Q3 2024 Brunello Cucinelli SpA Corporate Sales Call Transcript

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

Question: Flavia Carlino - - Analyst : (interpreted) Good afternoon, Brunello.

Question: Flavia Carlino - - Analyst : (interpreted) So you travel all the time. So I take advantage of this opportunity to ask you a question. Don't travel too much. And Mr. Cucinelli is saying, well, I want to cry. If I think of my traveling plans, it's a bit too much, but actually it's a real pleasure to go all over the place. So please go ahead.

Question: Flavia Carlino - - Analyst : (interpreted) Well, thank you. Thank you very much. Bye-bye, Luca.

Question: Andrea Randone - Intermonte - Analyst : (interpreted) Thank you. Good afternoon, everyone. Good afternoon, Brunello. I have three questions on distribution trust is very easy. You said you're going to open a couple of stores in September, plus you're planning some other openings for 2025 at your, let's say steady pace. But I'm curious, where are you opening new stores? And what kind of thinking is behind choosing individual locations? Then my second and third questions are about multi-brands because this is a topic that has been widely discussed many times with you because you're doing something which is really different from what the rest of the industry seems to be doing now and especially so in this last quarter and this last year. So my question is so, the first question is about the state of health of your multi-brand client. I know you care for the state of health of your manufacturers and they are suitable compensation for future sustainability. But what about the multi-brand stores you work with, of course, business with these good. We can see that from your financials. But what about the rest of the business? Can they actually manage a healthy business or do you think someone is a bit more fragile, so to speak? A third question on multi-brands again, just like for retail stores. What kind of initiatives are you planning for 2025? Are you opening in new regions or new contacts? Where are you planning to expand your customer base in the future through multi-brands?

Question: Andrea Randone - Intermonte - Analyst : (interpreted) Thank you to both for your answers.

Question: Oriana Cardani - Banca Intesa - Analyst : (interpreted) Yes. Thank you. And good evening, Brunello. Good evening, everybody. I actually have three questions. The first one has to do with the launch of the new fragrances that you presented in September. If you can give us a bit more color on the channels where there will be a showcase first and also the geographies, the success of the initiative, whether you feel that in a few years' time, you might also enter cosmetics and beauty, the beauty sector. The second question has to do with the online sales. So they were pretty buoyant in the third quarter. Also thanks to advertising and also the successful new website.

Question: Oriana Cardani - Banca Intesa - Analyst : (interpreted) Oh, you didn't even know about the price. Did you? Thank you.

Question: Daria Nasledysheva - Bank of America - Analyst : Good evening, Brunello. Hi, everyone. This is Daria Nasledysheva from Bank of America. Thank you very much for taking my questions. I have two. So the first one, could you please comment on most recent trends that you have been seeing since the start of October? I'm conscious that very little time has passed, but any color would be much appreciated and if you're seeing any change versus the third quarter. And my second question would be if you could please provide any color on demand by nationality within the quarter. So Chinese, European American in comparison to the second quarter, both locally on offshore. Thank you very much.

Question: Daria Nasledysheva - Bank of America - Analyst : Would you want me to repeat my second question?

Question: Adrian Duverger - Goldman Sachs - Analyst : Hi, good evening, Brunello. Good evening everyone. Thank you very much for taking my question. So the first one would be on the, on the resilience from the higher spending cohort. Could you please comment a bit on this? Has, has there been an increase in the proportion this year versus last year? And if so, have you seen any difference between geographies? For example, in Europe, United States and China and my second question would be on investments. How are the new facilities under construction in Italy when [penne] and good you progressing versus your expectations? And how do you expect the additional supply to evolve over the next three years? Thank you very much.

Question: Chris Huang - UBS - Analyst : Hello. Hi, good evening. It's Chris from UBS. Congratulations on the results and I have three questions, please. My first one is just a clarification on the retail trends. You earlier commented on in October if I understood correctly, can you just confirm that the retail channel is still growing around double digit? My second one is on comments you made on wages being 80% fixed. If you can just elaborate a little bit more on the wage structure and the remaining 20% does that mean the more sales you generate, the less the wages go up in proportion to the sales growth? And my last one more high level question, you seem very confident in growing also 10% in 2025. And of course, you mentioned the way you treat your consumers and their brand positioning. But what do you think is so unique in your business that allows you to continue to grow in this kind of natural double digit rate and continue to operate from your sector peers? Thank you. 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 17, 2024 / 4:00PM, BCU.MI - Q3 2024 Brunello Cucinelli SpA Corporate Sales Call