Good evening. This is the CocaRusco conference operator. Welcome and thank you for joining The Montclair Group First Half twenty 21 Financial Results Conference Call. As a reminder, all participants are in a listen only mode. After the presentation, there will be an opportunity to ask Questions.
Nineteen. At this time, I would like to turn the conference over to Ms. Paula Durante. Please go ahead, madam.
Nineteen. Thank you, and good evening, everybody. Thank you for joining our call today on Moncler Group First half 20 21 financial results. Eighteen. Before leaving, as usual, the floor to our Chairman and CEO, Ramon Rusini, let me briefly introduce you to the other 2 speakers on today's call, Roberto Heggs, Moncler Group Chief Business Strategy and Global Market Officer and nineteen.
San Antonio Sante, Moncler Group Chief Corporate and Supply Officer. In addition, we also have today with us Carlo Rivetti, Stone Island Chairman and CEO Gino Fizonotti, nineteen. Timon Clerc, Chief Brand Officer and Andrea Thieghi, Montclair Group's Senior Director of Retail Worldwide. Nineteen. As usual, before starting the presentation, I need to remind you that this presentation may contain certain statements that are neither reported financial results nineteen nor other historical information.
Any forward looking statements are based on Moncler's current expectations and projections about future events. Nineteen. By their nature, forward looking statements are subject to risks, uncertainties and other factors that could cause results 2 differ even materially from those expressing or implied by these statements, many of which are beyond the ability of Moncler nineteen. Let me also highlight that given the nature of our business, interim results can be influenced by seasonal effects nineteen. And therefore, cannot be taken as a proxy for full year trends or results.
And finally, I just highlight that press has been invited nineteen. Let me now hand over to our Chairman and CEO, Mr. Raimo Ruffini.
Nineteen. Good evening, everyone, and thank you. Thank you for attending Montclair Group First half conference call. Nineteen. Tonight is a bit later than usual, so I will try to be short and focused.
First of all, nineteen. You might have noticed that I said Moncler Group. I am excited because this is the first time Moncler results include Stone Island. Now we are a family and a very busy family. I'm absolutely happy with many things done in the 6 months.
We started to Interventional Markets. Meanwhile, at Moncler, we continue working on the many other projects we have on the table. Nineteen. In May, we have successfully internalized e commerce in EMEA. I have to say that I was a bit scared There's something could go wrong.
But once again, my people did not disappoint me. Nineteen. And in July, we also internalized Japan. Last but not least, I'm extremely nineteen. Proud of the results that the group reported in this still very challenging environment.
Let me comment revenues compared to 2019, which I believe should help you understand eighteen. Better the underlining trend. In the 1st semester group revenues rose by 11% With Moncler standalone showing plus 1 in acceleration in Q2, which rose by 5%. Nineteen. July started very well with a further improved trend compared to Q2.
EBIT reached €93,000,000 With a 15% margin, better than our own expectation. In addition, very importantly, We continue to have a solid net cash position even after the Stone Island deal and The payment of the dividend. And now looking to the future, unfortunately, the sanitary nineteen. I believe this is a reality we have to coexist with. But we are ready.
We have 2 brands. We have the product, the ideas, nineteen. The project, flexibility and even more the people to make it happen. And talking about people, I ask Gino Fizzinotti, Montclair, new Chief Brand Officer, who joined this call to introduce himself. Nineteen.
As you know, building a strong brand has always been my obsession. Nineteen. I'm sure with these newly created roles, we will make it the Moncler brand even stronger. Nineteen. Working together with Gino, we'll have the opportunity to go even deeper in our own offense of Become a consumer centric organization.
The obsession in connecting and engaging with the consumer through an extraordinary product eighteen. And with the unique experiences, we allowed us to bring Montclair to the new eyes, While exploring and influencing beyond the traditional approach for the luxury industries. I think Moncler is set and ready for future, Ready to redefine luxury as we create a new phase of brand engagement and business growth. This is why I believe that Gino with Roberto and Luciano nineteen will become key in driving Montclair's next phase. Thank you and I'll leave the floor to Gino,
nineteen. Okay. Thank you, Mr. Ruffini, and thank you very much for the nice words and hello to everyone. So nineteen.
Before we jump into this quarter results, I just wanted to take the opportunity to say hello to everyone and share a few words knowing that this is my 1st call with all of you. I have to start saying that I'm extremely happy to be part of this family as I learned to call it here. But more importantly, I'm really excited about the incredible potential of this brand. And I have to say this is definitely was and is the main reason why I have decided to join the Montclair Group. And I have to say that after 50 days with the organization, with the company, I can clearly see, but more importantly feel eighteen.
It's very clear how much this team have done in prepping this brand for the next phase of growth. Nineteen. And I have to say, digital experience, I love my many years at Nike before, but more importantly around the globe, working in markets from China eighteen. To emerging markets from Europe to the United States to really help this brand to the next step. As Mr.
Ruffini said, eighteen. Creating a new phase for the brand engagement and business growth while defining what modern luxury is and stands for. In nineteen. Sure. I really can't wait to be part of the next phase of this incredible brand, more importantly to this incredible family.
Now I think it's nineteen. Time to truly go what truly matters for today, which is Roberto Luciano will share with you the latest results of the Moncler Group. Thank you very much.
Nineteen. Thank you, Gino, and welcome into the family. Let me come back to the result of the H1, starting with the nineteen with the 2021 H1 key facts. We'd like to highlight 3 main facts of the first half of the year on which we have been working. The first, nineteen.
As mentioned by Remo, it's Stone Island. As we have started to consolidate the results since the 1st April, the second where we are working and supporting the Stone Island team, the team of Luciano and my team too. It's the integration process nineteen. That is ongoing, mainly focusing at the start on the IT, finance and supply chain, but we also The kickoff of the retail excellence project that started last week. So is the premises or something that is very promising?
Eighteen. 2nd point also highlighted by Remo, which is the Montclair e Commerce. He said he was fearing to move the web nineteen. I think we were a little bit scared too, especially because EMEA is a much more complex reality than the U. S.
Market. That was internalized last September. 1st of all, because we cover close to 30 countries with the internalization of the eighteen. EMEA, 22 different payment methods, 2 warehouse now that we have also the, let's say, the twenty. Presence in the U.
K. With the Brexit. And we have also to do cross border, which is was something that we are not doing in the U. S. So A complexity that was very high, plus the launch of the new website that we successfully did.
We are going to come back probably on this, but all the key metrics I've improved double digit on double digit base since we went for the internalization. Finally, Very important still for us is the Montclair Genius project where we had 4 launches, let's say, 3 launches during the first half, nineteen fifty two in January, G. W. Anderson in March and Craig Green in April. And we decided to postpone the launch of fragment that was initially planned for June into July.
