Moncler’s leadership position in a growing and conspicuous down jacket category, strong pricing power, and control over distribution should allow the company to generate economic profits over the medium to long term, granting it a narrow moat.
Moncler is the global leader in a growing niche, delivering strong sales densities and operating margin of 30% versus 18%-20% for the industry.
Bears
The puffer coat and jacket category has been growing, driven by wardrobe casualization. The segment’s growth attracts competition from both new players and established brands expanding into the category.
Moncler consists of its namesake brand and Stone Island (acquired in 2021). The Moncler brand is one of the leading players in luxury outerwear. It is globally present with 35% of sales generated in Europe, the Middle East, and Africa, 15% in the Americas, and 50% in Asia and rest of the world. Most of Moncler brand sales are direct to consumer, with 84% generated through the own-retail channel. Around 75%-80% of revenue is generated in the core outerwear segment, with the remainder in the accessory, knitwear, and footwear categories. Stone Island contributed 14% of revenue in 2023.