JHVEPhoto We recently noticed that Moncler's stock price ( OTCPK:MONRF ) has underperformed the market (Fig 1), and this was due to a few sell-side analysts who started cutting the company's target price. The group has strong market positions in outerwear and a top-performing team that has successfully implemented product diversification to reduce seasonality. As a reminder, Moncler was established in 1952 with a focus on winter items.
For this reason, looking at the past stock price performance, Moncler has usually suffered in the summertime. We should also report that Golden Goose postponed its €1.7 billion IPO last Tuesday, blaming dicey market conditions and EU political uncertainty.
This was seen as a cold shower from the EU luxury market. That said, Golden Goose has a lower growth rate and a higher debt than Moncler. Here at the Lab, we believe this is not relevant.
We anticipate Moncler will be immune to the overall sector slowdown. Still, considering a physiological slowdown in turnover in Q2, the company remains our favorite stock within the sector. This is based on 1) a supportive equity story, 2) impressive margins, 3) a strong brand position, particularly with Chinese customers, and 4) growth drivers due to tourism exposure.
Mare Ev. Lab Rating Update Fig 1 Why are we still positive? ( Solid results ahead ). Firstly, Moncler is one of the few luxury companies with a retail expansion strategy and the internalization of a direct e-commerce business.
Even if we ass.