Gold prices edge higher; Fed indepedence fears spur safe haven buying
Investing.com -- Brunello Cucinelli (BIT:BCU) posted a 12.9% increase in operating profit for 2024, with the Italian luxury group reaffirming its forecast for around 10% sales growth in both 2025 and 2026.
The company’s shares fell more than 2% in European trading Friday.
Earnings before interest and taxes (EBIT) reached 212 million euros ($230.4 million), coming in just below analysts’ expectations of 214 million euros, according to LSEG data.
EBIT margin for the year stood at 16.6%, up 20 basis points year-over-year. This marks another record-high profitability in the company’s history.
UBS analysts said this points to a “modest yet steady improvement in the underlying operating leverage of the business, which was partially offset by ample investments for the long-term given the unchanged "Humanistic Capitalism" philosophy of Mr. Cucinelli.”
The company highlighted a "very interesting" sell-out of its Spring-Summer 2025 collection, while noting that order intake for the upcoming Fall-Winter season showed "particularly positive results."
Despite a broader slowdown in the luxury sector, Cucinelli maintained strong momentum, with full-year revenues—previously disclosed in January—rising 12.4% at constant exchange rates. The company attributed this resilience to its positioning in the high-end segment.
Looking ahead, Cucinelli plans to increase investments aimed at expanding production facilities, raising capital expenditures to 9% of turnover for the 2024-2026 period, up from 7% in 2023. The goal is to double manufacturing capacity by 2033.
“We consider BC having a more resilient earnings momentum profile vs. peers, which underpins the valuation premium vs. the sector in the current gloomy backdrop,” UBS analysts continued, reiterating a Buy rating on the stock.