(News Bulletin 247) – This young Italian company has raised its growth forecast for 2024, counting on an increase of 11% to 12% for 2024 compared to 10% previously.

If luxury is going through a difficult year in 2024 with a marked slowdown in demand, particularly in China, certain groups are managing to do well. In Paris, Hermès shares have increased by 18.8% since the start of the year. year, thanks to growth that seems to resist all tests.

The leather saddler, however, is not the only luxury group to survive. This is also the case for the Italian Brunello Cucinelli. This company founded in 1978 and listed since 2012 in Milan specializes in cashmere, and offers sober designs in line with the trends of sobriety and “quiet luxury” in the sector. In 2023, its revenues had reached 1.14 billion euros.

This Thursday, the Italian group’s shares jumped 6% in Milan, bringing the increase in its shares to 15.7% since January 1.

The action is supported by the announcement of an increase in the Italian company’s growth forecast for 2024. Brunello Cucinelli indicated that it expects for the current financial year an increase in its revenues of between 11% and 12% against an increase of around 10% previously. According to Stifel, analysts were forecasting growth of 11% for 2024.

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An acceleration in Asia

The transalpine label also indicated that its activity in the fourth quarter should be “in line” with that of the third quarter, when its growth reached 9.2%.

“Estimated growth communicated by management for 2024 by geographic region (Europe at +5%/+7%, Americas at +15%/+17% and Asia at +12%/+14% with China at +10%/+ 12%) suggests growth in Asia in the fourth quarter is visibly reaccelerating,” writes Oddo BHF in a note.

The broker believes that China should see an improvement in its dynamics in the fourth quarter. “This performance undoubtedly reflects a growing appeal for the brand, which still remains under-represented in China, rather than a market context that has become much more favorable,” he adds.

Brunello Cucinelli also indicated that he anticipated growth of 10% for both 2025 and 2026.

The group “proves to be an industry winner, in our view, combining the best revenue resilience, visibility and one of the most defensive exposures in the sector with compelling medium-term growth opportunities,” appreciates Stifel.

After the communication from the Italian company, the other luxury values ​​are rather well oriented. Kering takes 1.3%, Hermès 0.8%. LVMH is almost stable (-0.2%) after opening up more than 1%.

“Two positive news for luxury occurred this Thursday. First the Chinese media reported that major cities were going to launch new vouchers (purchase vouchers, Editor’s note) to help consumption. It’s a small sign positive But at the moment, every small positive sign on consumption is welcomed positively in the luxury sector on the stock market,” explains Jie Zhang, analyst at the independent research firm Alphavalue.

“Then, Brunello Cucinelli raised its outlook for 2024. Brunello Cucinelli is a big winner from Covid who has benefited from positive trends in “silent luxury”, with classic designs, sober quality, which last over time, and materials “In terms of positioning, the most immediate comparable remains the Loro Piana brand from LVMH and to a lesser extent Moncler,” she adds.