Brunello Cucinelli shares rise on strong revenue growth, 2024 forecast reaffirmed

Investing.com -- Shares of Brunello Cucinelli (BIT:BCU ) rose following the company’s report of strong revenue growth for the first nine months of 2024. 

At 4:12 am (0812 GMT), Brunello Cucinelli was trading 3.8% higher at €96.75.

The Italian luxury fashion house posted a turnover of €920 million, reflecting a 12.4% increase at current exchange rates compared to the same period last year. 

At fixed exchange rates, the growth was slightly higher at 12.7%, underlining continued demand for the brand's offerings despite a challenging global market.

In the third quarter alone, Brunello Cucinelli posted €300 million in revenue, an increase of 9.2%. The company noted that this growth was particularly significant given the already robust performance recorded in the same period in 2023. 

Brunello Cucinelli attributed its strong sales to the positive reception of its Fall-Winter collection and the growing appreciation for the quality and creativity of its handmade, artisan products.

As per analysts at Stifel, Brunello Cucinelli remains a key holding in the luxury sector, showing strong resilience in a more challenging market environment. 

They noted that the company stands out as a sector leader, combining robust top-line stability with one of the most defensive positions in the industry, while also offering attractive mid-term growth opportunities.

The company has also reaffirmed its forecast of a 10% revenue growth for the full year, citing solid sales trends that continued into early October. 

“In the current market environment, we are pleased to see that the scenario for the top segment of luxury and for our brand in particular has not changed, with sales decidedly positive in all geographical areas,” the company said in a statement.

The company’s retail and wholesale channels both experienced robust growth during the nine-month period. Retail sales increased by 13.3%, with a double-digit rise in the third quarter, while wholesale revenues rose by 11%, supported by the continued success of the Fall-Winter collection.

In addition to its clothing lines, Brunello Cucinelli's fragrance segment also saw progress. The company recently unveiled its second collection of perfumes, developed in collaboration with EuroItalia. 

This new offering, which adds six fragrances to its portfolio, will be available by the end of the year and is positioned within the high-end market segment.

“We envisage no changes to cons expectations (even if the LSD €m Q3 beat may be offset by a correspondingly lower Q4) and reconfirm Hold with a €90 PT,” said analysts at Jefferies in a note.

Source: Investing.com