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.

• The brand maintains a balanced sales profile across geographies, channels, and gender, with Americas +19.4%, Europe +9%, and Asia +14.3%.

• The company is experiencing positive momentum in brand image and expects to maintain a healthy growth pace of around 10% for both 2024 and 2025, with balanced profits.

• Major investments are underway to double the Solomeo factory and expand Italian manufacturing, supporting plans to double turnover by 2030.

Financial highlights

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

• EBIT margin is projected to slightly increase to 16.6%-16.7% for 2024, with net profit growth of +10%.

• Investments are expected at 9%-9.5% of turnover, with 1.5% carried over from 2023.

• Accessories account for 15% of turnover, growing in line with apparel.

• Dividend payout remains at 50%.

Outlook and guidance

• 2024 turnover growth guidance confirmed at around 10%, with similar expectations for 2025 based on 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.