Two main reasons for that. First, we wanted to have also something twenty. Strong to support the launch of the e commerce in Japan, which we did and we launched it with the launch of Fragment. And secondly, the stores in Japan, which is the main market for the Moncler fragment launch, were twenty. Closed during the weekends, during the month of June, especially in Ozark and in Tokyo.
So we decided to post it to postpone the launch By 1 month. So we did it at the beginning of July. Let's move to the results of the H1 with the key highlights. 1st on the revenue side, we reached EUR 621,000,000 for the first half of the year, which is a +57 percent at constant exchange rate versus 2020 and plus 11% versus 2019 In acceleration as we did a +34 percent in Q2. If we look also at the result of Q2 versus 2020, we reached 178% growth in during the Q2.
Revenues of Moncler, they reached €565,000,000 plus 43% at constant exchange rate versus 2020, plus 1% for versus nineteen for the 1st semester, but in Q2, we reached plus 5%. Revenues of Stone Island that are integrated and consolidated since the first So April reached €56,200,000 You're also double digit growth during the quarter for Staten Island. The EBIT reached €92,800,000 with the margin on sales at 14.9% versus an EBIT loss of €35,000,000 In H1 2020, net profit reached €58,900,000 with a margin on sales 9.5 percent versus a net loss of €31,600,000 in H1 2020. And finally, the net financial position Reached EUR 233,900,000 of net cash versus the EUR855,300,000 that we had at the end of 20. But this is, of course, integrating the acquisition of Stone Island.
If we move to the results Of Moncler only, only the Moncler brand by geography. The H1 2021 revenues reached EUR 5 €5,000,000 which is a +43 percent versus 2020, a +1% versus 2019. Q2 accelerated with the plus 5% versus 2019, driven by Americas, Chinese Mainland, Korea And EMEA. EMEA reached a fantastic minus 11%, knowing that we didn't have what is usually making 50% of the business during Q2, which are the 2 is really, let's say, a result that is really, really encouraging. Local clientele continued to grow Solid double digits.
Asia, which includes APAC, Japan and Korea, has been best performing area with a plus 9% Versus Q2 twenty nineteen. And in Q2, the Chinese mainland accelerated. They almost doubled versus 2019, While Japan has been negatively impacted as already mentioned by the reinforced measure of COVID 2019 with the closure of the stores during the weekend. Korea continued to post outstanding growth and it has been the region that has been growing months after months double digits since January 20. EMEA revenues has been penalized by the lack of travelers, partially offset, as I was mentioning, The growth on local demand, we had plus 47% in the growth of local demand in Europe.
In Q2, EMEA revenues decreased by 11% versus 19. UK, Germany and Spain outperformed. Italy in Q2 reached €21,000,000 which is minus 9% versus nineteen. And the Americas strongly accelerated in Q2 in all channels with revenues up 40% versus 2019. If If we move to the revenues by channel, is the new denomination that we are using now internally and that we also have changed in what nineteen.
We're reporting we call it DTC. DTC that was previously called retail is now integrated results of retail plus our own online. DTC revenues reached EUR 4,000,000 in H1 2021, which is a plus 44% versus 2020 and a minus 2% versus 2019. In quarter 2, DTC revenues nineteen. I've been supported by improved local demand, but penalized by the worsened performance in Japan and by the planned postponement of Jynous twenty.
The launch of July, which is also contributing to the very good start that we have had in the month of July. Comp rose 41% in H1 2021. Online continued to strongly outperform with a very strong triple digit growth versus 2019. EMEA E Commerce internalized in May, 20. Japan in July, new website launched worldwide also in May 2021.
Wholesale revenues Rose by EUR 147,000,000 in H1 2021, which is a +42% versus 2020 And a plus 10% versus 2019, driven by an outstanding request of reorders mainly from the U. S. Market, but not only and from retailers. The level of sales through is also higher this year than the one we had in 2019. So it's very sound growth.
In Q2 wholesale rose by 29% versus 2019, driven by some growth in particular in North Americas. To conclude with Stone Island. Stone Island revenues rose by 56 point €2,000,000 in Q2 2021. The result of the Q1 2021 eighteen. Not consolidated, but that we have reported are EUR 88,100,000 EMEA contributing to 77% of total revenues with Italy nineteen.
Accounting for some 20%, followed by the most important markets for the brand, which are U. K, Germany and the Netherlands. Nineteen. Stone Island wholesale business contributed to 72% of the total revenues. Direct to consumer performance nineteen.
Driven by some openings and good organic growth. Spring summer 2022 sales campaign shows very strong results. Nineteen. This is a comment I'm making for Sonaele, but it's absolutely valid as we have increased our results in the springsummer campaign 2022 for Moncler Versus the one we had in 2019, which was the campaign spring summer 2020. To conclude with some highlights on key projects on Sun Island, as I was mentioning at the beginning, the focus for 2021 eighteen.
Has been to set the basis for delivering compelling long term results with integration that has started by corporate nineteen. We focus on IT, logistics and finance and also with distribution where we have been 2. Work with the agent and importers that we have in the U. K. And in Korea to plan to go and manage it more nineteen.
As we were mentioning already in the call in December last year. In terms of total number of stores, We had until the 31st March 2021 just we were just reporting the stores of Montclair, which were 21 stores for the retail part and 63 Shop in the Shop for Montclair. Nineteen. In the meantime, we have been opening 3 new stores with Moncler in mode eighteen. In China, we think Bo and Kew and with Hong Kong Ocean Terminal on top of Dalian Olympus 66.
Nineteen. And regarding Stone Island, they have already opened the 5 doors they have planned for this year. We nineteen. Stores in Paris with Galeries Lafayette, Mandar Valet, but also stores in China with Y 18. The total reported now is 244 retail stores, 224 for Moncler, 30 for Stone Island and 119 Shop in the Shop, 63 for Montclair and 56 for nineteen.
I'm leaving the floor to Luciano to comment the financial results. Okay.
Thank you, Roberto, nineteen. And good afternoon, everybody, and thank you for attending our call today. We are now at Page 11, where we report nineteen. A slide with the bridge between our income statement reported and the income statement adjusted. Nineteen.
The adjustments are associated with the Sonae transaction and specifically to part of the purchase price allocation that affects nineteen. The income statement for EUR 6,400,000 and the sum of the transaction costs for EUR 3,600,000. Nineteen. For your information, we reported Page 20 the detail of the purchase price allocation. Specifically for this slide, I would leave The technical explanations of this item to your original questions.
