Preliminary Q3 2025 Brunello Cucinelli SpA Corporate Sales Call Transcript

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

Question: Andrea Randone - Intermonte SIM S.p.A. - Analyst : I have two questions, one on the business and the other one on Russia business. So very good numbers there. It was perhaps a further comment on revenues in Asia that were particularly buoyant. Perhaps you can give us some colors on this and specifically Japan and if something has to be reported -- pointed out on retail or wholesale, if everything is -- or not? Second question, very interesting details you provided on Russia. And as an outsider, I wonder what are these customs checks. Did something specific happen in the past few days? Or are you just talking about the regular frequent checks? Yes, let's start from here.

Question: Chris Huang - UBS AG - Analyst : I have three, if I can. The first one is on the trends you are seeing in the business. If we look at your retail performance in Q3, it seems like it saw quite a big acceleration versus Q2. So I'm just wondering what are the trends you're seeing within the quarter. I know this is not something you usually comment, but given that you're the first in the sector to report, would it be able to give us a little bit more flavor in terms of maybe September is growing faster than the quarterly average? Anything like that, that would be very helpful. Secondly, on a more kind of a P&L structure, can you just maybe remind us of the way you report? Because I think recently in the market, there's a lot of debate around cost of goods sold. And if I remember correctly, you report production costs. So can you just remember -- remind us of what is the difference between the production cost report and then the typical cost of goods that we see for a company? And last but not least, on wholesale. I think currently, the wholesale channel is around one-third of your sales on a global level. Do you expect maybe perhaps in the future that this channel continues to decline in terms of its reliance? And do you have in mind a relative kind of ideal channel exposure you have for the midterm? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, BCU.MI - Preliminary Q3 2025 Brunello Cucinelli SpA Corporate Sales Call Unidentified Company Representative Very interesting, Chris. So let me take your question about the multi-brand trend. So the beginning of the Winter season was very, very good. But please remember, Chris, that if you do -- well, if you look at retail, it doesn't really look like a great moment in time. I mean, people keep asking us how we're doing all the time. And what I'm telling is, well, we do plus 10%, which is quite reasonable, so to speak. At times, people say fashion is in trouble. And so my question is, why don't we just look at '21, '22, '23? Why don't we look at all financials from '21 to '25 altogether? Because if we do put these things together for the fashion industry as a whole, we have a good five-year period. Now as for this season, the general atmosphere is good, started off on the good foot. That's what we felt in the Milan Fashion Week. Of course, I

Question: Charles Scotti - Kepler Cheuvreux, Research Division - Analyst : I have a couple for you. The first one, it doesn't seem to be the case, but have the allegations in the report had any impact on your relationships with your end clients and/or wholesale partners in US, Europe, or Asia or eventually suppliers? And have the allegations led to a request for clarification from, I don't know, various authorities like the Italian market regulator as it was mentioned in the press? And secondly, thank you very much for all the information -- clear information about your exposure to Russia in particular and also concerning your inventory management. Is it your final say? I mean, are you stopping there? Or do you believe it's necessary, I don't know, to appoint an external auditor to testify your statement and definitely remove any doubt on those allegations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, BCU.MI - Preliminary Q3 2025 Brunello Cucinelli SpA Corporate Sales Call And finally, last question regarding the exclusivity of your brand. I totally understand the importance of wholesale multi-brand and outlet partners for you. Do you plan at some point to strengthen the selectivity in terms of distribution in order to prevent some of the less qualitative partners from reselling your unsold goods to online discounters?

Question: Maria Meita - Sanford C Bernstein & Co LLC - Analyst : I have two. First one would be, are you aware of any investigations that the Italian authorities are undergoing following the short seller report? And then the second one regarding Harrods. Could you tell us more about the collaboration with Harrods for the festive season? And also what percentage of your sales would be in the UK. Thank you.

Question: Melania Grippo - BNP Paribas Exane, Research Division - Analyst : Melania Grippo, BNP Paribas. I have two questions. I'd like to know whether in the quarter at European level, you saw any difference in the performance of the different countries, France, Germany, UK, if you can comment on this.

Question: Melania Grippo - BNP Paribas Exane, Research Division - Analyst : You also said that your exposure to Russian market is 1%. In terms of Russian clients.

Question: Melania Grippo - BNP Paribas Exane, Research Division - Analyst : The second question has to do with the exposure to Russian customers, also including traveling, tourists. Any difference? Unidentified Company Representative Well, as far -- so in Europe, everything is going really well. I have to say that the weather helps because this is your classic kind of weather. As you know, the season starts well depending also on the weather in France, Germany, England, Italy. So we can say that the season has started -- was off to a pretty good start. And then Russian customers in the world, well, they are very, very important. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. OCTOBER 01, 2025 / 4:00PM, BCU.MI - Preliminary Q3 2025 Brunello Cucinelli SpA Corporate Sales Call And we find them everywhere. We saw how this changed in Dubai, in Turkey and everything. Melania, we have always maintained usually our sales, so we had high revenues in Russia, but many people moved. We envisage -- yes, of course, we sell to very wealthy customers.

Question: Louise Singlehurst - Goldman Sachs Group Inc - Analyst : Just two questions for me. Firstly, I will just say thank you very much for hosting this call this evening to and bringing forward the results. My first question, just on the underlying regional growth. If we were to take the US and China and exclude the new stores, would you be able to give us

Question: Paola Carboni - Equita SIM SpA - Analyst : The stronger growth that we had in retail in the Q3. How much is this linked to price mix and volumes? And on volumes, I was interested in knowing whether from your research, you can understand how much of this volume growth comes from new customers, so your ability to attract new consumers, thanks to the visibility and everything. Unidentified Company Representative Paola, I'll try and take your question. We always claim that tomorrow, we should be known less than today. And this is what exclusivity means. Yes, things are going well. The Fall-Winter collection was -- received positive feedback in July, and now it's very -- looks very good in stores. And the same went for the summer collection. You see when you come and visit where the collection is presented, you can really realize. When at the start of the season, you disclose your collection if it receives good feedback, you see it matters. So we are going back to the great value of the product. This is very important. you can't always design your best collection. But if you do listen, you can change. When you go back home, you must have the courage to change something because maybe you see this part where a section was not appreciated that much. So Paola, we can say that taste, style, brand exclusivity, it seems that it is garnering quite a good success.