Category Archives: Moncler Uk

Moncler Outlet: Ain’t No Mountain High Enough

Moncler, the Italian-based luxury down jackets manufacturer, will soon celebrate its third year since its IPO on the Milan Stock Exchange with a sweet performance of +4% while the Dow Jones Luxury Index is down -22% since December 2013. We believe the company is still relatively small compared to its peers and we expect the brand to remain among the top fast-growing luxury companies.


The company was founded in 1952 by two French entrepreneurs from Monestier-de-Clermont, which is the origin of the name Moncler, at a time when winter holidays were democratizing. The brand was mostly known in France until 2003 when Remo Ruffini, current chairman and CEO, acquired the company with his vision as a creative director to make it a global luxury player. Moncler successfully launched Haute Couture collections exclusively made in Italy or France, which became a trendsetter in the fashion industry such as the Paris Fashion Week, attracting a large and wide customer base. Today, Moncler outlet has the biggest market share in high-end down jackets, which gives the brand flexibility on pricing hence margins and product innovation. Italian competitor Erno is also positioned in the same niche but its size and footprint is substantially smaller, VF Corporation could be considered a competitor but the product positioning is not comparable. The company is active in 70 countries with more than 180 mono-brand boutiques, including the recent opening of flagship stores in London, New York and Seoul. The rapid expansion of the retail network since 2013, from 57% to 71% of net revenues, means higher costs that are fortunately offset by higher EBITDA margins and the privilege of not diluting the brand equity, which is crucial for Moncler outlet online. In fact, this fast-growing brand has taken concrete measures to stay recognizable but also discrete as it is facing the same threats as fashion companies that are seen everywhere and fear to become ubiquitous.


Moncler shares should benefit from the positive buzz after the fashion shows in Milan and Paris. Indeed, Moncler Outlet Spring/Summer 2017 Fashion Week was important to promote its identity and elevate its image. The Freeze for Frieze operation, which promoted young contemporary artists and designers, was a clever move to show the desire for trends disruption and freedom of creation that Remo Ruffini has brought to the brand. These initiatives will increase the audience and reputation of the company among fashion and luxury influencers. Another external factor that should positively impact the top line, the colder-than-usual weather in Europe (50% of net sales) during October, which is forecasted to continue at least beginning of November. Being focused on winter fashion makes the brand highly dependent on the weather conditions, which tend to be abnormal in recent years. The diversification into Spring/Summer items is a good strategy but outside of Moncler’s DNA and above all, a lower margin business.


Throughout its mono-brand stores, Moncler generates €30,000 per square meter, which is one of the highest rate in the industry after LVMH. The company’s geographic breakdown is well diversified with Asia/RoW representing about 1/3 of revenues, so approximately €350 million in sales, which is still a small number when taking into account the strong potential of the brand in the region. Americas represent only 12% of sales, the new flagship in New York (its largest worldwide boutique) should further boost local sales as the region is still under-represented with 15 mono-brand stores compared to the quality and quantity of ski resorts available in the country as well as the Latin American clientele who enjoys shopping in Miami for tax reasons. The product assortment has been reviewed to offer accessories or other winter items in the middle of down jackets. Moncler has launched an efficient internal counterfeiting tool which enables the company to trace each item to avoid wholesale dealers selling on the grey market and tarnishing the brand image with items that are discounted. Moncler has allowed some wholesalers in the US to discount some down jackets collections due to the mild weather last year; however, these items were dedicated to the wholesale channel and not available in retail stores.


Moncler has been able to grow sales by double digits +19% (at constant exchange rates) to reach €880 million at the end of 2016. However, we noticed a slowdown in same-store sales growth, which decreased from +8% in 2014 to +6% in 2016. If we look at the last 12 months, revenues recorded at €931 million, inventory increasing at a slightly faster pace than sales in the last four years. The recent acquisition of a production site in Romania for an industrial technological R&D hub for down jackets and to further integrate vertically should help cheap Moncler sale increase its gross margin, which is currently at 74%. EBITDA margins of 32.8% are hard to beat. After topping 34% in 2012, we are skeptical in the company’s ability to improve margins. Nevertheless we appreciate its strong pricing power in a deflationary environment, thanks to its culture of thinking “outside the box”. Profitability ratios are very encouraging with ROA at 17%, ROE 31% and ROCE 33% while net debt has substantially decreased from €230 million in 2012 to €85 million in 2016 thanks to an improved free cash flow level. The company has increased its capital expenditures by 10% to €75 million in 2016 to finance the new store openings internationally but still pays stakeholders a 1.20% dividend. In an Italian stock market that is down -23% with a constitutional referendum to come in December, Moncler share price is up 15% year to date. Strong top-line growth is anticipated, so you are paying 30 times sales but we are confident the company will be able to sustain high profit margins so we believe we should focus on profitability multiples with EV/EBITDA at only 5.60x. Valuations are attractive; even if you look at the average earnings of the last three years, you are paying 15 times EPS, taking into consideration that Moncler outlet uk has grown rapidly. You are paying 1.6 times the earnings growth, which is more than acceptable for the luxury industry. We have heard several M&A rumors these last couple weeks in the fashion industry with Coach looking at Burberry and Phillips-Van Heusen potentially interested in Michael Kors. We believe Moncler could be a takeover target by European luxury groups as it’s approaching the billion euro sales threshold with a robust balance sheet and after demonstrating its ability to perform throughout the years in a business that is highly seasonal. The 6% disposal of Eurazeo shares in Moncler last September could be a takeover opportunity as the free float is now above 50%, which is tempting for an acquirer who is looking for a company that “Goes fast but with no hurry”.

