Moncler, through the normal business management and the development of its strategy, is exposed to different types of risks that could adversely affect the Group’s operating results and financial position. The most important business risks are monitored by the Control, Risks and Sustainability Committee and periodically reviewed by the Board of Directors, which is responsible for the development of the strategy.



The spread of the coronavirus is a complex and unprecedented global emergency in the modern world, with health, social, political, economic and geopolitical implications. Moncler’s task force, set up to face the emergency, supported the Group’s senior management in defining a strategy aimed primarily at safeguarding the health of its employees, protecting the business and focusing on strategic objectives, also through the update of its three-year strategic plan. Among these, the strengthening of the digitisation process and the implementation of a full omnicanality are fundamental. However, it cannot be excluded that the persistence of the emergency situation, together with the uncertainty of its evolution, may negatively affect the results of the future years.



Moncler operates in the luxury goods sector, which is characterised by a high correlation between the demand of goods and the trend in wealth, economic growth and political stability in the markets where the demand is generated. In addition, the Group’s ability to develop its business depends to a significant extent on the economic situation of the various countries in which it operates.

Although the Group operates in a significant number of countries around the world, thereby reducing the risk of high concentration of the business in specific geographical areas, the possible deterioration of economic, social and political conditions in one or more markets in which it operates may have a negative impact on sales and financial results of the Group. The introduction by national or supranational bodies of restrictions on the movement of people between different countries – as a consequence, for example, of international crises or pandemics – can have an impact on revenues, especially in relation to certain geographical areas in which Moncler operates.

In particular, important international consulting firms estimate that over a third of the world’s luxury goods consumers are Chinese, representing the most important consumer cluster for the sector today; therefore, it cannot be excluded that a significant slowdown in the Chinese economy or travel restriction from China could have negative effects on the performance of Moncler.



The luxury goods sector in which Moncler operates is influenced by changes in clients’ tastes and preferences, but also by different habits in the regions in which it operates. In addition, the Group’s success is significantly influenced by the image, perception and recognition of the Moncler brand. The Group constantly focuses on maintaining and enhancing the strength of the Moncler brand, paying particular attention to the quality of the products, the design, the innovation, the communication and the development of its own distribution model, by looking for selectivity, quality and sustainability, also in the choice of the partners. Moncler integrates sustainability assessments, while all values (religious, cultural and social), in its communication and marketing decisions, since the Company believes that the continue creation of value for its stakeholders is an essential priority for its reputation.

If the Group will not be able in the future to maintain a high image and brand recognition, through its products and activities, sales and financial results may be affected negatively.



Moncler’s results and success depend significantly on the ability of its executive directors and other members of the management team, which have had a decisive role in the development of the Group and which have a significant experience in the luxury goods sector. 

Even though Moncler believes that it has an operational and managerial structure capable of ensuring the continuity of the business, if the existing relationship with some of these individuals were to be interrupted without proper and timely replacement, the competitive ability of the Group and its growth prospects may be affected, with a resulting negative impact on the economic and financial position of the Group.

This risk is mitigated through the definition of a succession plan and the adoption of retention plans for key professional figures.



Moncler’s products require raw materials of high quality, including, but not limited to, nylon, down and cotton. The price and availability of raw materials depends on a wide variety of factors largely beyond the control of the Group and difficult to predict. 

Although in recent years Moncler has not encountered any particular difficulties in the purchasing of high quality raw materials to the extent appropriate, it cannot be excluded that there could be some tension on the supply side that could lead to a shortage of supply resulting in an increase in costs that could have a negative impact on the financial results of the Group.

In order to minimise the risks related to a potential unavailability of raw materials in the time required by production, Moncler adopts a multi-sourcing strategy of diversifying suppliers and purchase plans with a medium-term time horizon. Furthermore, these raw material suppliers are contractually required to abide by clear commitments to quality and compliance with current legislation on worker protection and on local labour law regulations, animal and environmental protection and usage of hazardous chemicals.

