Cucinelli celebrates higher 2024 revenue guidance

(Il Sole 24 Ore Radiocor) - Brunello Cucinelli is trading sharply higher at Piazza Affari, taking the lead. The company's management raised its guidance on revenue growth for 2024 from 10% to 11% to 12%, with the fourth quarter expected to grow by 9%, thanks to retail revenue growth of around 12%. In addition, positive trends in all regions were highlighted, with acceleration in China.

Indications that have led Intermonte's analysts to raise "their 2024/2025 revenue estimates by 0.8%/0.7%, confirming annual growth of slightly more than 10% in 2025. Our 2025 ebit forecast of 239.7 million is raised by 1.8%, corresponding to a margin of 17%'. Furthermore, considering the slightly higher financial expenses, they say, "we are updating our Eps estimates for 2024 and 2025 by -0.1% and +1.2% respectively". Going into detail, the experts point out that third-quarter revenues "were reported higher than our previous estimates and support the positive view on the stock, based on the unique brand positioning and the excellent resilience of management's guidance and plans, even in an environment of high volatility in the sector. Our new target reflects our new estimates and the rollover of our valuation model'.

Positive verdicts also came from Equita, which 'slightly raised our revenue and net profit estimates for 2024 (+1%), with retail sales in the fourth quarter at +12%'. In light of this the analysts raise the target price to EUR 105 'thanks also to the rolling of the valuation'. The experts also point out that Brunello Cucinelli continues "to show robust growth despite the difficult sector context, benefiting from the brand's strong positioning in absolute luxury and an increasingly targeted and effective marketing activity focused on exclusivity and direct customer relations". Equita also dwells on the "favourable geographical mix compared to peers, with greater exposure to the US market and less exposure to the Chinese cluster".