How Did Remo Ruffini Turn the Humble Moncler Down Jackets into a Multibillion-Dollar Empire?

The French National Ski Team wearing Moncler, 1966.

By the time Ruffini was born, Moncler was already established as a European luxury label. Founded in 1952 by the French entrepreneur René Ramillon (the name is an abbreviation for Monestier-de-Clermont, an Alpine town), the company originated as a producer of outdoor equipment—tents, sleeping bags—and began to make down jackets at the request of the legendary French mountaineer Lionel Terray.

Soon there was a specialized line: Moncler Pour Lionel Terray. Italian and French mountaineers wore the gear through the ’50s and ’60s, and in the 1968 Winter Olympic Games, so did the French ski team. Jean-Claude Killy hung his three gold medals over a cheap Moncler jacket. As Alpine holidays grew more popular, the company became a signifier of ski glamour. “Moncler!” reminisces the Italian-Texan socialite Michele Recchi. “You put on one of their jackets and felt like you were Grace Kelly at the Palace Hotel.”

At 14, Ruffini himself owned a prized puffer that he flaunted on his motorbike. In the ’80s, the jackets became an unofficial uniform for a posh group of teenage rebels nicknamed paninari, after Il Panino, a popular snack bar in Milan. The fad got so big that it inspired a song by the Pet Shop Boys, “Paninaro,” and spawned a rogue subculture of kids who slashed their puffers and covered them with graffiti.

By the end of the ’90s, however, Moncler was struggling, pinched between the viral expansion of luxury brands like Prada and Gucci and mega sportswear companies like the North Face. But in 2003, Ruffini arrived, determined to woo a broader range of consumers. When he and his backers bought the ailing label, it had total annual sales of about $62 million; by 2010, they were $368 million. “Other brands have a target,” he says, “perhaps a certain age group, people earning a certain amount of money. But I thought: We need to make something for skateboarding kids, for travelers, for the elegant lady who dines out.” The jackets became both more high-tech and more high fashion. He expanded aggressively, especially in the hungry new markets of Asia, and balanced tradition and innovation by creating distinct lines: Moncler outlet uk Grenoble, the classic sportswear division; Gamme Rouge, the couture-ish women’s line, designed by Giambattista Valli; and Thom Browne’s daring Gamme Bleu men’s line. (Aside from Pharrell, there have also been collaborations with Junya Watanabe, Sacai’s Chitose Abe, Erdem Moralioglu, Masaaki Homma, the kooky Los Angeles collective FriendsWithYou, and most recently, Kanye West’s stylemeister, Virgil Abloh.) Less splashy but perhaps most remarkable of all is an ultralight collection called Longue Saison, which has somehow succeeded in getting people to consider down jackets a warm-weather staple.

The Moncler jackets outlet billionaire


Remo Ruffini became a billionaire at exactly 9am (Italian time) on Monday. During the nanosecond it took for this to happen, the 52-year-old was sitting in the front row of a 300-strong crowd in the Milan Borsa – stock exchange – watching a Nasa-themed countdown video: “We have lift-off,” intoned the voiceover to a backdrop of igniting rockets; “all systems GO!”That was the moment at which shares in Moncler outlet, the label Ruffini has spent a decade reinventing, started to trade on the open market. Massive demand meant that the shares for sale instantly increased in value by 38 per cent from their £8.50p offer price to just over £12.


By the end of the day, MONC shares were trading at a smidgen under £12.66p: a 47 per cent rise on their opening price. At a stroke, Moncler had comfortably trumped the Royal Mail (38 per cent) as Europe’s biggest first-day flotation gainer of 2013. And Ruffini’s own 32 per cent stake in a company now valued £4.2billion was worth £1.4billion.

By 9.06am, when Ruffini took to the stage to thank the 10 banks, three lawyers, two private equity funds and 100 Moncler employees in the room who had helped make his billionaire breakthrough happen, he seemed rather pleased. My Italian is patchy, but I’m almost certain he said “Today, we have kissed the universe.” An elegant editor from Corriere della Sera in the next seat laughed, leant over and said: “He is a good guy, he worked hard and he deserves this. They think big, they have the capacity and intention of becoming a global brand.”

