Early premarket gappers
- Gapping up:
- CLS +33.7%, ENVX +15.1%, ALGN +14.6%, HLX +12.2%, NXT +9.5%, META +8.4%, ATHM +8%, IMAX +5.6%, OSTK +5%, QS +4.8%, CASH +4.6%, STM +4.6%, WU +4.5%, SLM +4.2%, ASGN +3.8%, LRCX +3.5%, EXLS +3.3%, VRCA +3.1%, NTGR +3.1%, NOA +3%, AIN +3%, ASX +3%, GFL +2.8%, CNMD +2.7%, NVDA +2.4%, EG +2.3%, TER +2.1%, MEOH +2%, VICI +2%, CLB +2%, AGI +2%, LQDA +1.9%, CCS +1.9%, QGEN +1.6%, AEM +1.6%, CVE +1.6%, AMZN +1.4%, AJRD +1.4%, GSHD +1.4%, SUI +1.4%, TAK +1.4%, FTI +1.3%, MYRG +1.2%, NOV +1.2%, ACGL +1.1%, TTE +1.1%, AR +1%, TNET +1%
- Gapping down:
- EYE -19.6%, OII -15.9%, PI -13.9%, LC -11.3%, MXL -10.4%, ESI -9.4%, CMG -8.5%, NOVA -7.6%, TROX -6.8%, PDM -6%, EBAY -5.7%, EW -5.6%, GGG -5.5%, PLXS -5.2%, EVTC -4.9%, VKTX -4.8%, PDS -4.8%, BCS -4.3%, CSL -4.2%, BBIO -3.2%, PTEN -2.6%, RJF -2.6%, CMPR -2.6%, NOW -2.5%, PTC -2.5%, LHX -2.3%, ATEN -2%, AGR -2%, LSTR -2%, ACDC -1.9%, VMI -1.9%, WFG -1.9%, FLEX -1.9%, URI -1.8%, HP -1.8%, ALSN -1.5%, SEIC -1.5%, EIG -1.5%, TAL -1.5%, EQC -1.2%, IART -1.2%, PEGA -1.1%, KBR -0.9%, FLR -0.7%, IEX -0.7%
Chinese electric-car shares boosted by Volkswagen investment in Xpeng
German group’s 5% stake will give it one seat as an ‘observer’ on Chinese carmaker’s board
Shares in Chinese electric-vehicle makers rose sharply on Thursday after Volkswagen announced a tie-up with Chinese rival Xpeng designed to boost the German car manufacturer’s lagging sales in the country.
Xpeng’s Hong Kong-listed shares climbed more than 33 per cent while those of domestic peers Nio and Li Auto rose 12 per cent and 4.2 per cent respectively. XPeng’s stock has doubled in the past six months, with analysts noting a strong recovery in sales momentum due to aggressive pricing of its new G6 model.
Volkswagen said on Wednesday it would invest $700mn in the group as it attempts to boost its presence in China’s highly competitive electric-vehicle market. The deal will give VW a 5 per cent stake in the Guangzhou-based EV maker as well as a seat as an “observer” on its board.
VW said the “initial stage” of their relationship would focus on jointly developing two VW-branded “midsized” electric vehicles, one of which is planned to hit Chinese roads in 2026.
The sprawling German group, which other than its eponymous VW brand includes companies such as Porsche and Audi, was one of the first western companies to enter the Chinese market in the late 1970s.
It still sells more cars in China than in any other company but is falling behind in the fast-growing electric segment as Chinese rivals such as Xpeng and Warren Buffett-backed BYD quickly gain market share.
BYD dominates China’s new-energy vehicle market, which includes plug-in hybrids and pure battery EVs, with a market share of more than 37 per cent.
Including the Xpeng stake, VW has this year alone announced investments worth nearly €5bn in China, the world’s largest car market and where the Wolfsburg-based company makes roughly half of its profits.
