One of the stocks we like in consumer is Moncler.
Moncler is a luxury apparel company. The reason we like it is combination of attractive growth profile and strong returns profile.
On the growth front, it's a brand that is under exposed at the moment, therefore it's got significant opportunities in terms of space growth and that's going to drive the top line. Secondly in terms of like-for-like, it's a brand that is very liked by consumers and, therefore the like-for-like growth remains strong, we think that will continue. And the CEO and creative director is ensuring that the brand remains fresh - that newness and innovation remains high and we therefore think that that will contribute to the top line growth.
In terms of returns, the CEO is very protective of the brand, ensuring that inventory levels are maintained at reasonable levels and therefore margins are protected and returns on invested capital are high.
In fact, the company generates one of the highest returns in the industry, which is pretty unique. And that's the reason why we like it.
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