Brunello Cucinelli: double-digit growth in revenues for 2015

The Italian cashmere maker forecast on Tuesday double-digit growth in revenues this year after its core profit rose 8.4 percent in 2014 thanks to resilient high-end luxury demand.

Investors wanted to take profit while the momentum lasts, sending the stock down in Milan Wednesday.

The stock Brunello Cucinelli has suffered a fall of 5.08 percent to 18.31 euro.

The upscale cashmere retailer ended the past year with a net profit (excluding minority interests) of 33.06 million euro, compared to 30.45 million in 2013.

Given the growth, the management at Brunello Cucinelli has proposed the distribution of a a dividend of 0.12 euro per share, slightly higher than the 0.11 euro distributed last year.

On the downside, analysts following the stock at Kepler Cheuvreux and NatIxis worsened their rating on shares of Brunello Cucinelli from ‘buy’ to ‘hold’, both reducing their price target on the stock from 19 euro to 18 euro.

Meanwhile, Nomura has set its price target for the Italian retailer at 18 to 18.5 euro price target on the company and reiterated that the company needs to reduce the exposure of its portfolio.