With reference to workers’ rights, Moncler includes, among the suppliers’ qualification criteria, the passing of social audits carried out by qualified professionals. With regards to animal welfare, Moncler created a multi-stakeholder forum, which approved and constantly monitors and integrates the DIST (Down Integrity System and Traceability) Protocol, focused on the down. All suppliers have to scrupulously comply with it, in order to guarantee the traceability of raw materials, animal welfare and the highest quality throughout the supply chain.  With regards to hazardous chemicals, Moncler requires its suppliers to operate in full compliance with the most restrictive international legislation applicable to hazardous or potentially dangerous chemicals, including the European REACH12 regulation, the Chinese GB13 standards, the Japanese JIS14 standards.



Moncler directly manages the development of the collections and the purchase of raw materials, while for the production of its garments it uses independent third-party manufacturers (façon manufacturers), who operate under the close supervision of the Group, and internal production. 

Although the Group does not depend to a significant extent on any given manufacturer, there is the possibility that any interruption or termination for any reason of the relationship with these manufacturers may materially affect the Group’s business with a negative impact on sales and earnings.

Moncler maintains constant and continual control over its third-party manufacturers in order to ensure there is full compliance, in addition to the highest quality requirements, with labour and environmental laws and with the principles of Moncler’s Code of Ethics and Code of Conduct for Suppliers. Moncler performs audits at these third-party manufacturers and at their sub-suppliers verifying also the compliance with dedicated health measures within the plants given the Covid-19 pandemic. The risk cannot be excluded, however, that any one of these might not fully comply with the agreements entered into with Moncler in terms of quality, timely delivery and compliance with applicable regulations.



Moncler generates an increasing portion of its revenues through the retail channel, consisting of directly operated mono-brand stores (DOS). The Group has over the years demonstrated the ability to open new stores in the most prestigious locations in the most important cities in the world and within high profile department stores, despite competition among key players in the luxury goods sector to secure a strong position in that sector. This is the reason why the fact that the Group might face difficulties in opening new stores, which could have a negative impact on the growth of the business, should not be excluded.

In addition, by its nature, the retail business is characterised by a great incidence of fixed costs, mainly related to rental agreements. Although Moncler’s management showed the ability in the years to develop a profitable retail business, it cannot be excluded that a potential turnover slowdown could reduce the Group’s capability to generate profits.

In the Covid-19 span, Moncler has negotiated temporary store rents reductions with the main landlords with which it has business relationships.



The luxury goods market is known to be characterised by brand’s and product’s counterfeiting. 

Moncler has made considerable investments in the adoption of innovative technologies, which allow products to be tracked along the value chain, to prevent and mitigate the effects of counterfeiting of its brand and products and to protect its intellectual property rights in the territories in which it operates. However, it cannot be excluded that the presence on the market of significant quantities of counterfeit products may adversely affect the image of the Brand, with a negative impact on sales and operating results.



Moncler operates in a complex international environment and is subject, in the various jurisdictions in which it operates, to rules and regulations which are constantly monitored, especially for all matters relating to the health and safety of workers, environmental protection, rules around manufacturing of products and their composition, consumer protection, the protection of intellectual and industrial property rights, competition rules, fiscal and customs rules, and, in general, all relevant regulatory provisions.

The Group operates following the legal provisions in force and has established processes that guarantee knowledge of the specific local regulations where it operates and of the regulatory amendments that gradually take place. Nevertheless, since the legislation on some matters, especially on tax issues, is characterised by a high degree of complexity and subjectivity, it cannot be excluded that a different interpretation to that of the Group could have a significant impact on the results. In this regard, Moncler is engaged in a program for the definition of preventive agreements (Advance Pricing Agreements) with the Tax Authorities of the main countries in which the Group operates.

The enactment of new legislation or amendments to existing laws which may require, by way of example the adoption of more stringent production standards, could lead to costs of compliance linked to the production processes or to the features of the products, or could even limit the Group’s operations with a negative impact on the financial results.



Moncler operates in international markets using currencies other than the Euro, of which mainly Yen, U.S. Dollar, Renminbi, Hong Kong Dollar, Korean Yuan and British pound.  Therefore, it is exposed to the risk associated with fluctuations in exchange rates, equal to the transaction amount (mainly income) which are not covered by a matching transaction of the same currency. The Group has implemented a strategy to gradually hedge the risks related to exchange rate fluctuations, limiting its actions to the so called “transactional risk”, and has adopted a stringent policy on currency risk that sets the minimum limit of coverage per currency at 75%.

However, also due to the so called “translational risk”, arising from the translation in Euro of financial statements of foreign companies denominated in local currency, it cannot be excluded that significant changes in exchange rates could have a positive or negative impact on the Group’s results and financial position.



