A strong winter season for Italian premium brand Moncler has supported luxury stocks

Strong results from premium outerwear maker Moncler, best known for its down jackets, supported the entire luxury sector, The Wall Street Journal noted. Shares of industry leader LVMH rose 4.4% in trading on Feb. 20. French rivals Hermès and Kering, which owns Gucci, added 3.6% and 0.9%, respectively. The papers of Italian company Salvatore Ferragamo jumped by 5%, and Brunello Cucinelli - by 2.3%.

Moncler's own quotes soared 15.7% before slowing slightly.

Luxury goods producers were boosted by the U.S. Supreme Court's decision to overturn Donald Trump's global duties. European luxury stocks are among the most sensitive to trade restrictions, the Financial Times points out .

Moncler's fourth-quarter 2025 revenue rose 7% at comparable exchange rates to €1.29 billion, beating analysts' expectations. The growth was driven by both the flagship down jacket brand and the Stone Island Mark, which had previously experienced a difficult period, the WSJ noted. Revenue for the full year 2025 added 3% to €3.13 billion versus the consensus forecast of €3.06 billion, Reuters reports.

At the same time, the company's operating profit fell 0.3% to €913.4 million last year.

Moncler's report confirms the brand's strong momentum and shows above-market growth, primarily due to strong sales among Chinese consumers, said Equita SIM analyst Paola Carboni.

China has long been a major source of revenue for luxury companies, but in recent years it has become a troubled market, with economic woes pushing shoppers to save rather than spend on high-priced goods. A recovery in demand in this strategically important region is critical to a possible revival of the entire sector after several years of declining demand, WSJ explains.

Although Moncler warned that the global geopolitical and macroeconomic environment remains uncertain and volatile, analysts at Deutsche Bank called the manufacturer's results a positive surprise that could support the entire sector.

"Moncler's performance was above forecasts for both revenue and margins thanks to an acceleration in growth that appears to be sustained into early 2026," analysts at Italy's Banca Akros said. After the publication of the report, the bank raised its recommendation on the company's shares from "hold" to "buy" and increased the target price from €61 to €65, MarketScreener writes. The new target implies growth of quotations by almost 30%.

This article was AI-translated and verified by a human editor