When the speech was finished, fake snow wind-machined through the room as camera crews and Kiton-besuited bankers clustered to congratulate the beaming, bearded man behind Italy’s biggest public flotation since 2010. Later, as he boarded a flight to Rome, I asked Ruffini by text how he was doing. “I’m just thrilled…”, came the answer.


On Sunday evening, Ruffini had buzzed me into his Milan apartment, introduced his dog Ulysses, poured some red – and confessed to feeling on edge. “I will be disappointed if the price goes down tomorrow, yes. I will be unhappy. Because I will think that I have made a mistake somewhere.”

When Ruffini acquired cheap Moncler uk for a relative snip in 2002, it was a dusty skiwear brand whose glory days seemed well behind it. Founded in 1952 by an Alpine climber named René Ramillon, Moncler first took off when his fellow climber Lionel Terray brought back the idea of making cold-weather nylon jackets filled with feathers from an expedition to Canada. Warm, light, and quick-drying, Moncler sale crossed over from climbing and became popular on the slopes, even more so when it outfitted the French ski team at the 1968 Winter Olympics in Grenoble.

Aged 14, Ruffini badgered his mother into buying him a 350,000 lire Moncler to ride his scooter in, and in Milan a 1980’s youth tribe called the Paninari started to wear the item as a fashion statement. When Ruffini bought Moncler jackets outlet, it had faded from fashion, been eclipsed on the slopes by a new generation of ski-gear, and had a modest turnover of around £33 million. One of that new generation was The North Face, which, said Ruffini, “is a very good company, very consistent with a turnover of around £1.7 billion. A good product, made in China with lots of repeated models. But we are on a different level. We make our product, from scratch, in Italy. Every ingredient is made exclusively by or for us. We work with zipper companies to find a new zip, and nylon companies to make new materials.”

As well as that nylon, Moncler uk garments come in waterproofed wools, tweeds and sometimes fur, too, and tend to cost at least four times their North Face-ish equivalents. A basic jacket will cost about £600, and a fancy one maybe four times that.That’s because Moncler is pitched at the rich, or those who would like to appear so. “Luxury” consumers who want an outrageously insulating winter coat of Mercedes Benz build quality and Rolls-Royce swank-value. According to Ruffini, the key to winning these customers – Moncler now has 122 stores and saw a turnover of just under £423 million last year – is robustness.

“You know, whenever I think of ‘luxury’ – not a word I always like so much – I think of the wallet my mother gave me 25 years ago,” he said. “It is from Hermès, and it is always here in my pocket. It has not melted, or fallen apart, it is still there. For me, that is luxury.

”Light as the feathers it is filled with, but tough as boots, too, Moncler’s revival began when Ruffini opened stores in Europe’s poshest ski resorts. Then he pushed to export the mountain jacket to lower altitudes, producing designs roomy enough in the shoulder for a suit to be worn underneath and launching Gamme Rouge, a collection aimed, initially only in Ruffini’s fantasy, “at making down jackets so elegant women would wear them to a first night at La Scala”. Now, women in Milan do wear their lavishly trimmed Monclers to the opera. Thanks to Gamme Bleu (a sometimes absurdist men’s range overseen by the American Thom Browne), a collaboration with Pharrell Williams (the 21st-century musical blade who sang Get Lucky), and various other high-fashion sidelines, Moncler’s audience has broadened still further.

“When we were starting Moncler,” said Ruffini, “my people would say, ‘So who is our customer? What is their age?’ And after thinking and thinking, I thought we could take this great product – the original down jacket – and try to make it for everyone.”

Despite the higher profile of those highest-price designer lines – whose quirk-heavy catwalk shows have recently featured skateboarders in gorilla suits and models on zipwires – the vast majority of cheap Moncler sale come from its more muted jackets, which sometimes don’t look a million miles from those modelled by Terray in the 1950s.

Ruffini is suspicious of fashion, he says – and the motto of this week’s IPO was the decidedly ambiguous “Survive Fashion”. Partially, this is thanks to his father, Gianfranco, who in the 1970s created a range of psychedelic rayon disco shirts called Nik Nik that were briefly as hot as Travolta and made a fortune – then fell terminally out of vogue. Ruffini said: “A fashion company can be fantastic, but then suddenly… nothing. I want to make something that really lasts.

”So what now for Moncler outlet, described on the front page of yesterday’s Financial Times as potentially as high a stock-market climber as Burberry? “The biggest risk is that we slip. Many companies make a fantastic number, but then a few years later they have lost their energy.” Ruffini has not himself sold a single share, because “I don’t think I have finished the job. We’ve done a lot in the last 10 years but we can do more. I want to make the jackets even lighter – they have to fly!” Surely, though, he was tempted to cash in? “People asked me how much I would sell. Maybe seven, eight per cent? They said I could buy a new house, or a new boat. But I know this guy with eight houses – and what can you do with eight houses?”