Brunello Cucinelli reported solid half-year financial results with EBIT margins remaining stable. The company completed its factory expansion ahead of schedule. Management is confident in executing its 10-year strategy of 10% annual sales growth with steady operating margins. EBIT margin only dropped slightly despite factory expansion, supporting further margin expansion. Sales are expected to grow by 10% for the full year. Shares are considered overvalued at current levels with a fair value estimate of EUR 68 per share. The brand continues to outperform peers during the luxury slowdown due to its affluent customer base.

Read more at Morningstar: Margins Hold Up Despite Increased Capacity