I would comment eighteen. The adjusted income statement that is reported at the following page, at Page 12, where we report twenty. As usual, the results of the first half of this year as compared to the first half of twenty twenty. The top line, As Roberto said and commented was EUR 622,000,000 with As compared 54% growth as compared to last year. Gross margin of 75.2%.
The twenty. Comparison with last year is not particularly meaningful because you may remember that last year we posted nineteen. EUR 30,000,000 extraordinary write down of our inventory after excess of inventory associated with the spring summer of last year due to the lockdown. If we look at the gross margin, We reported in 2019, the gross margin was in 2019 first half 76.7%. Gross margin we reported this year is slightly lower, but it's totally due to the contribution of the eighteen.
Stone Island Business, in the Q1, we consolidated that business. Stone Island Business that is mostly wholesale business with Lower gross margin due to their business model. If should we Look at the gross margin for Moncler only and gross margin for Moncler is totally in line with 2019. Selling expenses are 37%, not particularly meaningful compared with the last year. In 2018, selling expenses nineteen.
We're 36.3 percent. So we are a little higher, but still because of the closures that affected our retail business in Europe mostly in the Q1 Of this first semester and the impact of the second quarter. G and A 17.2 percent In 2020, 19.8 percent. In 2019, about 15%. G and A are higher than 2 years ago, but this is due to the fact that over the past 2 years, as you know, we invested a lot and we are nineteen.
Still investing a lot in our organization. All these expenses are associated with investments in human capital in all the The critical departments of our trusted digital because nineteen. Only a few years ago, our business department was made of just 2 people. And now in order to face nineteen. The underlying business that Roberto and Rufini mentioned before, we needed and we developed a pretty solid organization, nineteen.
Of course, with additional cost and also with some double counting expenses due to the fact that we started To invest in the organization way before the go live of the internalization. Nineteen. But not only digital, we are still investing in our technical department because it's the essence of our product, of nineteen. And of course, in Information Technology, which is needless to say essential for our development. Having said that, the 17.2% is higher couple of points than 2019, but we expect this nineteen.
This is due to low down a little bit in the second half of the year. Marketing, 6.1%. Our guidance Yes, of 7% for the year end is still there. And we are spending less than last year, nineteen. And which again is not particularly meaningful, but also a little bit less than 2019.
The reason is that the most important chapter 1,000. Our marketing budget is will be the digital event that until last year It was held in the February and this year for the first time will be held in September. So the delay of these nineteen. This will be reported in the second half of the year. Overall, our operating margin EBIT is 14.9 percent in line with our plan.
Financial, nothing to say, eighteen. Yes, totally associated with the IFRS 16 and the 29.1% tax rate, unfortunately, nineteen. Back to normal, back to normal because in 2019, we still had the benefit of the patent box and 1st year, not in the first half, but at the end of the year, our tax rate was 15.1%, because we have the benefit of the Alignment of our trademark cost. So 29% is more or less also our expectation Sure for the year end. Okay.
We can move now to Page 13 where we report the CapEx. CapEx At the end of the first half, we're close to €50,000,000 with an 8% On revenues, higher in absolute value than last year. But eighteen. We made a decision right after the pandemic situation to cut 30 percent our budget of our CapEx. The $50,000,000 we are spending we spent in the first half of the year eighteen.
Again associated mostly to the retailer network to the stores that have been opened and mostly to the stores That are still not open, but will be open in the second half of the year, some very important stores. And eighteen million to our information technology infrastructure, the online project eighteen. So we already discussed about and logistics infrastructure. Page 14, we report net working capital. Net working eighteen.
Capital shows 9.6% higher than last year and higher also than 2 years ago, but nineteen. This is because of the contribution of the St. Helens business, so that again is mostly wholesale business model. And as a consequence, a significant part of the revenues we reported nineteen. Have been generated in June in the wholesale channel for the upcoming fall winter season and have been translated into receivables that Make the receivable line significantly higher than in the past.
All the other items, inventory specific and accounts payable are totally In line with the year before and 2019. And let's move now to Page 15. We reported the financial nineteen. Financial position that has already been mentioned by Roberto is €234,000,000 positive cash, nineteen. Of course, much lower than the 800,000,000 we reported in December, but in the first half of the year, in March specifically, nineteen.
And we had the cash out for the Sonae transaction net of 551,000,000 nineteen. Okay. Let's move now to Page 16, where we report the balance sheet statement that normally I don't comment. But at this nineteen. For the first time, I think it's very important.
It's important to comment a couple of lines of the intangible assets that nineteen. You may see last year they were €400,000,000 and now we report €1,700,000,000 and this is totally due to the purchase Price allocation to the Stone Island brand for €775,000,000 and Stone Island goodwill for €4 47,000,000 net of 222,000,000 of deferred taxes that eighteen. Page 17 now, cash flow nineteen statement. Nothing to add. All of the numbers I already commented During the presentation, only a comment on the change in other liabilities that is negative as much eighteen.
We still had the cash benefit of the Patent Box. Free cash flow, nineteen. Nothing to add. Below the free cash flow, of course, 2 important items, dividends that we paid this year for EUR 118,000,000 and Nothing last year. As you may remember, we made the decision to withdraw the dividend payment.
And again, The Stone Island transaction cash out for EUR 551,000,000 Okay. Let's move now 2. To the Page 18, the last page, but probably most important also for the future of the brand, Let me say for the award, I mean, which is the sustainability chart, where first of all, I have to comment on the integration that is we eighteen. We are implementing with the Stone Island because from now on, starting from the year end, we will report Our sustainability plan including only one set of objectives for Moncler and Forton Island. The activity to work together with the Schneider team is nineteen.
Very productive. I mean, we found a very a lot of passion on this matter and also Competencies. So we are very confident to develop a great work together In the new family. We then report our 5 pillars and the 5 pillars eighteen. That's still associated to Moncler brand only.
But again, very soon by the year, that is still as Related to both brands. 1st is climate change. We have our target to The carbon neutrality at the Scope 1 this year and also to increase the energy Coming from renewable sources up to 70%,
again by the nineteen.
Secularities, something very important to highlight is that we have implemented a technology together nineteen. With the technology firm, German technology firm to recycle our finished products and to extract Down, certified down that is being recycled into the new product, into the new down jacket, the The new outerwear that we are producing. So this is a very, very interesting and exciting project. Also we are using more than before the scraps, nylon scraps from our production process. And also So important to highlight that we have implemented a service A repair service for our customers.
Nineteen. They are invited to return their product to bring They are the product that they all the jackets that may be broken for several different reasons and we offer best service to repair these Yes, I mean, we don't aim to change the world with this service, but for sure, it's something very nice, very nice to nineteen. And then, I mean, our protocol this protocol that has been expanded to a social and nineteen. And not only to the animal welfare and the diversity and inclusion council that as you know has been In the beginning of this year, we have then implemented an activity in the survey with the help of nineteen. McKinsey, in order to understand, to monitor the perception of our people This is very important topic.
