Brunello Cucinelli SpA End of Year Update Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrea Randone - Intermonte SIM SpA - Analyst : (interpreted) I have a few questions. Here they come. So I have a question on marketing first. For 2025, would you please remind us of the impact of marketing? Do you expect that percentage to remain constant? Because you did mention some initiatives for 2026, but it's always interesting to understand what we can expect. It's maybe not going to be as innovative as this year with the film, but we are really interested in trying to understand what you have in mind for next year, too. Unidentified Company Representative (interpreted) Is this your only question? Sorry, I can't hear you anymore, Mr. Randone. So we'll take your question in the meanwhile. So we normally spend 6.2, 6.4, 6.3. In the last three years, we did 6.8 and 6.9, and it's going to be 6.9 again this year. And starting next year, we're going to go back to 6.4, 6.5 because, of course, the cost of the movie was quite sensible. Then you said you have more questions?

Question: Chris Huang - UBS AG - Analyst : Firstly, congratulations on the film and also the very encouraging constant FX guidance you just provided. So I have two, please. The first one, specifically on Q4. So you mentioned in the press release that you expect Q4 the retail channel to be in line with Q3 at constant exchange rates. Could you just maybe confirm what was the number you saw in Q3 because you don't disclose normally constant FX growth by channel. But if we do a rough calculation, it seems to be (inaudible) so is that the expectation you have for Q4 retail FX neutral? And connected to this, what are the regions and nationalities you are seeing that is driving this underlying acceleration given the tougher comp base? Secondly, on marketing, just a follow-up to the commentary you just provided. So if I caught it correctly, you said marketing around 7% in 2025 and that budget will slightly normalize into 2026. So should we expect your EBIT margin in 2026 to see a more meaningful expansion compared to the slight improvement you are expecting in 2025? Unidentified Company Representative (interpreted) Thank you, Chris. Luca will answer this question on margin.

Question: Charles-Louis Scotti - Kepler Cheuvreux SA - Analyst : Yes. I have two, please. The first one, could you remind us the breakdown of the 11%, 12% constant FX growth in '25 between volumes, prices, and mix and also the key building blocks behind your 10% constant FX guidance for next year, and more specifically, the expected pricing contribution? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 5:00PM, BCU.MI - Brunello Cucinelli SpA End of Year Update Call And second question regarding your e-commerce. Could you remind us the size of your e-com business and the split between DTC and wholesale? And do you have any long-term ambitions for e-commerce revenues or should we view it primarily as, I don't know, a tool to support your omnichannel clients and a discovery channel to recruit new customers? Unidentified Company Representative (interpreted) Okay. I'll take the second question first, if you don't mind. Now for the e-commerce launch, we don't have any special ambition

Question: Maria Meita - Sanford C Bernstein & Co LLC - Analyst : I just have one and for clarification, regarding your guidance for 2026, is a 10% growth at current or constant exchange rates? Unidentified Company Representative (interpreted) Well, it's always the same target. I mean we start at the beginning of the year with a 10% target, and we've been doing this for 14 years. The impact of exchange rates has always been very, very limited. This year, it was a bit higher. Maybe next year, it's going to be similar. It swings a bit, but we'll see as we go during the year. But our order of magnitude at the beginning of the year is always the same. We want to grow it around 10% to still be extremely exclusive.

Question: Oriana Cardani, CFA - Intesa Sanpaolo IMI Securities Corp - Analyst : (interpreted) I actually have three questions. First will be about the performance in Q4 of the retail channel. So what is the impact of like-for-like growth versus the (inaudible) new openings? What's the impact of this on the double-digit growth you expect for Q4? And the second question is about new openings, extensions, new concessions starting in 2026. What estimated impact of those on the growth you expect next year for retail? And third question is about the beautiful docu film you just presented and -- in Rome on December 4. So what kind of distribution do you envisage for the film outside Italy? Is it going to be circulated to America and Asia? Is it going to be accompanied by special events? Unidentified Company Representative (interpreted) So as far as the contribution of new openings and the retail growth, this year was very beautifully balanced between growth on the comparable basis and the new openings or expansion. Then as to the value of concession in 2026, you, Oriana, should consider that when they are performed during the year, the gap between wholesale and retail is offset each other because on the one hand, the wholesale is for the whole -- it's true that the retail value is higher than the wholesale, but over time, distribution basically translates in a zero effect in the first year. There will be a shift from wholesale to retail. Then as for the movie, Oriana, we will have loads of events, Japan, America, across the board. Well, a last for me, but there's also Carolina, Riccardo, they will be going there, too. But we are very pleased that the feedback was particularly pleasing because that's the name of the brands and the titles. So the London prize for the style because you see the awards we received in London was not for the product, but for the whole lifestyle, putting together luxury and design. So that's a very strong message. Then the movie. So this seems to augur well. But I've always thought that when you stop wanting to travel, then you have to stop. So now that young CEOs will be traveling more than me. You see, I went to the premier in Rome the other night, and I came back at 3:00 in the morning. So I was wondering, God, I wonder if I'd be awake for the call. But the idea, Oriana, is that the movie was directed by a man with a soul. Thank God, you see, it bears the name of the brand, and they say that it can be very successful abroad, too. So I would -- as I keep saying, Oriana, tomorrow, we should be known better -- sorry, less than today. So we only have 500,000 customers at the end of the day. Thank you, Oriana.