Cucinelli: “A year to be counted among the most beautiful ones. We have achieved important economic and image results”
For the Italian fashion house Brunello Cucinelli closes a golden year literally to be framed. Especially with regards to numbers and image. “It was a year to be counted among the most beautiful ones. We have achieved important results worldwide, both from an economic and image point of view, so much so that we can define this time that has just passed: the year of rebalancing”, commented the executive president. creative director, as well as founder of the homonymous company Brunello Cucinelli. “The Spring Summer 2022 collections and Fall Winter 2022 pre-collections they received great appreciation from both buyers and the international press “.
Let’s start with the numbers. The group Brunello Cucinelli has registered net revenues of 712 million in 2021 in growth of 30.9% at current exchange rates over 2020 driven by an increase of 36.7% in the American market, by + 32.9% in the Asian one, also thanks to the acceleration of Mainland China in the last quarter, and by the +26.5 of Europe . In Italy, the variation on 2020 is over 23.2%. Compared to 2019 i revenues increased at current exchange rates by 17.2%. The note relating to the preliminary results of the fashion group therefore confirms the expectations of one growth “around 10% for both 2022 and 2023”.
The Brunello Cucinelli group estimate of reach 2023 with “slightly higher” results than pre-Covid expectations. “We are progressively returning to the previous levels of profitability at the beginning of the pandemic, which have always found their foundation in the values that inspire us: the right growth, the right profit, the right balance between profit and gift. We therefore have concrete expectations of being able to finish the first five-year period 2019-2023 of our 2019-2028 ten-year plan very positively, and to a slightly higher extent than we had expected before the pandemic began “, commented Cucinelli.
In particular, in 2021 the the group’s investment plan amounted to 61 million. Commercial operations were primarily aimed at expanding boutiques, such as Madison Avenue flagship a New York and Omotesando a Tokyo, to the new openings, to the updating of the image of the show rooms in the world and to the Casa Cucinell projectthe.
The investment plan was supported by the solid company structure, with the cash generation related to operating activities and the results in the management of net working capital that have allowed “di to improve very significantly thefinancial debt characteristic net, equal to approx 23 million as of December 31, 2021, compared to 93.5 million at 31 December 2020 and 30.1 million at 31 December 2019 “, concludes the note.
Brunello Cucinelli, data better than expected: the analysts’ comment
Meanwhile on the stock exchange purchases rain on the group which at mid-session records a jump of 4.31% to 60.55 euros after the best-than-expected data. Equita Sim, that raised the target price by 6% to € 57.5 on the stock, confirming the hold recommendation, it highlights “turnover and debt 2021 better than expected and recent guidance”. Analysts have increased their 2021-2023 earnings estimates by 7-5%. But, “despite the positive newsflow in the short term”, the upside margin of the stock seems to them “limited given the already high valuations”.
Target price also increased aside from Akros Bank, which brought the target price to Brunello Cucinelli from 56 to 57 euros, confirming the neutral recommendation. Revenues in 2021 were “slightly better than expected”, underline these analysts, who then “particularly appreciated the focus on ESG issues that the company highlighted in the press release, which, in our opinion, places the company among the best. in the field”. For Akros Bank “once again the equity story is interesting but expensive”.
Intesa Sanpaolofinally confirms the recommendation add and the target price of € 62.6 on Brunello Cucinelli after the data on revenues for the fourth quarter 2021 higher than expected. “The message was once again focused on the significant prospects of medium-term growth of the brand“, analysts report.
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