And last but not least, we are proud to say that we have offered to the community 1600 eighteen. Mostly dedicated to the vaccine hub in Milan that has nineteen. You've been helped and supported by Moncler. So many topics and we are now nineteen. Thank
you. Operator, you can open up the Q and A questions. Thank you.
Nineteen. This is the Chorusco conference operator. We will now begin the question and answer session. Star and 1 under touchtone telephone. Nineteen.
The nineteen. First question is from Elena Mariani with Morgan Stanley. Please go ahead.
Hi, good evening everybody and welcome
to the Staten Island team.
A couple of questions from me. The first one is a quick one and it's about the comment you've made on July. You said that July started well with the trends improving versus the Q2. Is this eighteen. True for both retail and wholesale.
And what are the key drivers of this? I mean, which geographies, which nationalities? Nineteen. And how should we think about the development of revenues in the Q3? Question number 2 is on Stoneyland.
Nineteen. I just wanted to understand a little bit better the seasonality of the business. I mean, we're still familiarizing with it. Nineteen. How should we think about the development of sales and EBIT in a normal year?
So leaving COVID aside because I assume that you had nineteen. A pretty meaningful change in direction between Q1 and Q2. So how should we think about Q3 and Q4 in a normal year? Nineteen. And thirdly, have you started already to develop retail rollout plan for Staten Island?
So nineteen. How are you thinking about the brand strategically? And how should we expect the revenues and retail network to develop over the next 2 to 3 years. Thank you.
Good evening, Helena. Thank you nineteen. I will answer to question number 1 and 3, and I will leave Luciano answering to the seasonality of Ton Island. Regarding the key drivers, clearly, the fact that nineteen. We are up and running with our own e commerce is definitely helping.
So we can expect So strong growth from e commerce coming from the quarter 3 and especially also the launch of Fragment has been very helpful to nineteen. For the launch of the new website. So I think we can expect the online to perform well. We can expect from the retail side To continue performing in Americas because it has been Q2 has been a very good quarter and is continuing not only in retail but also nineteen. On the retail side, where we had a lot of reorders, we can expect also China continue to our 4.
Maybe we'll come back to China later on, but Q2 has been extremely good for China and we have strong development eighteen. Thanks for our Chinese markets. Korea continues to perform very well and also Fragment is a collection that is very well appreciated and we are now going to launch The 2nd theme of the fallwinter collection. So all in all these regions, we are confident. We see also in Europe return, Small return of the travelers intra Europe.
Of course, we don't see a lot of travelers or, Let's say, visitors coming from Asia, but we're starting also a little bit of Americans in Europe. So I'm more even more confident for Europe for the Q3 and especially for the Q4 because Q4, We know that it's not really dependent it's much less dependent from tourists. Usually, it's on the weight of tourists is only 30%. And we have seen last year A strong rebound on the Q4 with our local clients. So these are the drivers that we see For the month of July and also with, let's say, the expansion of the fallwinter collection with the different themes that are going to come on July, August September, I think we are confident.
And again, for wholesale, the result of this are extremely good, better than 2019. So there is a strong nineteen. Thanks for our product coming we've been requested by our wholesale account. Nineteen. The part of the Itelis is also performing very, very well in line with the performance Of our e commerce.
So this also it's another positive sign and we see their strong request. Regarding the rollout plan for Stone Island, I think we have 1st to fix or adjust some of the, let's say, the way to operate stores. And this is why we launched the retail twenty two. We have a pilot that is supposed to start in Q4 of this year in Germany and then with the rollout phase for 22. And we have also we're also working on enhanced project and design For our stores in with Stone Island.
So we are getting prepared, but the opening for 2021 First line are done. And we are working already on the plan for 2022.
Okay. So, Elena, thank you for your question about the seasonality of Stone Island, which is needless to say but important to highlight nineteen. Significantly different from the Sumitomo for two reasons. First, because product is different, But also because the business model of Moncler is, as you know, mostly retail business model of Sonae Island is still mostly wholesale. So eighteen.
So just as a rule of thumb, of course, I take this number as an overall guidance. But you can assume that the first half represents may eighteen. About 45% of the total business, we've done about 30% in the first quarter, 15% Q2. And the second half, 35% in Q3 and percent. 90% Q4.
More or less, this is an overall assumption that you can make. Of course, we don't have the eighteen. This is a reasonable assumption you can make.
Thank you. And also in
Sorry. Sorry, sorry. Just one quick follow-up. Yes?
No, because your question was also about operating margins of debt.
Yes, exactly. Okay. Thank you.
Yes. So I'd imagine more or less follow the seasonality over the top line. And so you can make eighteen. Of course, take this as an assumption, but it's a reasonable assumption.
Nineteen. Thank you. And just one very small follow-up in terms of current trading. So is it fair to assume that in the Q3 so far, nineteen. You've turned positive on a 2 year stock basis in retail because from my calculations in Q2 2 and also H1.
You were still low single digit down on a 2 year spec basis. Thank you.
Elena, we are 16. Still very young in the Q3, so I think we have the Q3 that is in front of us. But so far, yes, your assumption is correct. We need to confirm it in August and especially in September, which is usually where we see an acceleration of our retail business.
Understood. Thank you very much everybody. Have a good evening.
The next question is from Al Noche Bisput with HSBC. Please go ahead.
Yes. Hi, good evening. I have two questions actually. Just to come back eighteen. From Elena, a question about the retailer rollout for Stenailen.
I was wondering if you can comment about the nineteen. Normal run rate of store openings for first to 9 months, what we could expect going forward? The second question is about the CapEx budget for this year. And finally, the third question is about the online exposure in 1. If you can give us the exposure to online in H1, that would be great.
Thank you very much.
Sorry, Anurag, the second question was on budget referring to?
The investment, the CapEx Digits. Okay,
Jean. Yes. Yes. Good evening, Alain. First of all, on the number of stores for Stone Island, as I mentioned, we are now
fixing the new concept
and working in parallel to develop the eighteen. And working in parallel to develop the Retail Excellence project, where we think that we will be able to start with The rollout of the retail excellence project by H1, let's say, the end of H1 20. 2022. This year, we had 5 openings for Stone Island, mainly on the first half twenty. The year, while for Moncler, it's usually a little bit more going in Q3 for the openings, we want to be ready more for the full winter season.
Nineteen. It has been anticipated. I think the rate of openings we can expect and I will give you a very broad, let's say, range because We are still we are working on it, but I think between 5 to 10 openings year on year is something that seems to be reasonable once nineteen. The concept and the retail excellence will be ongoing.
