Brunello Cucinelli S.p.A. (BC) Earnings Call Transcript & Summary

Good evening, Chorus call operator speaking. Welcome to the presentation of the Extraordinary Results of 30th June, 2020 of the Brunello Cucinelli Group. [Operator Instructions] The speakers will be Brunello Cucinelli, President -- Executive President and Creative Director; Moreno Ciarapica, CFO; and Pietro Arnaboldi, Head of Investor Relations. [Operator Instructions] Now I'd like to give the floor to Brunello Cucinelli. The floor is yours.

So here we are. Welcome back, everybody. Good evening, dear investors, analysts and journalists. First of all, I hope that you are well and safe because this is what really matters nowadays. This appointment, may be, this is may be the most important one in our history. We have -- we celebrate our 42nd anniversary this year since our foundation and listed in the Stock Exchange since 2012. And it is the most important because of this extraordinary time for mankind. We are obviously all here in Solomeo. And we would like to schedule and maybe start this call in an unusual way, that I would like to say backwards. So firstly, year plan 2019-2028, following on to that, a detailed plan for 2022, then a very detailed plan for 2021, then details, some colors on the second half 2020, with drilling and diving in what we are going through, then details on the first half 2020, luckily enough, it is behind our back. And then the last, a very important topic, inventory, excess productions in the first half 2020 and its allocation. So before we start, I'd like to remind you of a very important thing. As of today, the company is the very same as it was on February 28 with 1 single change, Luca and Riccardo have officially been appointed as CEOs. The first one comes from outside of the family. The second one is part of the family. I am the Executive Chairman and Creative Director. And I'd like to say that I really like the way things are, because I think that this structure confers really liveliness and outlook for the company for the future because I'm 66 years of age, and they are 39 and 41, so respectively, Riccardo and Luca. So another important thing, we had 2,024 employees as of February 28. And today, we have 2,024 employees, the same, 1,000 of whom in Solomeo, and the rest, staffing the boutiques all over the world. We are all at work and in Solomeo before coming back to work before resuming our business, we -- everybody was subject to, first, the serological test and then the swabs. And together with the Perugia University had analyzed these samples. We basically decided that we will keep testing our staff until the end of the pandemic. So whoever comes from outside, for example, today we had our Board meeting. All our Board members arrived, whoever had not yet been subject to a test, they had it done. And the others who have had the test did the second one. Then you wait for 1 hour, more or less, and then you can step into the premises. We believe that this helps us work with more serenity, if you will. And it also protects us from any relapse. Meaning, that in all our history -- well, in all these testing, we only identified 4 young asymptomatic cases. And this enables us to really swiftly identify cases and take measures. Another important thing to be mentioned, and you might say, my God, so many important things tonight. But I'd like to really outline the large, the big topics here. From the very first day when the company closed, we established that the time, business that was to be broken down as follows: 40% devoted to 2020, 60% devoted to all the plans for '21 and '22. Let's now start with the first -- the 10-year plan, the 2019-2028. So there is no change in path in our 10-year growth plan. We would like to reach 2028 doubling our revenues from 2019, and with an average of EBITDA ranging between 70% and 80%. You should also bear in mind something important between 2000 and 2019, on average, we grew by 11.23%. But since the company was established in 1978 to the year 2000, we have grown on more or less 12%. So this is our growth path. We would like to still be a ready-to-wear company, absolute luxury ready-to-wear for men, women and kids. And our revenues should be broken down as follows: As usual, 85% ready-to-wear, 15% accessories, with the whole of the production only located in Italy, as it is today, and with 1 single headquarters in Solomeo. And we would like to be here, well, maybe not myself as in for a very, very long time. We want to keep investing in this project of human sustainability that at the end of the day, can be summed up as follows: the safeguarding climate and reducing emissions. This has not changed. And establishing a great relationship with the planet and the wildlife and maybe the pandemic helped us this way. And we would like to also pay a lot of attention to human beings, because this is really what matters in life. So as a whole, we want to keep working whilst we believe in a very healthy, balanced and sustainable growth. You might ask, what has changed? Well, what, in our opinion, there will be a great change in terms of product. You see especially, young people will start wondering, where has this product being manufactured? How has it been manufactured? Has the creation being damaged along the process? And this will definitely decide it for the future because I think that we will go back to using what Mother Earth gives us instead of consuming it. And once again, we will want to strike a fair balance between profit and giving back, which is basically -- because it's a [ blessings ] of this pandemic is some sort of dispute between biology and creation. And the creation is reaching out to us. Then planning for 2022. So well, I would say, it's