Brunello Cucinelli (BC) H1 2024 TU earnings summary

Executive summary

• Preliminary H1 2024 revenues reached €620.7 million, up 14.1% year-over-year at current exchange rates and 14.7% at constant rates, with all regions and both retail (+14.7%) and wholesale (+13.1%) channels contributing to growth.

• Americas led growth with a 19.4% increase, followed by Asia at 14.3% and Europe at 9%, with balanced sales across geographies, channels, and gender.

• Strong brand momentum and positive order book support a 2024 sales growth forecast of around 10%, with similar expectations for 2025 and a long-term plan to double turnover by 2030.

• Launched a new AI-driven corporate website, enhancing both internal culture and customer engagement.

• Hosted the Second Universal Symposium on Soul and Economics, focusing on ethics, AI, and humanism.

Financial highlights

• H1 2024 revenues: €620.7 million, up from €543.9 million in H1 2023 (+14.1%).

• Retail channel revenues grew 14.7% to €395.2 million; wholesale increased 13.1% to €225.5 million.

• EBIT margin projected at 16.6%-16.7% for 2024, with net profit growth of +10%.

• Investments expected at 9%-9.5% of turnover for 2024, with higher CapEx in 2025 due to factory expansion.

• Dividend payout policy remains at 50% of profits.

Outlook and guidance

• 2024 turnover growth guidance confirmed at around 10%, with similar expectations for 2025, supported by strong order intake and positive sellout trends.

• Full-year margins expected to be slightly better than previous years, with a focus on fair and sustainable profit.

• Long-term plan targets doubling turnover by 2030, underpinned by manufacturing investments.

• No signs of slowdown in China or the U.S.; growth expected to continue, with some deceleration in H2 due to a high base in H2 2023.