Moncler Announces "Mid-Single-Digit" Price Hike
Second Quarter Revenue Declines... Impacted by Weak Tourist Demand
Italian luxury brand Moncler is raising its prices amid the impact of tariffs originating from the United States.
According to CNBC on the 24th (local time), Moncler announced that it has increased product prices by a "mid-single-digit" percentage in the second half of this year to offset the effects of U.S. tariffs, and is planning an additional increase in the first half of next year. The company also stated that its overall strategy for next year is to wait until more specific information about U.S. tariffs becomes available.
Luciano Santel, Moncler's Chief Operating and Supply Officer, said during an earnings call following the second quarter results announcement, "We usually finalize our overall winter season pricing strategy around October," adding, "It's still too early at this point."
Roberto Eggs, Chief Business Strategy and Global Markets Officer, stated that any further price increases would be more conservative, but noted that they could be influenced by macroeconomic trends and exchange rates. Eggs also mentioned that the opening of about 10 new stores planned for next year could be flexibly adjusted depending on the economic situation and the recovery of the struggling luxury market.
According to Moncler's second quarter results, demand in the United States and China remained strong, but sales declined due to weak demand from tourists. The group's total revenue for the three months ending June 30 decreased by 1% year-on-year at constant exchange rates, reaching 396.6 million euros (641.94866 billion won). This figure fell short of market expectations, which were 427.2 million euros (691.47874 billion won).
The U.S. market, which accounted for 14% of Moncler brand sales, recorded a 5% increase in sales during the quarter. However, the company stated that it is unclear whether this figure was driven by consumers making advance purchases before the tariff increases.
Sales in the Asian market, Moncler's largest market, remained at a similar level to the previous quarter. In contrast, sales in the Europe, Middle East, and Africa region declined by 8%. Moncler explained that Japan was the only market in Asia where sales decreased, attributing this to the strong yen. The company also stated that the decline in sales in the European market was due to a contraction in local tourism spending.
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