The VW-Xpeng deal was a vote of confidence in the Chinese EV industry, said Tu Le of Sino Auto Insights.
However, he added that it was also an admission by VW of its inability to compete in the electric market without Chinese technology.
VW’s increased investments in China also come as Berlin raises concerns over how reliant many German companies are on Beijing for profits amid rising geopolitical tensions.
Germany’s foreign minister Annalena Baerbock this month warned companies investing heavily in China that they would “have to bear more of the financial risk themselves”.
VW also announced on Wednesday that Audi was planning to expand its existing co-operation with SAIC, VW Group’s first partner in China.
The collaboration between Audi and SAIC would start with electric cars “in a segment where Audi does not yet have a presence in China”, VW said, without elaborating on the timing of plans.
- Aixtron (AIXA TH) +4.1%
- Aixtron Boosts FY Orders Forecast
- Mercedes (MBG TH) +1.2%
- Mercedes Raises Guidance on Improved Car, Van Pricing (2)
- Just Eat Takeaway (T5W TH) +1.1%
- LVMH (MOH TH) +1%
- Vodafone (VODI TH) +1%
- Kion (KGX TH) +0.9%
- Kion Boosts FY Adjusted Ebit Forecast
- Airbus (AIR TH) +0.9%
- UniCredit (CRIN TH) +0.8%
- Barclays 2Q CIB Revenue Misses Estimates
- Heidelberg Materials (HEI TH) +0.8%
- Heidelberg Materials Forecasts FY Results
- Stellantis (8TI TH) +0.8%
- Deutsche Telekom (DTE TH) -0.6%
- Shell (R6C0 TH) -0.8%
- Shell Reports $3 Billion Buyback After Adj. Profit Miss: TOPLIVE
- Rolls-Royce (RRU TH) -1%
- VW (VOW3 TH) -1.2%
- *VOLKSWAGEN 2Q ADJUSTED OPERATING PROFIT EU5.60B, EST. EU6.09B
- Nel (D7G TH) -1.2%
- K+S (SDF TH) -2.4%
- DZ Bank cuts stock to hold from buy: APA
DAX:
- Mercedes (MBG TH) +1.2%
- Mercedes Raises Guidance on Improved Car, Van Pricing (2)
- VW (VOW3 TH) -1%
- VW Cuts Car Sales Outlook, Pledges Work on Flagging Cash Flow
MDAX:
- Aixtron (AIXA TH) +4.2%
- Aixtron Boosts FY Orders Forecast
- Kion (KGX TH) +1.8%
- Kion Boosts FY Adjusted Ebit Forecast
- Telefonica Deutschland (O2D TH) +0.8%
- Thyssenkrupp (TKA TH) +0.7%
- Lufthansa (LHA TH) +0.1%
- TAG Immobilien (TEG TH) -0%
- Hochtief (HOT TH) -0.4%
- Nordex (NDX1 TH) -1.3%
- Nordex 1H Ebitda Loss EU114.3M
- K+S (SDF TH) -2.2%
- DZ Bank cuts stock to hold from buy: APA
SDAX:
- Aroundtown (AT1 TH) +1%
- DWS (DWS TH) +0.6%
- DWS Raised to Overweight at JPMorgan; PT 38.60 euros
- Wacker Neuson (WAC TH) -1.3%
- Varta (VAR1 TH) -1.5%
- Siltronic (WAF TH) -1.7%
- Siltronic 2Q Sales Meets Estimates
>>> Up
* Cint Raised to Buy at Nordea
* Detection Tech Oy Raised to Accumulate at Inderes; PT 16 euros
* DWS Raised to Overweight at JPMorgan; PT 38.60 euros
* Heidelberg Materials Raised to Buy at AlphaValue/Baader
* Hexagon Raised to Buy at DNB Markets; PT 135 kronor
* SGS Raised to Hold at Kepler Cheuvreux; PT 83 Swiss francs
>>> Down
* Coty Cut to Hold at Jefferies; PT $14
* Covestro Cut to Add at Baader Helvea; PT 53 euros
* DSV Cut to Hold at SEB Equities; PT 1,510 kroner
* Estee Lauder Cut to Hold at Jefferies; PT $190
* Fermentalg Cut to Hold at Kepler Cheuvreux; PT 80 euro cents