Ten. Okay. On your second question, CapEx budget, I mean for this year, we expect The total amount of €130,000,000 probably something more totally, of course, we are talking about the group now. But The vast majority of this amount is associated still associated with Montclair. But overall, you can Sure, million, dollars 1,000,000 to $135,000,000 of total CapEx.
With the contribution On the 2 main chapters, we discussed about in the first half, sorry, the network and infrastructure.
It was regarding the online. Eighteen. Well, I don't think we usually give a very precise number, but let me tell you that it was far above 50%. And we believe that this is a figure that we can plan for the full year.
Clearly, in terms of growth.
Yes, in terms of growth.
Okay. Thank you.
Nineteen. The next question is from Thomas Chauvet with Citi. Please go ahead.
Nineteen. Good evening, everyone. I have two questions. The first one on fallwinter deliveries in key markets. How are you Planning about this, particularly I'm thinking about China.
We are going to have the early timing of Chinese New Year. You have See the Winter Olympics that I think Montclair should probably capitalize on. How is that going to impact Q3, Q4, particularly in China. And secondly, a question for Roberto, but also maybe for Gino eighteen. I'm not seeing company background in the sportswear industry.
Do you feel the pandemic now that you've digested maybe some of nineteen. The learning is the conclusion of changing consumer behavior that the pandemic is giving Moncler, the Moncler brand here For the opportunities to grow the business in product categories that may have benefited from the lockdown situation, whether loungewear type of products, whatever you call it, can't find a better word. Obviously sportswear and athleisure, which have benefited from nineteen. The urge of many of us to go out when it was allowed in practice sports and that Moncler is obviously In that spring kind of summer business, quite small. Any idea maybe from you Roberto or Gino?
Thank you. Nineteen.
Thank you, Thomas, for the question. I will maybe enlarge a little bit your question to better answer on maybe on the approach We are currently having on the Chinese market. And I will leave Gino more for the second part of the consideration. Nineteen. As you know, we have the timing for the deliveries of the full winter season are starting quite early for Montclair.
We usually start With the pre collection already end of May and we go then with the different theme and the delivery done to the market I usually there by October. Latest, the market, they have the full collection already. Then, of course, we sell the Full winter season, a little bit longer than the spring summer season. So until March, especially for the The resort store, they still sell, of course, for winter season until March, April. And then at eighteen.
At that moment, the spring summary is becoming more relevant. For China and for the Olympics, we have planned a series of pop ups That are going to be present from January to February 2022. So we will increase the visibility of the grown up collection nineteen. That period. But let's say the strategy that we have for China is much broader and larger than just nineteen.
On some of the event, even if they are super important and super relevant, especially for that market. You mentioned some of them Like the Chinese New Year, but also Double 11 or the what we call the Saint Valentine for China. And here we have developed a strategy in 5 folds. 1 is to capitalize on this specific moment with nineteen. Dedicated collection to push also all our clienteling and CRM activities.
Secondly, we have also been working a lot nineteen. We increased the presence of Moncler on the social media side with the different channels that are specific and particular to the market. Eighteen. So I'll give you some example. We have started now to sell with the WeChat Mini program on the Chinese market.
And we are using the different social media channels to express and with different targets. So we use Weibo To increase the awareness, we use RED to increase the KOL visibility and to drive to store And we use doing for the branding. So we have defined a clear reason to be for each one of these channels. On top, we are going to sell. We're going to start launching our own website with the new visual identity by October this year.
So this is very important for us. And in the plan, we have Tmall that is planned for H2 2022. So it is the second pillar. The 3rd pillar, we still believe in retail. We don't believe that retail is dead.
And we have seen, especially on the Chinese markets, nineteen. Last year after the lockdown of February March that started from April, there were a lot of people coming back to the store. And we know that 2. Here we have an upgrade to do in the stores that we have in China. This does not mean a lot of new stores, but Increasing the visibility and the size of the existing store with here and there some specific projects.
So this year we have 1 important project in Chengdu in Swire with the store that is going to be a flagship store, a new concept nineteen. Much younger with much more digital elements inside. And we are going to develop this concept also in Salutu and so in Beijing. We have then signed also a very good deal with the Group 66. So we have Four openings in the next 2 years with Group 60 seats, 1 with in Vuan, with Upland that is going to be also a global nineteen.
So another one in Shenyang Forum 66 and Dalian Olympiad 66 this year plus visibility in Shanghai with nineteen. That's the 66% starting from 2022. So this is another very important pillar. 4th pillar is the developer of the services. So the only channel services, especially the distance sales that are now A common practice in Moncler in terms of sales and also what we call private appointments that accounted globally for the first half of twenty.
2021 percent to 13% of the total sales. So more than not only in China, but globally, 44 private appointments nineteen. I've been driving 13% of the total turnover of Moncler. And finally, I think we cannot forget The wholesale part, but especially Hainan. In Hainan, we have now a project of development with 2 openings that are planned for next year, one In Iku, in the northern part of the island and the other one in Sanya, with Sanya Airport.
So these are going 2 important openings together also with 2 other airports in China, one which is the one of Chengdu and the last one in Pudong. Nineteen. So with this, I think we are going to maximize the potential that we have with the travelers inside China.
Okay. Thomas, thank you for the question again. Nice to meet you. Again, a few things I think through The pandemic, I will say, yes, few things changed. I think many others has accelerated, right?
And I think Mr. Ruffini mentioned this at the beginning about How we can keep working on becoming a more consumer centric brand. I think by doing so, I think there's a few things that hopefully you will see us Doing which is a further acceleration in Geo Digital and believe that we are a brand that will focus on relationship over transactions and this something that will unlock further growth for both the brand in terms of engagement and the business as well. And then I think yes, of course, there is a lot of great opportunities. I mentioned this about the potential of this brand.
I think For us, moving forward, being more specific about the different the complementary offense we can drive in terms of serving multiple consumers through multiple dimensions The brand will become another critical factor about how we'll drive the brand and the business to new heights. So again, of nineteen. Of course, we can go into more details into the future, but I think definitely the pandemic have been helping us to Accelerate some of the decisions that will help us to unlock the future phase and the future growth of Moncler Group and Moncler, the brand specifically.
So this would mean more new categories potentially that would where we balance perhaps a little bit Moncler's business Into springsummer lighter type of clothing whether outerwear or other categories? Nineteen.
