Moncler Spa Unsp/Adr

good evening this is the chorus call conference operator welcome and thank you for joining the montclair group nine months 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. The interim management statement call is hosted by Luciano Santel, Chief Corporate and Supply Officer, and by myself. I will start providing a brief overview of our results, and then we 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 risk, 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. Before diving into the presentation, I'd like to take a second to highlight two moments we're particularly proud of. A couple of weeks ago, we launched the Moncler Campaign Warmer Together. which celebrates the values that have defined Moncler for over 70 years. Love, connection, and a shared sense of warmth. Beautifully embodied by the friendship of the two legendary Hollywood icons that you can see on the screen, Al Pacino and Robert De Niro. We're extremely proud of the resonance and the attention that this campaign has received, reaching the highest level of social engagement ever for the brand. And we will have the chance to talk about it in more detail during our full year results presentation in February. The second highlight and still linked to the same values that I've just talked about is the opening of Casa Moncler, our new headquarters, where we moved in early September, gathering more than 700 people under the same roof. We all feel it is more than just a new space. For us, it is a new home, a symbol of creativity, collaboration, and belonging, a real milestone in our journey. And I hope to welcome as many of you as possible here in Milan in the new building in the coming months. Now, let's move to page three, where we will briefly comment the group nine-month revenue development focusing on growth at constant effects. In the first nine months of the year, the group registered 1.84 billion euros of revenues in line with last year, with Q3 at 616 million euros, down 1%. The Monca brand revenues were in line with last year in the first nine months and down 1% in Q3, with both the DTC and wholesale channels slightly improving sequentially. As a reminder, Q3 remains the largest wholesale quarter in the year, so the one with the channel mix mostly skewed towards wholesale, which was down 4% in the quarter. Stone Island revenues were down 1% in the first nine months and in line with last year in Q3 with a double-digit positive DTC channel offsetting the decline recorded in the wholesale channel. Now, moving on to page four, I would like to highlight some key Moncler brand initiatives launched during the course of the third quarter. First, when it comes to our main collection, the launch of the pre-fall 2025 collection, accompanied by a very strong campaign shot in London, starring Brooklyn and Nicola Peltz-Beckham. The campaign embodied metropolitan sophistication and minimalism with a strong focus on fabric research and easy layering options in a very versatile color palette. Talking about Montclair Genius, we had two drops during the quarter. We launched the debut collection by iconic editor and stylist Edward Enningfell, who envisioned adaptable, functional, and layerable looks designed for seamless transitions between climates. We also presented the collection by Asaprocky inspired by vintage ski garments and characterized by a bold color palette and great practicality. And the picture that you can see on the screen is a limited edition of a reimagined iconic Moncler Maya co-designed with Asaprocky. And very few pieces will be available in December at selected directly operated stores. Finally, as a testament to the importance of the online channel within our omnichannel strategy, during the quarter we unveiled our new Moncler.com website, featuring an enhanced user experience and stronger product focus, leveraging Google's generative AI to transform the website from a point of distribution into a true brand destination, where product truly takes center stage. And I would encourage you to take a look online in case you haven't seen it yet. Moving on to Stone Island on page five, let me highlight a couple of important brand initiatives launched in Q3. First, we unveiled the next chapter of the community as a form of research project, the ongoing collaboration between Stone Island and members of the brand's community that were captured in archival icons and signature items from the new autumn-winter collection. We're very happy about this campaign that has been further enhancing the brand's visibility globally. Secondly, in September, we presented the next chapter of our long-term partnership with New Balance by revisiting the New Balance 574 in three monochrome colorways, inspired by the ethos of the Ston Island Ghosts sub-collection. Talking about numbers, we're going to start with the Moncler brand on page 6, looking first at the performance by geography. Starting with Asia, that as you know includes APAC Korea and Japan, revenues were flat year-on-year in Q3 at constant exchange rates, in line with the previous quarter. China continued to outperform the rest of the region, while Japan and Korea registered a weaker performance, essentially offsetting the growth