* J. Martins Cut to Neutral at JB Capital Markets; PT 28.70 euros
* KMC Properties Cut to Hold at ABG; PT 6 kroner
* Multiconsult Cut to Hold at ABG; PT 165 kroner
* Sulzer Cut to Reduce at Baader Helvea; PT 86 Swiss francs
>>> Initiation
>>> Call
* Elis Results Solid, Stock Attractively Priced: Morgan Stanley
The dollar fell and Asia stocks gained on growing speculation the Federal Reserve is close to the end of its tightening cycle after the central bank said any further tightening would be data dependent. The commodity-driven New Zealand and Australian dollars strengthened the most against the greenback as traders trimmed bets on further Fed interest-rate increases this year. Major equity indexes advanced across the region, with Hong Kong-listed technology stocks gaining almost 3%. The dollar is extending losses as the “market has digested the FOMC decision and the opinion is Powell isn’t more hawkish than before, therefore we’re back to the original peak rate expectation and timeline,” said Mingze Wu, a foreign-exchange trader at StoneX Group in Singapore. “S&P futures are climbing, with the dollar weakening as a result.” There was something for everyone in Fed Chair Jerome Powell’s remarks Wednesday after the Fed hiked its benchmark to a 22-year high, but the market finished the US session betting the next move would possibly be a pause. Traders and Fed policymakers will also have plenty of US data to examine on Thursday, including GDP, personal consumption expenditures and initial jobless claims. US stock futures climbed in Asia after the Dow Jones Industrial Average gained for a 13th day Wednesday — the longest winning run since 1987.
Another driver in the US session was a batch of earnings reports, with results from big tech being scrutinized after shares notched a historic advance in the first six months of the year. Facebook parent Meta Platforms Inc. climbed in late trading after projecting revenue that beat estimates, while eBay Inc. fell on a disappointing profit outlook. XPeng Inc. soared more than 30% Thursday, the best performer in MSCI Inc.’s Asia Pacific Index, after Volkswagen AG plans to invest $700 million in the Chinese electric-vehicle maker. Peers Nio Inc. and Li Auto Inc. also gained on the news. Samsung Electronics Co.’s shares also gained Thursday after the company reported earnings for the second quarter that beat estimates, another signal global tech spending is beginning to recover. Samsung’s results came a day after smaller rival SK Hynix Inc. reported better-than-expected sales. The current situation in Japan, with inflation running above target and wage growth ticking up, is right for the BOJ to spring the YCC tweak surprise, according to Homin Lee, senior macro strategist at Lombard Odier in Singapore. “It’s going to be a good story for the yen,” he said on Bloomberg Television. Oil advanced amid declines in US crude inventories and gold rose for a third day. US after Hours ALGN +12.5%, CLS +8.2%, META +7.7%, LRCX +2% higher on earnings; PI -16.7%, MXL -9.1%, CMG -8.7%, NOW -3.7% lower on earnings.