I think again, I think definitely Moncler is a brand that will again, if we talk about Connecting with consumers and engaging with consumers and serving consumers, certainly, of course, we will be obsessing every detail to become an all year round brand for sure. And then nineteen. If you look into details of what the brand is today, you can see that we deliver from very high performance product with Grenouveau all the way down to Luxury with the Moncler collection and some incredible collaborations and being more useful through Genius. So again, you already have some of Some of the answers by looking to the details of what the brand is behaving today, what we want to do is reinforce those behaviors and go deeper into the things that make us a very strong brand today. Nineteen.
Thank you. Gino was here ready to introduce himself. So I think we have already a lot. So nineteen. Thank you so much Gino for all what you said.
Nineteen.
The next question is from Luca Zolka with Bernstein. Please go ahead. Nineteen. Mr. Zucker, your line is open.
Yes. Nineteen. Thank you very much indeed for taking my questions. I was wondering how you think about brand heat And the need to continue to innovate to remain top of mind and maintain top of mind recognition with consumers. Nineteen.
I see that Gino has been put on the spot already, but I wonder how he sees the transition From playing within the largest brand in its segment to playing more of a gorilla nineteen. Being smaller and having to invent the slingshot a number of times to attract Consumer attention against mega brands. Then second question is really a detailed nineteen. And in regards to Stone Island, we see that there's a significant difference in the Q1 and in the Q2. I assume nineteen.
This is due to the schedule of wholesale deliveries. But if you could give us a confirmation on that, That would be very useful. And then anything else you could say on the exit rate. I see that in comparison to 2019, you moved from 1% in the semester to 5% in the Q2, so a significant acceleration. I think that it's a fair assumption that this comparison, the 2 year stack would continue to increase in the Q3.
Thank you very much.
Nineteen. Okay. Thank you, Luca. So I think I have to pass on to Gino again for the first question. So I lead to Gino to answer the question on brand heat and then to Roberto Nuciano for the second and third one.
Luca, thank you again. Eighteen. Again, I think there is no secret that the brand have been delivering a strong work, especially in terms of brand heat and nineteen. In the past few years, I think what we're looking forward is to even increase that doubling down in terms of how we can become even more meaningful and more disruptive in the way We tell stories on how we go with this. I think you hear already from Luciano about how we have been Wrapping ourselves through the pandemic, getting out of this to invest more into the second half of the year, I think you will see some strong work Happening from coming from the brand in terms of building that Bratjeet.
I think we believe that we can be a very distinctive, meaningful and authentic eighteen. In everything we do and everything we say, and that will be what we keep pushing. I think the other eighteen. To your point in terms of brand heat, it's not only about the way we will connect with consumers and we acquire if you want consumers in, it's about How we start leveraging our digital platforms to retain those consumers and build bigger communities around the brand. So for us, The idea of becoming a more digital first organization as well and brand in terms of how we connect is not only the acquisition and the desire and the heat, it's about how we can become more effective nineteen.
Even efficient in the way of how we leverage those connections to drive the business forward.
Regarding the eighteen. On the island seasonality, Luca, the point is exactly that. I think we have started the delivery of the full winter eighteen, but we wanted to push the level of sales for a little bit higher full price. As you know, that is the philosophy that we like. So we wanted to have the spring summer present a little bit longer.
And we expect a very good Q3 for us on Alain In terms of wholesale. There have been also reorders that have been asked for the spring summer. So very happy about the current trend for Both the retail and the wholesale business on Stone Island. Can you give the exit rates?
Nineteen. The nineteen. Last question from Luca was, if we believe there will be an improvement in the 2 year stack as we have seen in Q2 compared to Q1. Is this going to continue in Q2?
Yes. So this is a little bit premature, Luca, to twenty. I mean, so far so good. I mean, July started well. So we have eighteen.
The most important month for our business, Q3 mostly impacted by more Sale and well, sale is quite predictable and should deliver good results. Retail less predictable. It will depend, of course, on the overall situation eighteen. Of the pandemic,
but in
any event we expect the second half of the year, I mean, let's say in
nineteen. I know we've got expectations of the market.
And if I may add, Luca, the point is that as we are less dependent On travelers for the end of the year, if there is there are no lockdowns and we are more relying on locals, I think it makes it also a little bit more predictable. And on this, we are confident, again, provided that there will be no Further lockdown for the end of the
year. Indeed. That is all what that is what we all hope. Nineteen. Absolutely.
Thank you very much indeed all for the answers. Thank you.
The next question is from Susie Tibaldi with UBS. Please go ahead.
Hi, good evening. Thanks for taking my questions. Nineteen. First one on Sun Island, I wanted
to check if you can comment on
the level of growth that you are seeing if we think pre COVID nineteen. In terms of top line, the business was growing somewhere in the mid-20s. Is this a reasonable level to expect for this year? Or are some of the initiatives that you have They are implementing maybe already having a positive impact, so the growth could be even stronger than that. Nineteen.
Secondly, on the second half margin, we I mean, in H1, you had about 5% GAAP This is 2019 level. Then of course, last year H2 was very, very strong. So just wondering if you can comment a little bit on what we can For the second half, obviously, dependent on top line. But if there is anything internally in terms of cost nineteen. Or anything that you can control that we should be aware of?
And then thirdly, just curious to hear from Roberto X nineteen. How his role is going to change now that Mr. Fitanotti has joined the company and whether he will ten. More time also with Stone Island. Thanks a lot.
Susie, sorry, your first question on Stone Island growth, but I didn't get Fully, if you refer to which period, can you just repeat it?
Yes. Just for the In general, just to understand what kind of top line growth the brand is seeing. And so in terms of full year, If we can expect the growth to sort of go back to pre COVID level, so somewhere in the mid-20s or potentially even more. Eighteen. And I'm thinking about the brand overall for the full year, not just the 9 months.
Just trying to track the level of top line growth.
Yes, the brand will be in Sonae Island, okay. That's right.
Yes, Sonae Island. Yes.
Nineteen. I will start, hi, Susie, and maybe a little solution or give some complement to the answer. I think Sunnalen being more dependent On the wholesale business for the time being, so also more related to locals, we can expect significant growth compared to nineteen, probably higher than the one of Montclair that is much more exposed to twenty. Tourism. So this make it a more predictable business.
And we as it is also dependent at 75% on whole sale. We have also had the orders of the springsummer campaign, so we can predict quite well the result for the second half of the year. So we are very confident on the Stone Island business. The business also in retail, which nineteen. It's mainly a business that is in Europe, in U.
K. And in Korea, is also targeting more of a local consumer And less exposed to tourists than Moncler. So on this, we can also we are also confident nineteen. On the results of the second half. If I understood well also, you were wondering what my role is now in the company nineteen.
