Buy Signal on Moncler (MONC-IT)

We had an Enter Long signal on October 2nd 2020, triggered by our system on MONC-IT, Moncler SPA the Italian Luxury/retailing company.

Moncler is a €9 Bn market cap, an Italian luxury outwear brand which specializes in luxury down jackets (40% market share). In addition, the group offers winter clothing (coats, pants, polo shirts and pullovers), shoes, bags and accessories (gloves, hats, scarves and collars). Revenue are mainly derived from retail distribution (77% of revenues) via an owned network of 209 points of sales located in Italy (19), Europe-Middle East-Africa (56), America (30) and others (104) and wholesale distribution (23% of sales) via a network of 64 points of sale.
Moncler is globally present, with 41% of revenue in EMEA, 16% in the Americas, and 43% in Asia.

Moncler is a regular growth story -delivering above average growth as compared to the sector- which is now shifting towards the online potential of the business with the goal to reduce reliance on the classical seasonal fashion cycles along with the shows and marketing that comes with it.

Moncler has a strong balance sheet (c.€480M net cash at the end of 2020) and is expected to exceed 2019 sales figures in 2021.

Short term catalyst: New digital approach, European recovery.

This signal looks consistent with the strong momentum on the European Luxury/Retail sector.