Brunello Cucinelli: Strong 2024 End; Shares Look Overvalued

Narrow-moat Brunello Cucinelli closed 2024 with its best-ever quarter, reporting EUR 358 million in revenue, an 11.6% year-over-year increase. This aligns with the company’s guidance and our forecast, bringing full-year revenue to EUR 1.278 billion, up 12.2% from 2023. We commend Cucinelli for delivering strong results during a challenging year for the luxury sector while maintaining reliable guidance. For 2025, the company projects turnover growth of around 10.0%, a reasonable estimate given its countercyclical performance and the anticipated impact of its new factory rollout. Our fair value estimate remains at EUR 64 per share, which we reaffirmed recently.