What I'm going what the role I'm going to play, I think these are discussions we had last year with Remo with the acquisition of Stone Island, Well, we were seeing on one hand the need to have somebody fully focused on the Moncler brand in terms of communication eighteen. And at the same time, having more resources available to develop the Stone Island brand and be more focused on the results On the region, so as Mike is saying, we are focusing on the business strategy of both Moncler and Stone Island and focusing also to bring Stone Island in terms of retail excellence and wholesale excellence and online excellence to the level of Moncler. Moncler, we it took us quite some few years to bring it to the level we are now. The object The Bouygues Towne Island is to do it in half of the time we use for Moncler. So leveraging on all the know how, but making it very specific to the brand It's not a copy paste.
It's taking the recipe, but then cooking with the Stone Island ingredients. And I think I've already that is making yes with the head. So I think this is going to be the focus for the next 2 to 3 years. Thank you.
Yes, Suzy. About the strong growth, if I can understand something, I mean, it's eighteen. Something that we normally don't disclose, but simply because we don't know. But in this case, based on what I said before, considering that nineteen. The staff of the Sun Island business, we said before, may represent about 45%.
And considering that last year, the 12 months sales were in the region of EUR 220,000,000 EUR 230,000,000. We can assume that this year nineteen. We should do a 30% growth rate. Again, it's not a forecast, but It is simply based on the, let's say, thinking process we developed together before. About margins, yes, the second half margins, of course, I guess you Referring to the group.
I mean, the St. Island contribution to operating margins nineteen. We will not change materially the Moncler operating margins. So we don't expect that we'll be dilutive or accretive, That should be more or less in line with Moncler for the year end because of course the first half and second half may be different for the seasonality Point I brought up before. Having said that at the beginning of the year, we said that 2021, we'll not or we don't expect that we'll be back to 19 to what was normal before COVID.
But operating margins nineteen. This will be in the middle between 2020 2019. So I mean this is our nineteen. Our assumptions are still valid for the time being based on our current visibility. We may do better, yes, but it could be It's prudent and definitely very much work to anticipate further improvement.
So for the time being, nineteen. We can assume an operating margin in the middle between 2020, that was 26% and 20 nineteen. 30%. So in the region of 28%. Again, any better news will be Communicated later.
Thank you.
Okay. Thanks a lot. Nineteen. The next question is from Antoine Rioux with Societe Generale. Please go ahead.
Good evening, everyone. I have three quick eighteen. So first one, just is it possible to get a sense of the evolution of the like for like on the sequential basis And on the 2 year stack basis, Q2 versus Q1, should we consider that I mean, it's probably the eighteen. Same trend at the 2 year trend for the whole of retail, I. E, Roughly the same 2 year like for like growth Q1 versus Q2 on a 2 year basis.
That's my first question. The second question is for Mr. Fizzanoti. Just wanted to understand if we should read anything in your background at Nike in terms nineteen. Of your sneakers knowledge, does it mean in your view that Moncler could become a bit more ambitious In this space going forward and also from the group perspective, I understand that Stone Island also has collaboration with New Balance.
So for the group, do you think this is a category that could be interesting? And my last question is just on e commerce. I remember that in the past you have said that e commerce from a margin perspective Was broadly neutral versus physical? Is it a comment that still stand? Or do you think that with e commerce gaining scale.
This could become margin accretive in the medium term. Thank you. Nineteen.
Thank you, Antoine. Then I'll leave to Roberto for the first question.
Yes, I'll start with that. Nineteen. Hi, Antoine. Good evening. Regarding the evolution of the comp, what we have seen over the last one year, is that Definitively for us now an improvement, let's say, quarter after quarter, but that was mainly linked to not nineteen.
An effect of seasonality, but more linked if this was a quarter where the store were open or not and if there if it was a quarter dependent Relying more on tourism or not. So clearly, we have what we have in front of us for the end of the year are 2 quarters, The Q3 where there is still an importance and the relevance of tourism and the Q4 that is much more Focus on the local. So what we can expect is an improvement of the comp as the store are now Almost all open. We only have 3 stores that are still closed, 2 airports plus 1 store in Australia. Of course, there are still the possibility for order to close, but so far so good.
So we expect an improvement in terms of comp for the 3rd and for the Q4, especially with the fact that we are there usually at more than 70% Relying on the local business. Regarding the margin on income, as I let Luciano comment, but just on the PIs since we launched the new website. What we have seen was a strong improvement in all the KPIs related To the new website, in terms of conversion rates, in terms of less return, we have 2.5 points less return and this has an impact Also on the profitability of the channel. As I mentioned, better convention, less also bounce rate. Bounce rate Is this figure that we are following, these are the people, the consumers that are coming on the website and that are leaving the website After having visited the first page and here we have had a dramatic decrease in terms of people leaving the website.
So they I found the website interesting. They stay 32nd on average 32nd more than before. And what we have seen is an increase in the basket, What they have been buying and less return. So I don't know what Luciano is going to really say in terms of profitability of the channel, but definitely with the new website, nineteen. I think we can expect even it to improve it in the future.
About
eighteen. The strategic reason why we decided to ensure that the business was not to further improve our gross margin, but nineteen. To take advantage of the full and the big high potential of that The channel for Moncler and to fully take advantage of the opportunity to increase that business. 16. Profitability maybe, might be even higher than before, as Roberto said.
But honestly, it's not our target for eighteen. This year end is not our target for next year. The target is to have a full in place, totally up and running nineteen. A powerful machine to take advantage of this potential. Margins may be better even better in the future, but we don't anticipate I don't think anything now because again, they were already very good before.
I'll leave it to Gino to answer 1st half twenty twenty.
Antoine, thank you for the question. I think the short answer to your question will be yes, Farley, if I will go even a bit further, I would say Moncler has already a kind of a healthy sneaker business in place. And I think both brands have done The work in the past few years to authenticate themselves into this segment, right? And I think that's what you're alluding to the new balance Deal that Sonae indeed even with Nike before as well and things like that. So I think the work was done.
I think definitely the opportunity ahead is nineteen. For us to unleash this opportunity and not only to unleash this opportunity from the business perspective, I think I truly believe That footwear sneakers is a critical component in terms of engaging with consumers, with youth as well. And I believe that this will help us to unlock Some critical markets around the globe. So the answer is the short answer is yes. The longer answer is we will start on the journey to unleash our footwear and sneaker opportunity.
Nineteen. Thank you very much.
The next question is from Melania Grivov with Exane BNP Paribas. Please go ahead.
Good evening, everyone. It's Melanie Griffith, Exane BNP Paribas. Thanks for taking my two questions. My first question is could you please comment on your growth by nationality class there compared to 2019 for your key nationalities? Eighteen.
And my second question is if you could please elaborate on your performance in the USA, your very strong performance. Have you seen an increasing number of new and young customers or has this been driven in particular by category? Thank you.
