, Moncler at plus 4%, Stone Island at plus 12%, despite an exceptionally demanding comparable base from Q1 last year. Now, moving on to our Moncler brands remarks, let me say that there is no better way to start than commenting the extraordinary Moncler Grenoble experience we brought to life in March. This year, Moncler Grenoble landed in Courchevel, a powerful moment that took the brand's core identity to new altitudes. Over the course of a full weekend, we immersed the Moncler Grenoble community, including ambassadors, celebrities, or friends of the brand, in the world of Grenoble, a universe combining high performance with high style. It was an experience designed not just to showcase a collection, but to express the full dimension of the brand. I'm sure you probably caught a glimpse of this on social media, but the highlight of the weekend was the spectacular show at the Courchevel Altiport, more than 2000 meters above sea level, where we unveiled the Fall Winter 2025 collection in a truly unforgettable setting. The event has been instrumental in further authenticating this distinctive brand dimension in the performance luxury space. And just to share a few stats, the event had a very strong media impact. over 3 billion in potential reach globally, over 300 million in global engagement, over 2,000 press articles and over 1,000 social press articles, making it the most impactful Montclair Grenoble event up until now. But it wasn't just about Courchevel. Still talking about the three brand dimensions and Grenoble in particular, if you move to page five, you can see that in Q1, We continued our all year around journey, launching our third spring summer Montclair Grenoble campaign, introducing a collection of lightweight layers designed to adapt to outdoor activities such as trekking or hiking. Talking about Montclair Genius, following on from the lineup presented at the City of Genius event in Shanghai in October last year, in the quarter we launched the collection in partnership with Fragment by Hiroshi Fujiwara. Hiroshi, who is a Moncler Genius friend and long-time collaborator, reimagined functionality and technical expertise on everyday wardrobe pieces. Finally, when it comes to our main collection, I just wanted to flag in particular the strong brand, the strong plan behind the launch of the Men's Spring Summer 2025 Collection with a very powerful campaign featuring world-renowned actor Penn Badgley, which has been extremely well received globally. and a new footwear capsule designed by the very talented Salehi Bembry. Moving on to Stone Island's key initiatives in Q1. First, I would like to highlight the opening of the new Stone Island showroom in Milan, a key milestone in the brand's journey, which is enabling Stone to better present its collections and special projects to international audiences. On the distribution front, in January, we celebrated the opening of Stone Island's relocated store on Rue Saint-Honoré in Paris. A very important brand statement, spanning a total area of 200 square meters, with a design fully aligned with our recently developed global retail concept. A store that, thanks to a higher visibility and a better positioning, has already been delivering much better results compared to the older store. In terms of marketing, Stone unveiled the next chapter of its community as a form of research project showcasing its spring-summer 2025 collection. This next group of community members featured in the campaign was led by Spike Lee, a longtime Stone Island enthusiast. And then finally, in terms of product, I would like to highlight the revisiting of one of Stone's corner store fabrics, Razogonmato, which was first launched in 1984. In fact, we introduced the performance version of this fabric, showcasing Stone Island's continued strong focus on materials innovation, research, and development. Now, talking about numbers, we're going to start with the Moncler brand on page 7. We're happy to say that in the first quarter of the year, the brand grew by 2% at constant currencies. And looking first at the performance by geography, Asia was up 6%, thanks to the positive growth that the brand continued to register in the Chinese mainland, despite, I have to say, an extremely demanding base of comparison, and the ongoing shift of Chinese consumption abroad. Japan accelerated compared to Q4, mainly supported by tourist spending, while Korea showed softer trends compared to the previous quarter. EMEA was down 1%, impacted by the negative performance of wholesale. The DTC channel held steady versus the strong Q1 last year, and both local and tourist consumption remained positive in the quarter. The online channel instead was soft and continued to penalize the DTC performance of the region. Q1 revenues in Americas were down 2%, mainly impacted by the negative trend in the wholesale channel, while the DTC channel held up year-on-year. Looking at Moncler revenues by channel on page 8, we're pleased to say that in Q1, the DTC channel recorded good growth, up 4% at constant currencies. This performance is especially noteworthy considering the market volatility we have been navigating since the start of the year, as well as the exceptionally high comparable base the brand was facing across all regions, which last year all grew at a double-digit pace. Wholesale revenues instead were down 5% in line with management expectations, mainly due to the ongoing efforts to upgrade the quality of our distribution through further network optimizations. In fact, the share of wholesale revenues in the first quarter is now below the 15% mark versus the DTC share of almost 90%. Let me take this chance to reiterate that we expect this channel mix evolution to continue and we therefore expect wholesale to remain negative through the course of the year and to end 2025 with wholesale revenues down approximately high single digit, not different from the performance registered in the fiscal year 2024. Exactly what we said during the last conference call. Moving now to Stone Island on page 9, revenues for the brand were down 5% at constant currencies with a continued solid double-digit growth in the DTC channel, partially offsetting the decline in the wholesale channel in its largest quarter of the year. Looking at trends by region, Asia grew 15%, mainly driven by a strong performance of Japan and of the Chinese mainland. Korea improved compared to Q4, although it underperformed the rest of the region. EMEA revenues were down 11% as the positive performance of the DTC channel was not enough to affect decline in wholesale. And finally, America saw a decline of 18% in the quarter, mainly due to the double-digit negative performance in the wholesale channel. The DTC channel instead recorded positive growth and further improved compared to Q4. Looking more specifically at Stone Island trends by channel on page 10, the DTC channel continues to perform well and grew by a solid 12% in Q1, thanks to a positive contribution from all regions, particularly Asia. Wholesale revenues instead were down 19%. This is a higher decline compared to our full year indication due to a different timing of deliveries in Q1 versus Q2 compared to the timing of last year. In the second quarter, we will see a reversal of this. And so you can expect wholesale for stone to be positive in Q2. When looking at full year 2025, we reiterate the indication we gave upon full year results, pointing to a wholesale channel for stone that will continue to decline, but to a lesser extent than what we saw in 2024. And remember that you can expect a more negative performance in the first half of the year compared to the second half of the year, something we already mentioned last time. Last but not least, let's briefly look at our store network on page 11. At the end of March, Moncler counted 284 directly operated stores, while Stone Island counted 90. Over the course of Q1, Moncler saw one new store opening, Shanghai Grand Gateway, and three closures, including Shanghai The Rio, which we closed given the opening of the Plaza 66 flagship nearby, San Francisco Bloomingdale's given the closure of the department store in the city, and Seoul Incheon Airport Terminal 2, as we will keep a store in Terminal 1. The Sun Island DOS network was unchanged in the quarter. And finally, as usual, on page 12 and 13, we have two wonderful examples of recent store network initiatives. For Montclair, we have the opening of Shanghai Grand Gateway, which I've just mentioned. And for Stone, we have the relocation of the Paris flagship, which I described earlier on in the Stone Q1 highlights. We reached the end of the presentation, so I will now hand it over to the operator for your questions. I kindly ask you to speak to a maximum of two questions per person to give all participants the opportunity to ask a question. Operator, you can now open the Q&A session. Thank you.

Thank you. This is the Coruscant 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 touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. The first question is from Edward Oben Morgan Stanley. Please go ahead.