(AOF) – Italian luxury group, Brunello Cucinelli (-0.65% to 84.20 euros) declines on the Milan Stock Exchange despite record sales in 2023. Over this period, its turnover has increased by 23.9% to 1.139 billion euros. It increased by 26% at constant exchange rates. After an excellent performance over the first nine months, the company also achieved a historic result in absolute value in the fourth quarter, with a turnover of 321 million euros, an increase of 15.6% year-on-year. .
Brunello Cucinelli saw growth of 30.2% in retail for the whole of 2023 and 13.4% in wholesale.
The luxury group has thus achieved its sales objectives for 2023. Last December, it announced that it was targeting an increase in its sales of nearly 22-23%, slightly exceeding 1.1 billion euros, at current exchange rates against a previous forecast of +20-22%.
Following the solid results from Brunello Cucinelli, UBS remains Buy on the stock but has lowered its price target from 101 to 99 euros. The broker justifies its decision by explaining that it took into account the drop in the valuation of the sector.
UBS also confirmed its forecast for an Ebit margin of 16.6% in 2024, an improvement of 20 basis points.
On the outlook side, Brunello Cucinelli shows his optimism for the year 2024: “the significant orders in our portfolio for the spring-summer 2024 collection and the excellent start of sales in our own boutiques and multi-brand stores allow us to be very optimistic for the first half of this year. Taking all these elements into account, we are looking at growth of around 10%.
In addition, already last December, Brunello Cucinelli announced that it wanted to achieve “revenue growth of around 10% in 2025, supported by “planning and the structural characteristics of demand for high-end luxury products.”
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