Nikkei +0,79% Hang Seng +1,20% CSI +0,18% Shanghai +0,10% Shenzen -0,16%
Eur$ 1,1093 CNH 7,1373 CNY 7,1379 JPY 140,20 GBP 1,2948 CHF 0,8612 RUB 89,9916 TRY 26,9560 WTI$ 79,51 Gold 1976 BTC 29,465 ETH 1878
S&P +0,24% Nasdaq +0,58% EuroStoxx +0,39% FTSE +0,24% Dax +0,28% SMI
Macro :
- Fed Raises Rates to 22-Year High, Leaves Door Open For More
Keep an eye on :
- AALB NA : Aalberts 1H Revenue Meets Estimates
- AC FP : Accor Boosts FY Ebitda Forecast
- AIR FP : Airbus 2Q Adjusted Ebit Beats Estimates
- AI FP : Air Liquide 1H Recurring Operating Income Beats Estimates
- AIXA NA : Aixtron Boosts FY Orders Forecast
- AMG NA : AMG Critical Materials NV Sees FY Ebitda $350M to $380M
- APAM NA : Aperam 2Q Adjusted Ebitda Misses Estimates
- ANDR AV : Andritz 2Q Revenue Beats Est.; Sees Significant 2023 Growth
- MT NA : ArcelorMittal Lowers FY Global Ex-China Steel Consumption View
- ARGX BB : Argenx 2Q Vyvgart Sales Beats Estimates
- BANB SW : Bachem 1H Ebitda Misses Estimates
- BFSA NA : Befesa 2Q Adjusted Ebitda Misses Estimates
- BESI NA : BE Semiconductor 2Q Gross Margin Beats Estimates
- BB FP : BIC 2Q Net Sales Misses Estimates
- BNP FP : BNP Paribas 2Q Net Income Beats Estimates
- BUCN SW : Bucher 1H Orders Misses Estimates
- CA FP : Carrefour's French Profit Jump Validates Strategy Drivers: React
- CO FP : Casino 2Q France Net Debt EU5.52B
- DRW3 GY : Draegerwerk Still Aims to Return to Growth, Profitability '23
- ELIS FP : Elis 2Q Revenue Matches Estimates
- ENEL IM : Enel First Half Beats Consensus as New CEO Eyes Efficiency
- EOAN GY : E.ON, RWE Asset Swap Faces EU Top Court Challenge From Utilities
- ECV GY : Encavis, Badenova to Invest €200m in Renewable Energy, Form JV
- ERA FP : Eramet Cuts FY Ebitda Forecast
- ERA FP : Glencore to Pay Eramet $400 Million as Advance in Lithium Deal
- RF FP : Eurazeo SE 1H Net Income EU1.80B Vs. Loss EU96M Y/y
- FCT IM : Fincantieri 1H Revenue EU3.67B
- FRVIA FP : Forvia Boosts FY Operating Margin Forecast
- FUR NA : Fugro 2Q Adjusted Ebit Beats Estimates
- GLEN LN : Glencore to Pay Eramet $400 Million as Advance in Lithium Deal
- GTT FP : GTT Gets Order for Tank Design of 10 LNG-Fueled Vessels
- HEI GY : Heidelberg Materials Forecasts FY Results
- HOLN SW : Holcim Second-Quarter Sales Fall 11%, Missing Estimates
- IDR SM : Indra 2Q Net Income Beats Estimates
- IFCN SW : Inficon Boosts FY Sales Forecast, Beats Estimates
- INF LN : Informa Tech to Buy Channel & Mobility Firm Canalys
- INW IM : INWIT 2Q Ebitda Meets Estimates
- IPN FP : Ipsen Sees FY Core Op. Margin Above +30%, Saw About +30%
- DEC FP : JCDecaux Sees 3Q Organic Adjusted Revenue About +7%
- JMT PL : Jeronimo Martins' 7% Earnings Beat Can't Quell 2H Caution: React
- KARN SW : Kardex 1H Ebit EU43.1M Vs. EU23.8M Y/y
- KESKOB FH : Kesko Narrows FY Adjusted Ebit Forecast
- KGX GY : Kion Boosts FY Adjusted Ebit Forecast
- LEHN SW : Lem 1Q Ebit CHF26.2M Vs. CHF19.5M Y/y
- LIN US : Linde’s Focus May Be on Regions Outside of Europe: Preview
- MDM FP : Maisons du Monde 1H Sales EU543.4M Vs. EU603.9M Y/y
