Moncler

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Exceptional craftsmanship, timeless style, and innovative designs

Moncler, founded in 1952 and named after a mountain village near Grenoble, has evolved into a internationally recognized brand of luxury outdoor clothing. Acquired by Remo Ruffini in 2003, the company has since expanded globally, building a strong presence in the luxury market.

We invested in Moncler in 2019 because of its combination of high returns and growth potential. The CEO is very protective of the brand, ensuring that inventory levels are maintained at reasonable levels and therefore margins are protected and returns on capital are high.  Moncler’s growth is driven by pricing power, geographic expansion - particularly in China - and a younger customer base that’s expected to drive future growth.

Set apart in the world of fashion

What sets Moncler apart is its focus on scarcity and innovation. The brand’s authenticity and sports heritage give it a unique position in the luxury outdoor market, where few competitors offer the same combination of outdoor focus and high-end design. Collaborations with renowned artists and brands like Mercedes-Benz through its “Genius” project further enhance its appeal and customer loyalty.

Moncler’s supply chain, with some vertical integration and sourcing from European suppliers, ensures high-quality production and helps the company manage inventories efficiently to protect its margins. Its strategic acquisition of Stone Island in 2020 also broadened the range of products that are traditionally cold weather focused with apparel suitable for warmer months.

Demand from emerging markets

The company has significant growth opportunities in emerging markets, particularly China and North America. While China is already Moncler’s largest revenue source, it remains underpenetrated, offering substantial growth potential in the emerging middle class.  North America is also a key focus, with the company expanding its presence in new cities and revamping its wholesale business.

Despite recent challenges in the luxury sector, Moncler has delivered strong results and growth from all regions around the world.

The outlook: an ability to adapt and thrive

We believe in Moncler as a long-term investment because of its proven ability to adapt and thrive in both established and emerging markets. The brand’s focus on exclusivity, innovation, and a strong customer experience helps to maintain the brand’s strength and allure.

And in it has a proven track record of navigating challenging times in the luxury apparel markets - this ongoing resilience helps to build our conviction in Moncler’s future.