...July 29, 2024 We believe Flos B&B Italia SpA sales will remain flattish in 2024 after a material contraction in 2023. The company's reported revenue declined by 9.5% in 2023, mainly due to weaker consumer confidence in core European markets, particularly the Nordic region. The Louis Poulsen brand (18% of total sales) posted the most pronounced sales decline, dropping by 26.6%. Other core brand B&B Italia (33% of total sales) declined by 5.9% and Flos (32%) by 9.2%. The wholesale channel (representing half of the company's sales) showed a 15.8% decrease in sales, having been negatively affected by the rationalization and termination of some non- profitable contracts. We estimate sales will remain flattish at about 790 million-800 million in 2024, representing 0%-1% growth year-on-year, supported by the opening of new shops in the U.S. and the ramp-up of Fendi Casa stores in China. Additional price increases and the company's strong pipeline of new projects including high-end contract developments...
