Brunello Cucinelli (BC) Trading Update summary

Financial performance and guidance

• 2025 is expected to close as a record year, with revenue growth at constant exchange rates between 11% and 12%, and around 10% at current rates, surpassing initial expectations.

• 2026 revenue is projected to grow by approximately 10%, supported by a robust order book and positive market feedback, while maintaining brand exclusivity and balanced growth.

• EBIT margins are set to slightly improve in 2025 and 2026, with EBITDA at 21% and investments at about 10.5% of revenues in 2025, reducing to 7% in 2026.

• Inventory remains steady at 28% of revenues, and the net financial position is about €200 million, with dividends targeted at 50% of profits.

• Healthy profit growth and solid margins are expected to accompany the sales increase.

Market and sales trends

• Strong sales performance in all regions, with China leading double-digit growth in Asia and robust results in America and Europe.

• Retail channel growth in Q4 is expected to match Q3's 15% at constant exchange rates, with a balanced contribution from like-for-like and new openings.

• Wholesale channel remains stable, with growth fully comparable year-over-year and strong relationships with top global clients.

• E-commerce represents about 7% of direct sales and 12.5%-13% including multi-brand, serving primarily as an image and discovery tool.

• Despite a less lively overall market and new US tariffs, demand at the high end of luxury remains strong, with no negative impact on customer behavior or brand perception.

Strategic initiatives and investments

• Completion of the 2024-2026 Made in Italy artisanal production plan, including doubling the Solomeo factory and opening new outerwear factories in Penne and Gubbio, was achieved ahead of schedule.

• Planned investments for 2026 are around 7% of revenues, focusing on commercial network expansion rather than production facilities.

• Over 200 new employees joined in 2025, bringing fresh skills and energy to the company.

• New store openings and expansions in key cities such as London, Paris, LA, Macau, Shanghai, Geneva, Toronto, Mexico City, Abu Dhabi, and Wuhan.

• Launch of an AI-powered e-commerce platform in mid-January 2026, described as a genuine innovation.