On the contrary: the brand is recording 22% sales growth in 2023, and sales are expected to top the billion euro mark. On this subject, see our article from last summer, Brunello Cucinelli: A Faultless Journey.

Progress is well distributed across all geographies and sales channels. We note that, unlike several of its peers, including Prada, the brand intends to continue balancing its sales between its own sales network and its distributors.

However, management anticipates a slowdown in this expansion over the next two years, with growth expected to hover around 10%. Nothing surprising here: we appreciate the fact that targets are being kept at realistic levels, which do not preclude pleasant surprises.

This morning, the market reacted very well to the press release announcing the results, not least because Brunello Cucinelli confirmed that its shares will be included next week in the FTSE MIB - Italy's main stock market index. These inclusions often trigger waves of automatic purchases by index funds.

At fifteen times EBITDA (operating profit before depreciation and amortization) expected for 2025, the valuation remains relatively reasonable, especially for a genuine luxury brand that has managed to quadruple sales and profit over the last decade, as well as maintain a remarkably high return on invested capital.

There is no doubt that Brunello Cucinelli would command a much higher valuation multiple if it became the acquisition target of a major luxury name. A group like Kering, for example, would be an ideal candidate in terms of strategy and corporate philosophy.

One can only dream. Until now, the Corciano-based brand has jealously guarded its independence. As we wrote last summer, as long as it's doing so well, there's little reason for that to change.