Nineteen. Yes, good evening. Thank you. Thank you for
the question. Regarding the By nationalities, in terms of performance, what we have seen is definitely a very strong performance of our Chinese market growing almost Triple digit, the same for the Americans. If we take the Americans, we thought Hawaii. With Hawaii, we have nineteen. Been penalized, but we thought that why the American nationality has been growing very, very strongly compared to 2019.
And we've seen also Korean growing also Korean have been growing triple digits compared to into Q2 of 2019. And then we have the Japanese performing not so good, but this is mainly linked to the fact that they have not been traveling and on top That part of the store were closed. So in brief, this has been the performance that nineteen. Regarding the North American market, the surprising result was the fact that we usually we have always been looking at eighteen. What we call the Sun Belt, so these are all the stores that are in the southern part of the Americas as being a little bit more difficult for us.
It's 2 that we are now currently selling the springsummer season that is definitely helping, but we have had very, very good performance on that 5. We opened a store in Houston that is performing very well. And also the wholesale business has had a lot of reorders on the spring summer and was 16. Clearly demand more demanding and clearly clear sorry, demanding more products to be sold. So we have excellent level of sales through eighteen.
Both in terms of online, but also with the wholesale accounts that have been performing very well. In terms of typology of client, Slightly younger than before on the North American market, but not significantly different than before. Clearly, what is going to help now nineteen. The sales of with fragment, we know that usually we target and we reach a younger consumer with this type Of Genius launch, but this has not been reflected in the result of the Q2 as we have decided to launch it in July. Also the launch of Converse with Fragment has been very, very good, especially in North America, in Europe and in Japan.
Nineteen.
Thank you.
The next question is from Andrea Randonevid, Intermonte. Please go ahead.
Nineteen. Thank you. Sorry. Thank you, but my question was already answered. Nineteen.
Thank you. Mama.
The next question is from Flavio Tereda with Jefferies. Please go ahead.
Hi, thank you. Yes, so three quick questions from me, please. Number 1, on Stone Island, can I just check, are you in the process of doing a So doing channel clear out at the moment because I'm finding very significant markdowns on the product? So I was just wondering whether that's part of the process pre relaunch. Question number 2, are you comfortable and this has more to do with Moncler, obviously.
Are you comfortable with your current pricing architecture And the price gap and differential between the different geographies and you think that's sustainable in for the time being. And number 3, now if I'm not wrong, Paolo, at the beginning, I think you said Andrea Thierry was there as well. So I thought I'd wake him up and ask him some questions nineteen. And specifically, if it's possible to have a little bit more granularity on how many locations have been secured, Specifically for Montclair, but I guess from Stone Island as well. I know Stone Island, you're very active in Asia Pacific.
I believe you have an outlet open then as well. And you did touch on certain openings that you have forthcoming in China for Montclair. But I wonder if we could have a sort of a quick overview of Where we stand today, say, over the next 18 months, 24 months or something. And if you're seeing more challenges in the sense that nineteen. You are clearly looking for more expensive, more prime locations compared to before in larger stores.
You are, of 1st much more of an anchor brand compared to a few years ago. But are you still finding it relatively Comfortable to secure the locations that you're looking for. Thank you.
Nineteen. So, I can confirm that Andrea was nineteen. I'm sorry, who is pleased already before your answer. Just on the 2 first points on the channel clearance for Stone Island. As you know, this is and this has been in the past The normal practice for Stone Island to go on sale at the end of the season.
I must say that this is not exactly what we nineteen. Like in Montclair, so we are working with the Stone Island team to progressively maybe Evolve the business model, but I think this is something that needs to be prepared, especially with the weight Of the wholesale business. But I must say that looking at the figures that are on my desk on a daily basis The level of sales for that Stone Island is having, I don't think that this is going to be a step that is impossible to do. It's requiring Some time and preparation, it needs to we need to convince and not to impose it. But I think that is definitely something that is going to be on the plan and I see nineteen.
Carlo, that is making yes, we behead. So currently, we are having some clearance on the wholesale channel and in the retail, but We have decided to hand it prior to what we had usually with Stone Island. So by the end of the month, it should be over Already while in the past it was more going till mid of August. So I think it's the first positive sign that we are going and aiming at the same direction. Eighteen.
Regarding the pricing architecture, I think we commented or maybe not the fact that we didn't do some price adjustments for the current season, but we are planning to have some price adjustment for the next season. So nineteen. We are going to see a reduction of the price gap with the spring summer 2022 with mainly The Asian market. But I must say that the big part of the job was done in these past twenty. Yes.
And if you remember, Flavio, we had with Asia, with Japan 5 years ago, a price gap that was 2. 80% 90% is now below 50%. So we're starting with 4%. And we're working with Luciano and the team to have it with the free with something starting by 30% in the course of the next couple of years. Nineteen.
So we're working on it. The spring summer will be a further step in the price reduction with Asia, but also now with less People traveling, I think, is a little bit less of an issue, but it remains high on the agenda.
Nineteen. Hi, this is Andrea Teege. And thank you, Flavio, for waking me up. I was I'm kidding. I was quite interested in the call.
For secure location, if you refer to this year, of nineteen. They're all secure because as you know, we are planning to open quite a few in the Q1 and Q4. Nineteen. So for that, I can assure you that these are well ongoing and we will be opening this location by year end. Nineteen.
Considering regarding your question regarding if you are comfortable in nineteen. Finding new location. I think it's very important that we know because we are looking to gain more visibility and to enhance the store experience. So most of the nineteen. Project that we look in the future would be also regarding relocation or expansion and eighteen.
This is very important. And basically, we are quite well positioned. There is a lot of demand when I discuss with the landlord Moncler is now, like you said, it's an anchor. Eighteen. With the landlord, Moncler is now like you said, it's an anchor.
So it's quite I'm not saying it's easy, but it's Much more comfortable than before. We talked many times at the beginning how difficult it was to position Moncler Back in a few years ago. But today, it's we have a lot of opportunities going. So it's basically if you even if you look at 2022, nineteen. There are quite a few nice projects on the pipeline, but would be not already secured, but nineteen.
I believe they will be secure in a short time. So thank you. So can you just quickly remind us how many locations have been secured at start. 15, 15, 15, sorry, I forgot to mention. 15.
Nineteen. Thank you. Thank you.
Thank you. And operator, if there is, we will Take just the last question. But if there are no, I think it's already time For everybody to stop it, just let us know.
There are no more questions registered at this time.
Good. Okay. Eighteen. Okay. So thank you to everyone.
As usual, I remind you that Q3 will be on October 28 and our silent period twelve. And in the meantime, we wish to all of you a very nice summer break. Thank you. Thank you everybody for all the nice questions.