Moncler Shares Gain Most Since Trading Debut as Profit AdvancesThomas Mulier and Andrew Roberts
Moncler SpA shares rose the most since their 2013 debut as the Italian maker of $1,240 quilted jackets said growth will continue after 2014 profit beat analysts’ estimates.
The stock climbed as much as 11 percent in Milan, the biggest gain since its first day of trading in December 2013. Adjusted earnings before interest, taxes, depreciation and amortization rose 21 percent last year to 232.9 million euros ($257 million), Moncler said Wednesday after markets closed. Analysts expected 222.8 million euros, according to estimates compiled by Bloomberg.
The “golden goose” reported a “strong beat,” driven by an acceleration in fourth-quarter sales, Chiara Battistini, an analyst at JPMorgan Cazenove, wrote in a note to clients. She has an overweight recommendation on the stock.
Moncler is enlarging its store network and product range as it seeks a larger slice of the luxury apparel and accessories market that Bain & Co. has estimated reached $120 billion in 2014. The expansion is aimed at maintaining growth that’s outpacing rivals amid cooling demand.
“Some macro and geopolitical difficulties remain in the sector, but I believe that Moncler is ready to face them and to deliver also in 2015, another year of growth consistent with our approach to go fast, but with no hurry,” Moncler Chief Executive Officer Remo Ruffini said yesterday on a conference call.
Revenue increased 21 percent at constant currency rates to 694.2 million euros last year, also exceeding estimates.
Moncler traded 8.1 percent higher at 14.48 euros as of 10:37 a.m. in Milan, where the company is based. That gave the company a market value of 3.6 billion euros.