Worldwide net profit margin of Italian luxury goods companies 2016-2017

In 2017, with 20.9 percent net profit margin, Moncler S.p.A. was the most profitable Italian luxury goods company (based on total consolidated revenue and net income). Second in the ranking came Max Mara Fashion Group S.R.L., the women’s fashion company registered a net profit margin of 14.8 percent in 2017. Both companies registered a net profit margin way above the sector average, which was equal to 7.1 percent in Italy.

Why look at the net profit margin?

The net profit margin is calculated by dividing net profit by total revenue and is expressed as a percentage. It is one of the most important financial indicators because it shows how effectively a company can transform sales, and therefore revenue, into profits. Net profit margin is used to compare companies operating within the same sector.

Moncler and Ferragamo

Operating in the same sector but in different segments, Moncler and Salvatore Ferragamo are leaders in the luxury goods sector worldwide. Their success and expansion are quite evident when looking at the revenue. Moncler registered a steadily increasing revenue from 2013 to 2019. The figure grew almost threefold in the period considered reaching a value exceeding 1.6 billion euros. Despite not being as impressive, Ferragamo's revenue also increased remarkably in the last few years, reaching a value of 1.4 billion euros in 2019.