The Group has no significant financial agreements active by third parties as it is fully capable of self-financing. However, the Group may make use of loans from third parties, specifically bank loans; in case it should choose to resort to such loans, it would be subject to the risk of interest rate risk revision. The Group, in order to partially hedge the interest rate risk, has entered into some hedging transactions.

However, any significant fluctuations in interest rates could lead to an increase in borrowing costs, with a negative impact on the Group’s financial results. 



Moncler operates in accordance with the credit control policies aimed at reducing the risks resulting from insolvency of its wholesale customers. These policies are based on preliminary in-depth analysis of the reliability of the customers and based on eventual insurance coverage and/or guaranteed form of payment. In addition, the Group has no significant concentrations of credit. 

However, it cannot be excluded that the difficulty of some clients may result in losses on receivables, with a negative impact on the Group’s financial results. Moncler monitors and manages with particular attention its exposure with wholesale customers with significant orders, also by requesting and obtaining bank guarantees and money deposits in advance of shipments.



The Group has implemented financial planning process aimed at reducing the liquidity risk, also taking into consideration the seasonality of the business. Based upon the financial requirements, credit lines required to meet those needs are planned with the financial institutions and are classified between short-term and long-term. 

Moreover, given the risk of losing the capital, the Group follows strict rules to balance its deposits and cash liquidity in an appropriate number of highly rated bank institutions, avoiding the concentration and using only risk-free financial products.



The sector’s rapid technological evolution and the growing organisational and technological complexity of the Group’s activities expose the Company to the potential risk of cyber-attacks.

In relation to this, Moncler has adopted a governance structure and cyber risk management model based on international standards, which includes procedures, training, assessment and periodic risk reviews. These have led to the adoption of the best technology available, to the co-working with the best partners to strengthen the protection of the Company perimeter, to the control of third parties that interact with Moncler systems, also with new contractual provisions, in order to guarantee solid business continuity tools and processes. In addition, a penetration test plan is in place, supported by specialised technicians, which identifies any necessary improvements of corporate IT security.



In December 2020 Moncler S.p.A. and Sportswear Company S.p.A. (owner of the Stone Island brand) signed an agreement under which Stone Island will join Moncler. 

While awaiting the deal to be closed within the first half of 2021, the two Companies have begun to coordinate operations. In that integration process, Moncler and Stone Island bring together their entrepreneurial and managerial cultures while fully respecting each Brand’s identity and autonomy. The process is taking place under the guidance of a Strategic Committee and a Integration Committee, made up of the two Companies’ senior management. 

Although both parties are sensitive to the other’s culture and their focus is on mutual priorities, because of the complexity and delicacy of the integration process, it cannot be excluded that delays will occur, or predetermined strategies will be adjusted along the way. 



With operations in countries around the world, Moncler firmly believes that respect for people, human rights and the environment, and compliance with applicable laws, are prerequisites for responsible business management. To this end, it is committed to implementing the necessary policies, carrying out due diligence activities and appropriate checks, and providing training and information to minimize any risks related to these issues. These risks are described in Moncler’s Enterprise Risk Management model, along with their respective probability of occurrence and level of impact.

As regards our people, the main risks associated with human resources management include, in particular, the reliance on key figures and the difficulty to retain and develop talent. In this regard, the Company follows a performance appraisal system that covers the entire workforce and considers both soft and hard (technical) skills. The system is designed to leverage and develop individual skills in the medium and long term, define succession plans, and nurture the best talent. The Group has also developed an incentive plan to facilitate the retention of managers and key personnel. With the aim of creating a more attractive work environment, Moncler has implemented a welfare plan in Italy, the United Kingdom, and South Korea, as well as specific employee wellbeing initiatives at the production site in Romania and in other Regions. 

The risk of human rights violations against the employees of Group companies is considered solely at a theoretical risk level, owing to the level of protection ensured by various laws and/or collective labour agreements, the working standards set out in Moncler’s Code of Ethics, and the oversight activities in place at the corporate offices. Furthermore, Moncler has adopted a Group-wide Personnel Recruitment Policy to ensure a robust personnel selection and recruitment process while guaranteeing equal opportunities. In 2020, a Diversity and Inclusion Committee was formed in order to reinforce the values of inclusivity and diversity, inside and outside Moncler. The Company provides a whistleblowing system so anyone can report alleged misconduct. 