recorded in China and the rest of Asia Pacific. In EMEA, revenues were down 4% year-on-year in Q3, improving sequentially compared to the minus 8% registered in Q2, with tourism flows remaining subdued in the region. and below last year levels, albeit slightly improving compared to the previous quarter. Finally, the Americas region was up 5% in Q3. Bear in mind that this region has been particularly penalized by the HOSA performance, which was negative in the quarter, and this has partly affected the double-digit growth registered by the DTC channel, which was driven by strong local US consumption. Moving to page seven, focusing on revenues by channel, both DTC and wholesale showed slight sequential improvements compared to Q2. The DTC channel in the third quarter was flat year on year at constant exchange rates, slightly improving compared to the minus 1% registered in the second quarter, despite persistent macro headwinds and still relatively weak consumer sentiment overall. Looking at the geographies that performed better in DTC, I can mention America and China, which outperformed in this channel and continued on a solid growth trajectory, while EMEA and Japan underperformed, still affected by weak tourism flows. Looking at the wholesale channel, in the third quarter, it was down 4% year-on-year, improving compared to Q2, although still impacted by the ongoing upgrades of the quality of our distribution through doors closures and a general network optimization. As mentioned earlier, Q3 is still the most significant wholesale quarter in the year, so the quarter where the share of wholesale as a percentage of total revenues is the largest in the year. And while we talk about wholesale, you might have noticed that in the first nine months of the year, our wholesale channel was down 5% at constant effects compared to our guidance of high single digit decline for the full year. The better than expected performance so far has been driven by reorders from our partners, thanks to a good sellout. Hence, we are pleased to say that also for our full year, we now expect wholesale revenues to be down around mid single digit at constant effects. versus the high single-digit decline indicated before. Now, moving on to some island regional trends on page eight, you can see that Asia continued to outperform with revenues up 9% year-on-year, with all the main countries in the region registering a positive performance. Among them, China, APAC, and Japan were particularly strong. In-year revenues were down 3% year-on-year, This masked a very different performance of the two channels. BTC was on a strong double-digit growth trajectory with solid local consumption, while the wholesale channel was negative, affecting the overall performance of the brand in the region. Americas was down 3% in Q3 year-on-year, but both the wholesale and the BTC channels improved sequentially compared to the second quarter. Looking at the trends by channel on page 9, you can see more clearly the different development of wholesale versus DTC and the ongoing shift from one channel to the other. In Q3, DTC revenues were up 11% year-on-year, driven by a solid performance in Asia and EMEA, This is a very solid figure also considering the fact that as a reminder, this is mostly organic growth as this year we have negligible contribution coming from that space. The wholesale channel was down 8% in the quarter, although this was entirely due to a different timing of deliveries in Q3 versus Q4 compared with the same period last year. In fact, we expect these to reverse in the fourth quarter. We can therefore confirm that the performance of this channel in the second half of the year is expected to be less negative compared to the performance of the first half, leading to a single-digit decline for the full year at constant effects. Finally, let's briefly go through our store network on page 10. At the end of Q3, the Moncler DOS network reached 294 units, a net increase of 7 units compared to the end of June, with most of the openings done in September at the start of the fall winter season. The most notable retail projects that I would highlight are the opening of the store in Austin, U.S., and the expansion of the Shinkan Place store in Beijing. Looking at Stone Island, the network counts 92 stores and that increase of one unit compared to the end of June. And among the various opening relocation or expansion projects this quarter, I would highlight in particular the relocation of the flagship store in New York. On pages 11, 12, and 13, you can see some pictures of these important projects. I'm going to stop here now and I will hand over to the operator for your questions. As usual, I kindly ask you to speak to a maximum of two questions per person to give everybody the chance to participate. Operator, feel free to open the line. Thank you.

Thank you. This is the Chorus Co-Conference operator. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touch-tone telephone. To remove yourself from the question queue, please press star and 2. Please pick up the receiver when asking questions. Anyone who has a question may press star and 1 at this time. The first question is from Melania Grippo, BNP Paribas. Please go ahead.