Brunello Cucinelli (BC) Investor Update summary

Strategic outlook and board activities

• Year-end board meeting focused on long-term strategies and plans for the next 5–10 years, considered the most important of the year.

• Extensive global travel and investor engagement, including meetings with 180 investors and high-profile events in Shanghai, Dubai, New York, and Los Angeles.

• Artisanal events and exclusive gatherings are used to strengthen relationships and brand image.

Financial performance and outlook

• 2024 turnover is expected to increase by 11–12%, surpassing initial guidance, with Q4 growth aligning with Q3's strong results.

• Balanced profit anticipated, with EBIT margins slightly improving over the previous year, supported by strong sales and high-quality order intake for 2025 collections.

• Regional growth: USA 15–17%, Europe 5–7%, Asia 12–14% (China 10–12%), e-commerce 9–10%.

• Retail channel growth 12–14%, wholesale 8–10%; retail accounts for 66% of revenue.

• Annual revenue growth of around 10% projected for 2025 and 2026, aiming to double turnover from 2023 by 2030.

Market trends and operational insights

• Noted improvement in Asia, especially China, with like-for-like growth and no space expansion.

• Customers are spending more time in stores, with 70% having researched products online beforehand.

• Emphasis on exclusivity, customer experience, and maintaining a warm, non-aggressive store atmosphere.

• Pricing sensitivity is rising, even among affluent customers, with concerns about affordability and value.

• Multi-brand partners provide critical feedback on collections and highlight the need for novelty over evergreen items.