- MBG GY : Mercedes-Benz Raises 2023 Guidance on Improved Car, Van Pricing
- MERY FP : Mercialys 1H FFO EU57.5M
- ML FP : Michelin Boosts FY Total Segment Operating Income Forecast
- ML FP : Michelin CEO Planning More Acquisitions in Years to Come
- MONC IM : Moncler 1H Revenue Beats Estimates
- NESN SW : Nestle Sales Beat Estimates on Higher Prices for Purina, KitKat
- NXI IM : Nexity FY Revenue Forecast Misses Estimates
- NDX1 GY : Nordex 1H Ebitda Loss EU114.3M Vs. Loss EU173.3M Y/y
- OCDO LN : Short-Seller Favorite Ocado Adds £1.6 Billion in Wild Rally
- ORP FP : Orpea 2Q Organic Revenue +8.8%
- QDT FP : Bpifrance Takes Stake of About 5% in Quadient; to Buy More Stock
- RNO FP : Renault’s Margin Rises to Record on Strong Car Demand, Prices
- ROG SW : Roche 1H Sales Misses Estimates
- RWE GY : E.ON, RWE Asset Swap Faces EU Top Court Challenge From Utilities
- SAB SM : Sabadell 2Q Net Income Beats Estimates
- SAF FP : Safran Boosts FY Adj. Recurring Operating Income Forecast
- SPM IM : Saipem 2Q Revenue Misses Estimates
- SFL IM : Safilo and Fossil announce the renewal of their eyewear licensing agreement
- SGO FP : Saint-Gobain Raises FY Margin Guidance, 1H Ebitda Beats Est.
- SCR FP : Scor 2Q Net Income EU192M Vs. Loss EU240M Y/y
- SU FP : Schneider Electric Boosts FY Adj. Ebita Organic Growth Forecast
- SK FP : SEB's Robust Operational Model Supports Margin Upgrades: React
- WAF GY : Siltronic 2Q Sales Meets Estimates
- SOP FP : Sopra Steria Sees FY Organic Rev. at Least +6%, Saw +3% to +5%
- SPIE FP : Spie 1H Revenue Meets Estimates
- SNH GY : Steinhoff’s End Comes as Advisers Collect $495 Million in Fees
- STMPA FP : STMicro Boosts Quarterly Revenue 13% as Auto Demand Drives Sales
- TKTT FP : Tarkett 1H Adjusted Ebitda EU126.1M Vs. EU126.2M Y/y
- TE FP : Technip Energies Boosts FY Adj. Recurring Ebit Margin Forecast
- TEF SM : Telefonica 2Q Oibda Meets Estimates
- TOD IM : Tod's 1H Revenue Meets Estimates
- UCB BB : UCB 1H Core EPS Beats Estimates
- UMG NA : Universal Music 2Q Revenue Beats Estimates
- UNI SM : Unicaja 2Q Net Income Beats Estimates
- VACN SW : VAT Sees FY Ebitda Margin Below 32% to 37%
- VASTN NA : Vastned 1H EPS EU0.95 Vs. EU0.98 Y/y
- VCT FP : Vicat 1H Net Income EU94.0M Vs. EU78M Y/y
- VIV FP : Vivendi Enters Put Option Pact With Figaro for Sale of Gala
- VONN SW : Vontobel First Half Profit Beats Estimates Amid Client Inflows
- VOW GY : VW’s Xpeng Deal Is Evidence of China’s Growing Dominance in EVs
- VOW GY : Volkswagen Earnings Miss on Hedging Effects, China Pressure
After Hours Summary: ALGN +12.5%, CLS +8.2%, META +7.7%, LRCX +2% higher on earnings; PI -16.7%, MXL -9.1%, CMG -8.7%, NOW -3.7% lower on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: ALGN +12.5%, CLS +8.2%, META +7.7%, ENVX +7.6% (also establishes R&D center in India; also sign manufacturing deal with YBS Intl), NXT +7.3%, CASH +4.6%, IMAX +4.3%, TNET +3.5% (also authorizes an incremental $1 bln for share repurchases), CMPR +3.4%, ASGN +3.3%, WU +2.5%, CNMD +2.4%, EG +2.3%, AGI +2.2%, AR +2.2%, NTGR +2.1%, AEM +2%, CLB +2%, LRCX +2%, TER +1.8%, NOV +1.6%, VICI +1.6%, MC +1.3%, MYRG +1.2%, ACGL +1.1%, SLM +0.9% (also acquires several key assets of Scholly), CHDN +0.7%, LSTR +0.7%, QS +0.7%, AM +0.6%, STAG +0.2%, WH +0.1% (also increases share repurchase authorization by $400 mln), BRKL +0.1%
