Italian luxury-fashion company, Brunello Cucinelli, has seen a boost in its shares after revising its sales expectations for 2023. The company attributes this upward trend to positive developments in recent months.
As of 0908 GMT, Brunello Cucinelli shares are up by 4.4% at EUR86.00. This increase adds to the company’s recent gains and brings its year-to-date rise to an impressive 24%.
Initially, the company had projected sales growth of 20% to 22% excluding currency fluctuations. However, Brunello Cucinelli now anticipates that sales for 2023 will slightly surpass 1.1 billion euros ($1.20 billion). This new estimate represents a growth rate ranging between 22% and 23%, again excluding foreign-exchange movements.
Brunello Cucinelli is confident in achieving an attractive profit for the year, citing the quality of sales as a key factor. Although specific figures were not disclosed, Executive Chairman and Creative Director Brunello Cucinelli stated, “Furthermore, given the excellent order intake for Autumn-Winter 2024, we envisage a flattering 10% growth in turnover and a fine profit for next year.”
Equita SIM, an investment bank, responded to this positive news by increasing its net profit estimate on Brunello Cucinelli for 2023 by 3%.
Equita analyst Paola Carboni expressed optimism about the company’s outlook, noting that a positive reaction was expected due to the optimistic tone during the October call. Carboni also highlighted that Brunello Cucinelli’s stock has outperformed its peers in the sector over the last three months, with a 12% increase compared to an average decline of 7% among competitors.