pretty detailed guidance here. We envisage revenues rising by 10% vis-à-vis 2021. We think that we might go back to EBITDA around 17%. So very close to our standards, our golden standard. Then investments close to our standard once again, 8% with dividends around 50% of profit, as usual, net profit. In 2022, we would like to open just 2, 3 new stores and then expand and extend 3 or 4 stores worldwide, then we would like this 2022 to be a year of rebalancing net financial position. And we think that this is sustainable for the current facilities and structures. Let's now move backwards to 2021, closer to us. So once again, it is a very important plan. This 2021 has been dubbed by us the year of rebalance -- rebalancing. We would like to grow around 15% vis-à-vis 2020. And then later on, or I'll -- will give you details about 2020, EBITDA should be around 13%, 14%. And we want to invest roughly 6% in the coming year, only because just over 1% has been pulled forward to the second half of 2024. Very important projects of struggling between 2020, 2021. In 2021, there will be 4 large extensions of stores that we're very fond of. But you see in some streets, it is not easy to come up with the right location whenever you want it. So we will change location in Tokyo, in Omotesando. In St. Petersburg we have this beautiful building. In New York, we are going to double our space. And of course, it was not really a very cheap lease there. And also the same goes for Las Vegas. And then we want to pay special attention to China, where, as you know, we -- well, we can't really say we have a very small business because it is pushing 10%, we have still room for growth in this splendid nation for us. Splendid because, Cashmere, we source our Cashmere from China. And if the Chinese in future has decided to stop their supply of Cashmere to us, it would be an issue for us. But we have good guarantee that we're going to keep receiving it. So in China, we would like to open 1 important store -- well, we have 2 locations we have to choose from and 3 important expansions. In 2021 already, we envisage a full rebalancing of the NFP. And we want to go back to our usual percentage of dividends that you are very familiar with. By the way, we never canceled the 2020 dividend, but we've just said that we would set the date in November, so that we can distribute them next year. It's just a postponement. Then what about the corporate structure? The -- well, in 2021, the same 2,000 employees. So the -- 40,000 square meters, we are currently housed here in Solomeo should cater for our business for '21 and '22. But after that, we will have to expand, and hopefully, we will have to expand because the needs of the company is growing. Then the production structure, you're familiar with it, 364 subcontractors, in total, 5,000 staff with no financial economic distress there, because you see they do not invest in OpEx in machinery, but only very high-quality handwork. They have all been working like us. And we have received from them many guarantees, for a very healthy and high-quality growth. We can already say something today about them, because by July 30, we will have caught up 100% of the fall/winter production and this delay was due to the 7 weeks' closures. So we caught up on everything and this total recovery gives us the opportunity to envisage a good future. So even if you were to really expand in growth, there will be no production issues because we have skillful and young hands. And you should also know that the people working in these small companies, on average, they are 43, 44 years of age, and 45 years, their owners. So yes, young companies. In our stores, as usual, we confirmed that the next spring/summer 2021 will not have -- there will not be any old, so to speak, garments of 2020. All our stores should display new garments, possibly beautiful garments, and this is not always easy to achieve with very much looked after visual merchandising because this -- because after 3 months of confinement, everybody has really seen so many garments online. So our mind has a lot of images stored, and therefore, it is difficult to invent something new. And then we have been talking about this in the last few days because the collection is coming out tomorrow. Just imagine a sales assistant who says to a customer, a friend customer, like the beautiful movie [indiscernible] friends, the French movie. There is -- there can be very strong relationship between a sales assistant and local customer. Just think in January next year, the sales assistant says, maybe to the customer, why don't you buy this new garment, whereas, you know darn well that it is a past season item. She would never do that, because if the customer was to realize this, she would lose her credibility altogether. And in luxury, and I talk about luxury because that's our world, each and every one of us needs to know that you're buying something new. Then e-commerce. E-commerce is growing really, really well. And of course, we have a very wide structure for e-commerce, both in terms of staff and spaces. So we are ready to double every year. But the important thing here is that you should know that as everybody knows, it is the first place where we can basically really see what we do on -- in our physical environment. So it is a communication tool, e-commerce. So basically, we will face 2021 with a healthy situation from the balance sheet point of view, with wide credit lines made available by banks, the very same that funded our growth. And still today, we can say that we are the classic product of banks. Meaning, they helped -- banks have always helped us a lot with their financing. We decided not to use the credit guaranteed by the state because we didn't