Brunello Cucinelli Earnings: Strong Start to 2025; Fair Value Up by 6%; Shares Still Overvalued

Brunello Cucinelli reported a 10.5% year-over-year increase in sales for the first quarter of 2025, solid numbers compared with peers so far. We are raising our fair value estimate to EUR 68 from EUR 64, while maintaining our narrow moat rating, reflecting the updated model for the full-year results and slightly lower cost of capital, which we adjusted in response to the company’s increased net debt level. Despite the recent market selloff, which sent the stock down by approximately 27% from its mid-February 2025 peak following accelerated concerns over the US international tariffs, we continue to view shares as significantly overvalued at current levels.