Moncler’s business model entails the manufacture of its products through its own production site in Romania and through façon manufacturers and finished product suppliers in Italy and abroad. In addition, the Company purchases raw materials and services from a large number of suppliers worldwide. Moncler’s variety of partners and geographical scope have led it to invest heavily in preventing and monitoring risks associated with possible human rights violations along the supply chain, with a particular focus on sub-contractors, specialized workshops, and the main logistics operators. Moncler conducts regular audits, also through certified specialized firms, on the supply chain’s compliance with applicable laws and the principles set out in the Code of Ethics and the Supplier Code of Conduct. The two Codes set binding standards of conduct for suppliers, failing which collaboration may be terminated. Moreover, the Group is committed to raising awareness of responsible sourcing principles among its partners through specific training activities.

Moncler pays particular attention to the environmental aspects of its business, although its most significant environmental impacts are indirect. One of the strategic drivers of the Sustainability Plan Moncler Born to Protect is the fight against climate change, demonstrating the priority Moncler places on preventing and mitigating such risks. In this regard, the Group has joined the Science Based Targets initiative defining greenhouse gas emissions reduction targets that are consistent with the United Nations’ commitment to limit the maximum global temperature rise compared to pre-industrial levels. In general, Moncler sets out rules, processes and control procedures to manage any environmental risks associated with its suppliers through the Code of Ethics and Supplier Code of Conduct. Compliance with the binding provisions contained in these documents is monitored through environmental audits carried out by specialized third parties. As regards its direct environmental impacts, Moncler implements numerous initiatives to minimize them by following an Environmental Policy and an Environmental Management System, defining public commitments and targets to reduce energy consumption, and engaging its employees in reducing paper, toner and energy consumption and promoting waste sorting. Moncler’s corporate offices, logistics hub in Castel San Giovanni (Piacenza, Italy), and production site in Romania are certified to ISO 14001. Moncler is going to integrate the TCFD framework in its risk management in 2022.

Moncler has also adopted a Group-wide Compliance procedure to: (i) disseminate the meaning of compliance at Moncler; (ii) define the areas of application; (iii) establish the general compliance principles adopted by Moncler; (iv) define employee roles and responsibilities; and (v) provide guidelines based on the pillars of the Group Compliance Programme, which is regularly updated.

From the outset, the Group’s Compliance unit has been engaged in activities aimed at strengthening the monitoring and management of compliance risk, starting from the areas considered to be most sensitive, such as those related to antitrust, health and safety, privacy, and anti-corruption issues.

Moncler also considers the promotion and protection of employee health, safety, and wellbeing to be a key value and a top priority. For this reason, an effective management system compliant with the international OHSAS 18001 standard was first implemented globally at all offices and stores (excluding shop-in-shops) and at logistics and production sites. It was then updated to the more recent and complete ISO 45001 standard. The system provides not only for the application of uniform management rules, detailed in the Health and Safety Management Policy, reinforced in 2020 by the adoption of an anti-COVID protocol, but also for periodic checks at all of the Group’s workplaces. Bolstered by training and awareness activities targeting Moncler personnel and suppliers, the management system plays a crucial role in the Group’s strategy to mitigate the risk of accidents on the job.

The Group has always been highly attentive to privacy issues. In addition to improving the privacy section of its Code of Ethics, it has completed preliminary work to adapt its compliance model to the new European regulation which came into force in May 2018, including by adopting a specific policy and carrying out awareness-raising activities among all employees. In 2020 it conducted a follow-up check on the measures taken to improve the internal control system following a compliance audit on the issue of client data privacy.

As regards corruption prevention measures, Moncler has developed and adopted an Anti-Corruption Model whose provisions include the regulatory review of corruption offences in countries where the Company operates, identifying the areas and business processes most at risk of corruption. An Anti-Corruption Policy was therefore implemented by each company of the Moncler Group, governing the responsibilities for monitoring regulatory changes, risk controls, training, audit activities, management, and the reporting of any cases of non-compliance. 

