Mediobanca: “In 2022 the turnover of 80 multinationals will increase to 566 billion (+11.7%)”
In 2022, the 80 largest fashion multinationals had a total turnover of 566 billion euros (+11.7% on 2021, exceeding pre-pandemic levels by 21.6%)., of which 58% was generated by European players and 33% by North Americans. These are some of the data contained in the new report on fashion created by the Mediobanca Research Area. Italian companies, the report highlights, reflect the variety and entrepreneurial creativity of our country and are therefore more numerous, but smaller in size. Among the 37 European groups, Italy with its 12 big ones is the Country with more protagonists, but France takes the lead in terms of turnover (43% of the European total), ahead of Germany (11%), Spain and the United Kingdom (both 10%), with Italy in 7th %.
Luxury groups are growing more than mass-market groups (+19.3% vs. +8.3% in 2021), also compared to pre-Covid levels (+32.7% vs. +13.8%). LVMH is confirmed in first place in terms of revenues among the global giants (79.2 billion). They follow, at a distance, Nike (48.0 billion), the Spanish Inditex (32.6 billion) which controls Zara, EssilorLuxottica (24.5 billion), the German Adidas (22.5 billion), the other French luxury player Kering (20.4 billion, of which 10.5 billion Gucci, 3.3 billion Yves Saint Laurent, 1.7 billion Bottega Veneta), the Swedish H&M (20.1 billion), the Swiss group Richemont (20.0 billion), the Japanese Fast Retailing group which controls Uniqlo (16.4 billion) and Chanel 2 (16.1 billion). Prada ranks first among Italians (4.2 billion), in 33rd place in the ranking, followed by Oniverse (44th position), Moncler (50th) and Giorgio Armani (54th).
The overall turnover appears concentrated: the top ten multinationals represent over half of the aggregate revenues, with LVMH alone accounting for 14%. Profitability also exceeds pre-crisis levels, with the aggregate EBIT margin at 15.1% (from 13.1% in 2019), the result of the aggregation of two different clusters: on the one hand the luxury giants with the EBIT at 24.4%, lower only than the profitability of the pharmaceutical companies (25.1%), and on the other the mass-market players with 9.7%. Hermès confirms itself in first place by far (ebit margin at 41.5%), ahead of Chanel (34.1%) and LVMH (31.5% net of the ‘selective retailing’ division). Followed by Moncler (29.8%), first Italian in the ranking, and Kering (27.5%). Investments exceed 2019 levels: +29.4% compared to 2021 and +24.8% compared to 2019. Luxury groups record an investment intensity that is more than double that of those oriented towards the mass market: 9.4% vs 4.5% the ratio between investments and revenues. The Italian big companies stand out for the highest average investment rate, equal to 13.5%, more than double the sector average (6.4%), and higher than the French one (9.9%). The podium is all Italian: Valentino (23.6%), Otb (20.2%), Prada (17.2%). Purchases of own shares also intensified, exceeding pre-pandemic levels (+81.5% on 2019) and reaching the record in 2022, with an acceleration for European groups compared to North American ones (+135.4% vs 66.6%) which, however, accounted for 68.7% of the total purchases.
In 2022 the fashion giants distributed 24.8 billion in dividends, also in this case a record for the four-year periodequal to +17.5% on 2021 and +15.4% on 2019. On the balance sheet front, fashion multinationals enjoy a more solid financial structure than large-scale manufacturing (financial debts on net capital at 67.1% vs 71.0%), with the European groups more capitalized than North American ones (57.0% vs 115.7%).
Italian fashion is far from the spotlight of the stock exchange: only 18.4% of the aggregate turnover (15.8 billion euros) is produced by the twelve listed bread companiesL. Listed companies, we read in the report, have an average turnover of 1.3 billion, almost double that of unlisted ones (0.7 billion), a higher profitability (ebit margin at 14.6% vs 10.4%) , as well as the international projection (75.0% of exports vs 62.0%). At the end of 2023, listed companies reach a capitalization of 42.1 billion (+5.3% on 2022), equal to 3.8% of the value of Euronext Milan (2.9% in 2019), excluding Ermenegildo Zegna and Prada , listed abroad. As of 31 December 2023, the stock market podium is occupied by Moncler (15.3 billion euros), Prada (13.2 billion) and Brunello Cucinelli (6.0 billion). In fourth place is Ermenegildo Zegna (2.6 billion), followed by Salvatore Ferragamo (2.1 billion).
The first nine months of 2023 of the major global fashion players mark an increase in turnover of 8%, with the Asian (+9%) and European markets (+8%) aligned, but North America is suffering, the only geographical area in decline, after being the most brilliant in 2022. According to the Mediobanca report, the first evidence for the whole of 2023 confirms a further year of growth (+7% on 2022), albeit at a slower pace than the previous one, with a more pronounced increase for the luxury groups with +9%. Furthermore, the macroeconomic context, the solid fundamentals of the sector and the stabilization of growth after the brilliant post-pandemic results suggest a future consolidation of the sector with further investments by multinationals in the supply chain and in strengthening supply chain control. For 2024, a slowdown in growth is expected, stopping at +4%, also supported by the increase in price lists implemented in recent months and by an acceleration of tourist flows.