want to deprive other companies in distress from this. And this is 2021. Hopefully, we were clear enough in our explanation. What about the second half of 2020? In March, we said that in this special circumstances, our idea was to engage in the debate and discussion with you more or less every month, 1.5 month in order to keep you updated of any changes or events. And moreover, your ideas can be important input for our strategy. In this occasion, we thought it was useful and our duty to communicate all our plans with our budget for 2021 and '22. Of course, it is not very easy to understand and to read this time. But we think that it is our duty towards the financial community, but also towards the whole of the civil society, the whole civil society to express our vision, both on the current year and on '21 and '22. It has always been part of our corporate culture, that's of trying to communicate a long-term planning. I would even say, a 10-year plan, not just a 3-year plan. Hopefully, this time too, we can abide by our plans. Although, we -- it might be a bit difficult to decide for this -- the circumstances, but it is our duty. And here, in Umbria, in our region, we basically are the most important private company. So it is our duty to really lay ourselves bare to express ourselves. And hopefully, this can be a source of inspiration for young people, who are going through this really tough time. If a 20-year-old feel he is something, talking in a positive and confident way, they can change their mood. So we want to really take upon us to this responsibility. So maybe I'd like to repeat what my dear friend, Jeff Bezos, said in the last quarterly results report, when he said it is a time when we need humility, courage and creativity, and he also added money, which is the truth. But I think he was really smart when he provided his vision on the second quarter. And I really like this very much. So we must really take upon ourselves to take our responsibility. And it is something that we owe to ourselves and to others. Just a couple of seconds on this beautiful idea that I have of being light carriers for mankind. As you might know, in the beautiful book about the march of the 100,000, the Chinese march of 100,000 who are these light carriers, light bearers who shed light for the ones following them in the darkness. So I think that it is now our duty to act as a light carriers for those following us so that the path is easier. And I was saying to my wife today, we should all be some small light carriers. Another important thing, since July 1, the past 14 days, well, we decided to look at this second half with a new -- in a new way, defining it some sort of time for rebirth. We start seeing a good mood in people. Of course, it depends on the time you're living in. But there is, at the same time, there is a fair caution. And this is narrowed also by the initial economic figures. So what do we expect from the second half of the year? We expect 2 quarters with a positive sign, whereby, 2020 year-end should be with a slight mild drop of 10% in revenues. And then from the second half, we expect EBITDA to be in line with the margins expected for 2021. So we want to try and read the second half as not impacted by the first one, because, hopefully, if things go like they're going now, we might say, and looking at this central quarter, you see, and jokingly, I say, it would be great in 2020 to have 2 financial statements, the first half and the second half. In the first one, we have to live with it, but we don't want to talk about it anymore. It should be put behind our back. Also of course, we know this is not possible. And the second financial statement is about the second half. We should look at it in -- as some sort of planning to go back to sober normalcy. So what are we doing now? As you know, we are working without having laid off anybody, no redundancies, and we didn't ask for any discount to anybody. We think that this policy of protecting workers and respecting suppliers and landlords is actually yielding great results in terms of corporate credibility. And we are noticing this, when we talk about future projects. We also noticed an extraordinary commitment and a great sense of responsibility from everybody. All this -- all goes well for the future of our company. In the direct stores, they're all open nowadays with the very same situation, a network of [ February ]. We have displayed the fall/winter 2020 collection as usual, with postponed by 1 month. It is now natural. We couldn't possibly display winter clothes in May. So we have fall/winter 2020 displayed. And the 2020 fall/winter production has gone back to its healthy balance both in terms of mono-brand and multi-brand. So all deliveries will end in August as it is usually the case. Of course, there has been no delivery in May and early June. So nothing has changed in terms of deliveries. Another strong topic is collections. This week, we will be presenting all the spring/summer 2021 collections, all physically made and displayed in the differential rooms worldwide for the [ male ] New York, Munich, Milan, Shanghai, Tokyo. And with the very same quantity of styles as last year, hopefully, beautiful ones, it's up to you to express your judgment. No repetition in terms of colors, textiles and styles. And yesterday, we had the general meeting on the taste of the collection about to be released. And we have had quite a positive and excited judgment. Of course, now we have to wait for the feedback from the multibrands and the trade press. The collections are always built to the very same concept to number of styles. You see here too, I don't know whether it is because we are more focused or for some other reasons, I remember, in 