Companies trading higher in after hours in reaction to news: NOA +3.5% (to acquire MacKellar Group for an $395 mln; also reports earnings), VRCA +1.8% (closes $125 mln debt financing), AJRD +1.4% (LHX says FTC will not block AJRD acquisition; expects to close deal on or about July 28), ACN +1% (NOW, NVDA and ACN launch AI Lighthouse), LMT +0.7% (awarded $489 mln US Navy contract modification), MDWT +0.6% (shareholders approve takeover), HTZ +0.3% (names new CFO), DKL +0.2% (increases dividend), ALSN +0.1% (wins US Army contract)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: OII -23.5%, PI -16.7%, EYE -9.3%, MXL -9.1%, GGG -9%, CMG -8.7%, NOVA -7.1%, LC -6.9%, CSL -6.7%, EW -6.3%, PLXS -5.2%, EBAY -4.5%, PTEN -4.5%, RJF -4.5%, ESI -4.3%, IEX -4.2%, VKTX -4.1% (also files mixed shelf securities offering), VSTO -3.8%, NOW -3.7% (also launches AI Lighthouse with NVDA and ACN), URI -3.6%, ATEN -3.6%, MOH -3.5%, HP -3%, PTC -2.9% (also names new CEO), FIX -2.5% (also increases dividend), ORLY -2.5% (also names new CEO), TROX -2.5%, ICLR -2.4%, AGR -2%, FTAI -2%, STX -2%, VMI -1.8%, WFG -1.8%, MAT -1.6%, SEIC -1.5%, EIG -1.4% (also authorizes new $50 mln share repurchase program), ROL -1.2%, EQC -1.1%, PEGA -1.1%, PDM -0.7%, FLEX -0.6%, GFL -0.6%, MEOH -0.5%, AWK -0.4%, CHE -0.3%, NLY -0.2%, NEU -0.1% (also increases dividend)
Companies trading lower in after hours in reaction to news: TAK -1.3% (NEJM publishes data from phase 2 study of TAK-994), BBIO -1.2% (stock offering by selling shareholders), FLR -0.7% (awarded contract by Mitsubishi Chemical), AMZN -0.2% (Amazon Fresh grocery store chains to eliminate "hundreds" of employees according to WaPo), NVDA -0.1% (NOW, NVDA and ACN launch AI Lighthouse), NNI -0.1% (awarded GSA schedule to expand support for govt agencies)
Moncler Group Revenues Exceed 1B Euro Mark in First Half
Sales climbed 24 percent in the first six months of the year, compared with the same period last year.
MILAN — For the first time in its history, Moncler Group revenues exceeded the 1 billion euro mark in the first half of the year, chairman and chief executive officer Remo Ruffini underscored proudly Wednesday.
The group reported revenues of 1.13 billion euros in the first six months of the year ended June 30, climbing 24 percent compared with 918.4 million euros in the same period in 2022.
Ruffini said the milestone was a “testament to the great teamwork, innovative thinking, and customer-centric approach that defines our group. At Moncler, we are driving a new level of engagement with our customers all around the globe, leveraging all the dimensions of the brand. At Stone Island, we have just started the second chapter of the evolution of this unique brand under the leadership of the newly appointed CEO.”
