"Don't judge winter by June." Analysts did not share investors' concerns about Moncler

Shares of the Italian group Moncler, which owns the premium down jacket brand of the same name, fell 7.9% on the Milan Stock Exchange after the fashion house reported a slowdown in sales growth. This underscored its vulnerability to the decline in tourism in Europe, according to The Wall Street Journal.

Organic revenue growth was 5% in the second quarter of the year, compared with 12% in the first. At the same time, sales in the region, which includes Europe, fell by 8% year-over-year. The company attributed this to a decline in tourist traffic, particularly from Asian travelers. This year, international air traffic has come under pressure due to the war in the Middle East—a key transportation hub between Asia and Europe, the WSJ explains.

The pressure is unlikely to ease anytime soon, Bernstein analysts warn. “We believe these factors will most likely amplify Moncler’s seasonal sales trends this summer,” the brokerage firm noted. The company will likely have to wait until fall to see sales growth for its iconic jackets, analysts predict.

Although the results were weak, the second quarter accounts for only a small portion of Moncler’s total annual revenue, and in the long term, the group will be able to maintain growth rates above the market average, according to Citi analysts Thomas Chove and Alberto Checchetto. “These results will be of limited significance if the Moncler brand demonstrates its usual strength in the fourth quarter. Don’t judge winter in June,” they noted.

13 out of 25 analysts covering Moncler stock recommend buying it. 11 recommend holding the stock in their portfolios. And only one recommends selling.

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