Moncler’s main social risks are those that affect consumers, namely, product safety and counterfeiting. To protect the health and safety of its clients, Moncler requires all its suppliers to operate in full compliance with the most stringent international regulations on hazardous and potentially hazardous chemical substances, and regularly conducts strict tests on the chemical composition and physical and mechanical properties of its products. Suppliers are also required by contract to comply with the guidelines of the Product Restricted Substances List (PRSL), updated in 2020, which outlines the most stringent standards for the use of certain substances. The proper implementation of these guidelines is verified through tests on the chemical composition of raw materials at independent specialized laboratories, at the request of the supplier and/or Moncler itself. Furthermore, the Group ensures comprehensive monitoring of this risk through an ad hoc corporate function, the Operations Compliance Department. Protecting clients and the Brand also means a long-term commitment to fight counterfeiting. In this area Moncler has implemented a number of management and prevention tools including: creating an Intellectual Property and Brand Protection department; developing detailed procedures; working with law enforcement, customs, and other luxury brands; providing supplier training and auditing; and using anti-counterfeit labels on all its products. 

Finally, Moncler is strongly committed to animal welfare, and requires strict compliance in this regard with its Supplier Code of Conduct. For this reason, Moncler demands and verifies that all down suppliers comply with the strict requirements of its proprietary DIST (Down Integrity System & Traceability) Protocol. With the support of specialized independent bodies, the Group conducts regular audits to ensure that animals are treated humanely. 



In the next three-five years, as World Economic Forum forecasts, an external, non-operational, commercially impactful, significant over the years and emerging geopolitical risk can arise as a potential threat: Interstate relation fractures.
Economic, political or technological rivalries between geopolitical powers, for example between China and America can in fact potentially drive a break of governments relations or increasing tensions.
This risk can be a particularly relevant threat for the luxury sector. The possibility that political frictions can have an impact on import, export of raw materials and multilateral duties, commercialization of products and/or an impact on foreign products consumers’ goodwill, can represent a risk for Moncler and as well as for the sector.


Interstate relations fracture can have two main possible impacts: commercial barriers and loose of goodwill because of local nationalism.

If State relations deteriorate, it can be the case that tax or duties will be imposed in order not to promote goods commercialization. At the same time if relations between governments get complex, local citizens could become averse to brands coming from other countries.


Mitigating actions

Moncler strategy has always been based on a continuous strengthening of brand awareness and reputation both internationally and locally.

At Moncler we believe that brand is everything. Every project is designed in order to make the brand stronger and to establish a strong relationship with clients. During covid the company has continued to support the brand and has strengthen authentic relations with local clients and local communities and will pursue the same objective in the following years. This will help Moncler reinforcing the emotional bond with local clients thus mitigating the impact of the risk of strong nationalistic sentiments.

At the same time Moncler continues both to source its raw materials all over the world thus limiting the dependency on single countries and to diversify its commercial strategy.



According to World Economic Forum Risk Perception 2020, among the highest impact risks of the next decade (likely in the next 3-5 years), there is the threat of debt crisis.

It is an external, not operational, commercially impactful, significant risk that refers to the thread that increasing levels of public and, even more, private debt may bring a global debt crisis



A potential crisis debt having an impact on global economies growth and stock exchanges performances, could affect the luxury sector/consumption and the valuation of the stocks of listed companies.    Accordingly, this risk could negatively impact Moncler sales performances, due to lower consumer confidence and decreasing spending power, as well as its share price value.


Mitigating actions

As mitigations actions, Moncler has identified and is pursuing two main activities: building a strong bond with consumers and diversify the product offer with selected entry prices garments at local level paying attention not to compromise the equity of the brand.

Moncler strategy has always been based on a continuous strengthening of brand awareness and reputation.

At Moncler we believe that brand is everything. Every project is designed in order to make the brand stronger and to establish a deep relationship with clients. During covid the company has continued to support the brand and has invested great energies to strengthen authentic relations with local clients and local communities and will pursue the same objective in the following years. This will help Moncler reinforcing the emotional bond with clients thus mitigating the risk of weak sales remaining a relevant brand for consumers. At the same time, we are assessing to introduce some entry level products without compromising brand positioning.

As far as the possible threat of less liquidity and less investments on the stock exchange, the company continues reinforcing its long-term relation with institutional investors.


12 Registration, Evaluation, Authorisation and restriction of Chemicals.
13 National Standard of the People’s Republic of China.
14 Japanese Industrial Standards.