Brunello Cucinelli (BC) investor relations material

Executive summary

• H1 2026 revenues reached €749.4 million, up 13.3% at constant exchange rates and 9.5% at current rates, with strong global brand momentum and boutique performance across all geographies and channels.

• Retail channel grew 19.3% at constant rates, with double-digit increases in all markets; wholesale rose 2.7%.

• EBIT increased 12.6% to €128.2 million (margin 17.1%), and net profit rose 2% to €78.2 million (10.4% margin).

• Investments totaled €57.2 million, mainly for commercial expansion, with production investments declining after major factory completions.

• Net financial debt rose to €225.1 million, mainly due to front-loaded investments and dividend payments, but a significant reduction is expected by year-end due to strong cash generation.

Financial highlights

• Gross margin improved by 50 bps to 75% of revenues, driven by favorable sales mix and retail growth.

• Personnel costs increased 10.2% to €138.4 million, reflecting retail network and workforce expansion.

• Rental costs rose 12% to €117.3 million due to new store openings and expansions.

• Net working capital stood at €317.6 million (21.6% of LTM/rolling revenues), with healthy trade receivables and stable inventory levels.

• Inventory incidence was 28.6% of LTM/rolling revenues.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 10%-11% at constant exchange rates, with 2027 revenue growth expected at around 10%.

• EBIT margin expected to reach around 17% for 2026.

• Investments projected at 6% of revenues for 2026 and the next three years, with production investments completed.

• Net financial position to improve, targeting 11-12% of revenues.

• Anticipates strong second-half performance and appreciable reduction in net financial debt by year-end.