As reported, Triefus, previously CEO of Gucci Vault and Metaverse Ventures and senior executive vice president, corporate and brand strategy at the Italian luxury brand, joined Stone Island on June 1.
Asked about Triefus’ purview and tasks during a call with analysts at the end of trading in Milan where the group is publicly traded, Ruffini defined Stone Island as “an amazing brand very close to our mentality and vision,” and that after an initial control of its distribution, the second phase will focus on the direct-to-consumer channel, “changing the culture in the company, a most difficult” step, and also on raising the brand in “a more premium world” with new stores. “We have very clear ideas and we are very optimistic that we can develop this journey in two or three years.”
Luciano Santel, the group’s chief corporate and supply officer, was asked about other potential merger and acquisition opportunities, given Moncler’s strong net financial position of 470.7 million euros. “Stone Island is an amazing brand, we are building the team, also with a new CMO and digital director, but we bought it because of the love for the brand and we were able to connect the two families. Now there is no specific project and no thought of an acquisition, which may happen in the future but independently of the cash.”
If it were to happen, “it would have to be like with Stone Island,” Santel added.
Santel also responded to a question about peer luxury companies buying into the supply chain, saying that the group’s most important investment last year was building the second production factory in Romania to double its manufacturing capacity, and that no acquisition was on the horizon. The group did buy two small outerwear suppliers at the end of last year, however, and Santel said it continues to look at potential acquisitions, in knitwear for example, while investing in its own factories.
“While remaining mindful of a still-uncertain and complex environment, we will continue to invest in our organization and in our people to enable our brands to express their full potential,” said Ruffini.
In the second quarter, group revenues totaled 410.2 million euros, up 26 percent at constant exchange rates compared with the same period of 2022. In the second quarter, the Moncler and Stone Island brands reported revenues of 330.2 million euros and 80 million euros, respectively.
In the first half, Moncler brand revenues totaled 935 million euros, up 29 percent, with a strong double-digit growth continuing in the second quarter, up 32 percent at constant exchange rates, accelerating sequentially compared to the previous quarter. Moncler’s direct-to-consumer channel rose 45 percent at constant exchange in the second quarter driven by solid double-digit growth in all of its three main regions.
Revenues of Stone Island amounted to 201.6 million euros in the half, up 4 percent compared with the same period of 2022. The second quarter was up 5 percent at constant exchange rates compared with the same period of the previous year, in line with the first quarter, driven by Asia and the Europe, Middle East and Africa region.
In the first half, group net profit totaled 145.4 million euros, compared with 211.3 million euros in the first half of 2022, which included an extraordinary tax benefit of 92.3 million euros for the Stone Island brand tax value realignment.
Group operating profit amounted to 217.8 million euros, compared with 180.2 million euros in the previous year.
During the year Moncler will further strengthen the three dimensions of the brand — Moncler Collection, Grenoble and Genius. The latter is entering a new phase of co-creation, as seen in London last February. Moncler Grenoble will continue to strengthen its awareness, with dedicated marketing initiatives and a wider and more complete performance-oriented collection, said chief brand officer Gino Fisanotti.
“There is great potential for Grenoble, and our strong summer collection proved we are becoming relevant year-round,” he said, noting the brand had launched its first summer campaign. Speaking of the expansion in footwear, he said sales of the category were up high double digits in the second quarter.
A key goal is to develop the Stone Island brand at an international and d-to-c channel, said Roberto Eggs, chief business strategy and global markets officer. In the year the brand will continue to strengthen its position in core markets, such as European countries, and increase its penetration in less mature regions with high potential.
At the group level, Eggs said he had seen a strong rebound of tourism for the Chinese cluster, which has become the first nationality in Europe now. Koreans are the second in Europe, aligned with the Americans.
Eggs was asked about his contract at the group, perhaps following a report that he was seen in the industry as a potential successor for Francesca Bellettini at Yves Saint Laurent. But he said his contract was “aligned with his mandate and [he is] fully committed to Moncler and the group.”