2008, during the recession, 2009 fall/winter collection was the best in our history. And my esteemed Pushkin once stated that in the 3 months that he spent outside of Moscow because he was confined there, he wrote the best things in his life. Then investments in the second half of the year. So we opened the London store about a month ago, a beautiful location. And in that case, 2 really high [ relief ] then the second half of the year, we are opening a store in [indiscernible] Paris; we had been looking for location 4, 5 years. St. Petersburg and Tokyo towards the end of the year. Then another important topic is advertising. In this second half of the year, nothing has changed in terms of A&P investments. So at the end of the year, you will have find the very same investments as the past year. And to conclude with this second half, we reconfirm our great conviction and trust in the brick-and-mortar store, which is, it generates -- a true generator of contacts with customers, where the value of sales assistance is very high because these sales assistants are somehow advisers and ambassadors of the brand. And I'd now like to read out the figures of the first half, and let's start from here. Let's start -- first of all, what was the topic of the Board? So the Board meeting has revised the revenues estimates for 2020 and has examined the preliminary net revenues of the first half 2020. Well, first of all, the most positive things, that's the way it is. So a slight decrease of revenues for the year around 10%. Positive performance in the third and fourth quarter. First half strongly impacted with net revenues of minus 29.5% at current constant exchange rate vis-à-vis 2019; Europe, minus 23.8%; Italy, minus 34%; North America, minus 39%; China, minus 19%; rest of the world, minus 19%. Then distribution channels. Monobrand, 31.7% minus, obviously; multibrand, wholesale 23%; wholesale monobrand 27%. Then the 2 lines that I vote about this. The first half of the year was strongly impacted by the pandemic that hit our planet. But already today, we can envisage a positive third and fourth quarters. That should result in a mild drop in 2020 turnover of around 10%. Furthermore, we imagine a sharp recovery in 2021 of around 15%. And we really wanted to say that because this has really changed our life for the better, the following one. The special thanks owed to all of our employees who, with dedication and a remarkable sense of responsibility have enabled us to fully catch up on our fall/winter 2020 production as well as to design and complete the new spring/summer 2021 collections. So we are the very same company that we were in February. So after the first quarter, with a near confirmation of the same number of the previous year, while you know what happened in the second quarter, and I don't want to dwell on that too long. This has given [indiscernible] about the figures I express to you. We will try not to pay too much attention to this, because this is what happens sometimes in the history of mankind. But of course, as I said before, product ranks first as to the -- as far as product is concerned, we think that the taste has steered towards a kind of timeless clothing taste. Well, you see this is also in line with the current times. But there is a softer kind of taste. And to also buy clothes and garments that might last for years. This is just a cycle in fashion. A couple of words on the multibrand. We would like to give you some information as usual, on the multibrand channel. They all -- they have reopened all their boutiques. They have postponed by 1 month the display of 2020 goods for fall/winter 2020 and also the deliveries. Now they're all at work. And we can say that there is a slightly better ambience and environment there than in the U.S. because they know the client/customers in person, very often they're friends, neighbors, and this improves the mood. As you know, we have 500 accounts, high-quality and high level, and no issues from them, never. And none has canceled orders for fall/winter. They just postponed deliveries by 1 month. Out of this 500, 10 of them are department stores. As to the rest, they're specialty stores with a great energy, inspiration in terms of styles, visual, special relationship with the customers. They are -- know -- they know fully well the habits and behaviors of foreign shoppers, but especially local shoppers. Because local customers, sometimes they are even more demanding in terms of taste, and they are the true advisers. So there are a source of great inspiration, especially for clothing, where you know that weight and size of course, makes the difference. It is -- there's a great difference between Hamburg and Athens. I know that this might sound a bit difficult, but I'll give you an example. The collar of the shirt of a Chinese gentlemen must be 0.5 centimeter lower than that of an Italian gentlemen. This is a small detail, but that's what matters in fashion. And now the last very, very important topic. So the inventory of excess garments. Of course all these closures of stores between 2, 3 months all over the world has brought about an availability of excess garments in the first half of this year. Because there were all the deliveries of November, December and the winter. These garments should never be repeated in the next season, in 2021, because, we think this could really damage the image and the contemporary character of the brand. Then nature -- fashion by nature must always have newness and contemporary characters. So these excess garments, we have considered them some sorts of great resource for mankind. So we would like to now explain to you this choice that we have made as an investment for the future of our company, an investment in the great project of living and working in harmony with creation. And we also call it this project reuse of the new, because we're talking about new garments, obviously. In the company, inside the company, we have established and set up a council to support mankind made up of 10 people, 6 of whom come from our family, I, myself, my 2 daughters and their wives -- sorry, and their husbands. And then Luca Lisandroni, the CEO; and then there are franchise quality. Many of you indicated that -- many of you are familiar with them. So we were able to do very important things with these people recently. I'd like to share with you the thoughts that has driven us, has guided us in this choice, just 3, 4 minutes, and then we are open for discussion. So this is a philosophical thought. This is the thought that has guided us, because from several Western and Eastern philosophers, we learnt that there is no absolute evil as well as there is no absolute good. There is always some good in evil and vice versa. Both can teach us something. And bearing all this in mind, we felt the need to gift mankind with the garments which, due to the temporary suspension of sales were left over in other peaks. The manufacturing value in terms of style, the commercial value is always the same, but their meaningfulness has -- was enhanced, [ because now they become a tangible opportunity to the -- to show the new way of thinking capitalism, which sees in the harmony between profit and giving back, one of the most significant humanistic moments. What is the task of this council that we setup? Its task is that of managing a worldwide network, made up of our most sensitive partners and these partners not only have made themselves available, but they were also very strongly, positively motivated by this project and they are more sensitive in the relationship with human beings. Human beings, who dedicate themselves on how to support the needy and we want to send them as a gift, these garments -- how they will in internal organization dealing with this. And all these garments will have this indelible label, Brunello Cucinelli for Humanity. Every single package will be accompanied with a handwritten letter, signed by myself. I'll give you an example. Our partner in Berlin or maybe our Tokyo partner will be liaisons with these very small organizations and he/she will help cooperate with us and together with them we will send small packages with maybe 40, 30, 40 garments to fit and wear. All these garments will be very much sought after in terms of weight and sizes according to the climates and the physical body of the populations. I chose Berlin and Tokyo because I really wanted to point out how important climate and scientists are and we wanted this project to be sustainable over the years. This great quantity of excess garments in this first half 2020 will contribute to supporting in the next 3, 4 years, to supporting the needy. These garments have a production cost for the company, that is roughly around, you see -- it's roughly around EUR 30 million and in the first half of 2020, this will be considered an extraordinary item. This project that we all call, [ intent ], will go hand-in-hand with the other projects started many years ago, that is working really well. This way, we will provide great service to customers and ability to the product. And it consists in repairing, recovering, reusing, all of our products. As you know, we already do -- we have this repairs department in-house. All this goes to complete the great project of human sustainability served through a sustainability, we have always believed in and can be summed up as I said before, ] in safeguarding climate and emissions, looking after the planet and the wildlife and looking after human beings. And to conclude before the Q&A session, we wanted to convey to you our thoughts on this. And in the Board meeting today, you see it was particularly beautiful Board meeting because we have many new Board members. So we have this -- had this great idea for mankind. And considering that we will not be touching the dividends and since we don't carry that much debt, we would like this project to be considered -- considered as an asset instead of a liability. So you are our investors and our guardians too. And we like to call you that way, and also you loving analysts and journalists. So thank you very much for being with us at this very special time for mankind. Thank you. And now we are ready for questions. And of course, you can always strike up a contact with us, whenever you feel the need to. Thank you very much.

[Operator Instructions] The first question from the conference call in Italian, Flavio Cereda, Jefferies.

And best wishes and congratulations to Luca, and Riccardo. 3 questions. First, the multibrand. And of course, there are different definitions as what to a multibrand is. Talking about high end, so-called specialty stores. Last week, I was in Italy. And I went to see many of these multibrands, the best ones. And I think they're working pretty well, thanks to the online. So we know that other brands are actually cutting down on the wholesale network, whereas you seem to keep working with them. So my question is, I'd like your confirmation and also your opinion. How do you see the multibrands in Italy and Europe in the coming 2, 3 years? The second question, the really praiseworthy initiative of Cucinelli for humanity. How can you control that no parallel market is developed then ending up in the marketplace due to some control on that? How can you control and monitor it? And of course, this could all cause issues for you? Third question on the online. You spoke about 2022. In your opinion for 2022, online, what kind of trend do you envisage?