Moncler sales in Asia in the half rose 37 percent to 456.7 million euros, representing almost 49 percent of the total, including an acceleration of 55 percent in the second quarter. The Asia-Pacific region recorded a strong sequential improvement, favored by an easy comparable base in mainland China, whose performance in 2022 was negatively impacted by the lockdowns that caused the closure of around a third of Moncler’s local stores in April and May. June had seen a strong improvement with the reopening of all the stores. Japan and Korea continued to record solid double-digit growth in the second quarter.
In the EMEA area, revenues grew 29 percent to 340.6 million euros, accounting for 36.4 percent of the total, with an increase in the second quarter of 30 percent, supported by demand from local customers and a continued improvement in tourist flows, said Eggs. American, Chinese and Korean customers were the strongest contributors to tourist purchases in the region.
Revenues in the Americas recorded a 9 percent gain to 137.6 million euros in the first half and declined 5 percent in the second quarter, due to the impact of the conversion of Nordstrom from a wholesale to a hybrid business model, which drove the wholesale channel to negative territory in the region in the quarter, Eggs explained.
In the first half of 2023, the d-to-c channel recorded revenues of 757.5 million euros, up 36 percent. Revenues in the second quarter rose 45 percent, supported by strong double-digit growth in all three regions, with Asia outperforming. The direct online channel also continued to grow by double digits.
In the first half, like-for-like sales climbed 34 percent.
The wholesale channel reported revenues of 177.5 million euros in the first half, up 5 percent.
As of June 30, Moncler had 257 directly operated stores. The brand also operates 59 wholesale shops-in-shop.
Stone Island reported sales of 145.6 million euros in the EMEA region, up 5 percent on the same period last year. In the second quarter, revenues grew 8 percent, driven by a positive contribution from both distribution channels, with d-to-c outperforming.
Asia reached revenues of 38.8 million euros in the first half, growing 17 percent. In the second quarter, the region grew 13 percent, boosted by a solid performance in mainland China and Japan, and to some perimeter effects following the 2022 wholesale to d-to-c conversions in Japan. The Korean market’s performance was softer, also due to the ongoing changes in the business model.
The Americas were down 24 percent. The second quarter saw a decline of 31 percent, as wholesale performance continued to be impacted by a softer business trend and a more cautious approach from department stores.
The wholesale channel recorded revenues of 127.8 million euros in the first half of the year, down 4 percent. In the second quarter, revenues grew 2 percent, despite the impact of the 16 Japanese conversions from wholesale to d-to-c in 2022, the negative performance in the Americas and the strict volume control adopted in the management of this channel.
The d-to-c channel grew 21 percent to 73.7 million euros in the first half, representing 37 percent of the total. In the second quarter, revenues in this channel were up 9 percent, mainly due to solid double-digit growth in EMEA, APAC and Japan, which more than offset more difficult trends in the Americas and Korea.
As of June 30, Stone Island had 74 directly operated stores, an increase of three units compared to the end of March, and 19 mono-brand wholesale stores, in line with the first quarter.
At the group level, in the first half, marketing expenses amounted to 101.6 million euros, representing 8.9 percent of revenues, compared with 5.4 percent in the first half of 2022, due to a different phasing of marketing activities. Santel said he expected an incidence on revenues of around 7 percent at the end of the year, in line with the previous fiscal year.
In the first half, capital expenditures totaled 69.5 million euros, compared with 36.5 million euros in the first half last year. Investments related to the distribution network amounted to 37.9 million euros, of which more than half were dedicated to renovation and expansion projects. Investments related to infrastructure were equal to 31.6 million euros, mainly related to IT, production and logistics.
As of June 30, the net financial position stood at 470.7 million euros in net cash compared with 818.2 million euros at the end of December 2022 after a payment dividend of 300.3 million euros.