Yes. Very, very interesting, Flavio. Thank you for your questions. First of all, multibrands. I have to say that this morning, we debated long and hard on the note, that you -- on the report that you wrote on the value of the multibrands. We are particularly happy with what you wrote, because it is the first time since our listing that we hear somebody expressing a different opinion on multibrands. So first of all, you said a couple of good things. Let me read it out, just a second. So at one point, you said, we do not share the view according to which, the multibrands are dying off. On the contrary, we have always been very much convinced, so much so that we have 45% of our business in the multibrands and you also make another remark. Here it is. Investors tend to really confuse multibrands with department stores, but these are different realities. And actually, in -- during the call, we did say that we have 10 department stores, but we have 450 specialty stores. These specialty stores, the stores may be EUR 7 million, EUR 10 million, EUR 20 million revenues, beautiful stores. And if you have toured many of these multibrands, you will have noticed the relationship, the great relation between these sales assistants, the so-called brand ambassador and their customers. And this is true, especially for local customers. When I was saying before, you say -- you see we want to have only new garments displayed in our stores. So your remark was very interesting. And then as we were saying with Luca and the team this morning, in my opinion, the level we have achieved in Italy and Europe, well, the promise of it [ even ] achieved that level too, you see 20 years ago, you might remember, they came to us, and we were asking for 10%, 15% advance payments. Now they come to Milan. They make their orders, they're great clients. And in China now, we have 38 multibrand clients that really resemble our European and Italian multibrands. So this is the first answer. Then the second one, how this project takes place? As a matter of fact, it will be a very special project because we will have direct relations with all these people we know in the world. So they -- I don't know, if someone from Berlin might say, I have a small association with 18 people looking after this and that, could you send me 20, 30 garments for 6 people for men, for women? And so it's not that we're going to provide goods for containers, for large associations. This is not the case. It is some sort of multibrand for mankind worldwide. But you know who's going to help us out? We have very important celebrities helping us out who told us, we can help you out, with our secretaries, with our friends. We like this very much. Like we ourselves did at the beginning of the pandemic when we sent out facemasks to some areas in the world because we were so scared that we bought them in advance. And I don't know if I can say this, but we sent 500 to your district because you couldn't find them. So the same that has happened with facemasks, we wanted the same with these garments. You see there are some people who, sometimes, they maybe, they are in difficulty because they can't find a proper outfit to go to a job interview. So why can't we give you 18 garments and you deliver them to the specific household. It is a very delicate kind of activity. So this is the way it should be seen. Then e-commerce. We believe in this very much. And we will probably achieve 4%, 5% of our revenues this year. As I was saying before, we have large facilities here. But we attach a lot of importance to the e-commerce in terms of communication. But today, we were talking with our Board member, who is the CEO of Lamborghini, and he was saying something interesting. He said, people need to touch, to physically feel the garment. So we should never underestimate the human contact in the value of brick-and-mortar stores. Last week, we read something saying that in the last 20 days, young people decided to shop in the physical stores because they want to be advised. So we believe in the e-commerce. As of today, it represents 10% for us. If it reaches 13%, 15%, it's fine by us. But it's the physical store, the physical sales assistant, the brand ambassador inside the store, because they are the ones helping you out. When my friend Jeff Bezos said, Brunello, choose me an outfit, an outfit for me to go to London to Wimbledon. You know that in Wimbledon, you have to wear specific outfits. And I said, Jeff, why don't you wear this [ pink track with denims ] with a tie. And he felt honored. And I felt the same. And this is not only true for Jeff Bezos but it's true for everybody. If you say, if you go to a store, you say, what's new? And if you go in January and say, what's new? And the sales assistant will not show you an old product that has already been seen around for a year, maybe sold with a 50% discount. But you see -- I've always been fascinated by what the dictionary says under the word, fashion, which is a way of dressing that is directly linked to the social and economic situation of the time. This is the law in fashion. So we decided to do this because stores must be beautiful. And hopefully, collections are beautiful too, not because we display goods that have already been seen, especially, not this year because we were all locked inside, and we were looking at garments online. Thank you.

[Operator Instructions] Next question from Paola Carboni, Equita.

I really appreciate your project.

Well, you can be a partner too.