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

Good evening, Chorus Call operator speaking. Welcome to the presentation of the fashion house, Casa di Moda Brunello Cucinelli, the idea of humanistic capitalism and human sustainability. [Operator Instructions] Following the presentation, there will be an opportunity to ask questions. Speakers will be Brunello Cucinelli, Executive Chairman and Creative Director; Luca Lisandroni, CEO; Riccardo Stefanelli, CEO; Moreno Ciarapica, CFO; and Pietro Arnaboldi, Head of Investor Relations and Corporate Planning. [Operator Instructions] And now I'd like to give the floor to Brunello Cucinelli. The floor is yours.

Thank you. Good evening, and really, thank you from the bottom of my heart for joining in before -- just before the holidays, but it is something I'm really pleased of doing. So I'd like to thank investors, analysts and everybody joining and attending. So at the end of the day, we have now reached the end of this year. Still, I have to say with some concern about what I have always called this pandemic. But you see, I have always described it as a serious worldwide plague since I love history. And you see, they were called pestilence rather than pandemic. And pestilence is you see -- sometimes it can be more frightening than pandemic. We think that this could be over in about 3 and 4 months, at least I hope. And by the way, our vaccination hub was set up a year ago -- a year ago and will stay there until the end of the pandemic. And now the data we have in mind in the beginning of spring. So -- at the same time, to me and for our company, 2021 was a year to be counted among the beautiful years of our history. I have to say that I really strongly wished this call -- to hold this call because, usually, we hold the traditional year-end Board meeting. But I wanted to -- this call to be dedicated to something special. So call with the financial community dedicated to summarizing the major elements that have affected our company and the family foundation during this period in a fascinating way, I have to say. And the aim of this call is also to say thank you to many, many people because in these 2 years of pandemic, I have to say that we have had many moments where we have reached out for one another and helped each other mutually. So what about this call, how do we want to structure it? So a short update of the year-end earnings and figures by almost everything. As you know, as a company, we would always like to achieve what we have envisaged and, therefore, would like to implement your expectations. Then I'd like to talk about the inauguration that took place the other day of the so-called Casa Cucinelli in 5 worldwide capital cities. I'd like to once again say something about the winning of the Design of the Year 2021 GQ price because I think it has majorly affected positive image in the world and sometimes also slightly the sales of the last 3, 4 months. And since then, we have decided that our company will be called Casa di Moda Fashion House, which sounds a bit more fascinating and it really represents us more. We have always been fascinated by the -- like Hermes and Chanel. So that's why I want to call it Casa [indiscernible] -- and then I'd like to maybe dwell on the great project of the Universal Library of Solomeo. Some of you already familiar with it supports of the surroundings and the culture. And as you know, this project is totally, entirely funded by the family foundation and not by the fashion house. And this is a project that we call a project for the coming 1,000 years. And then a great topic we'd like to talk about is humanistic capitalism and human sustainability. And I'd like to also say something about the G20 I attended in Rome last October. So this is unquestionably now the most discussed social and human topic in any form in the world sustainability. And thus, we have set the targets -- the emission targets for the coming decades. So I'm very confident that humanity will have become aware of this issue, especially young people, but even more so the very young for the future to come. So my comment, my quote is a beautiful 2021, which we define as the year of rebalancing with a growth in turnover of almost 30% that has enabled us to fully recover the 10% loss suffered in 2020 so as to resume a sound, balanced and serene path towards the objectives of the 2019-2028 plan and its targets. After my excited participation as a speaker at the G20 in Rome last October, where a highly respected Chairman Draghi had asked me to give my testimony on our concept of life and work and on everything we call humanistic capitalism and human sustainability. So following my attendance of the G20, I wanted to share these great human reflections with the entire Board of Directors as well as with the financial community through a dedicated pre-Christmas call and also to definitely set the targets for the reduction of greenhouse gas emissions by 2028, the year of the -- that marks the end of the 10-year plan, as I said before. So now some slight earnings update as we approach the end of the year. Turnover up, close to 30% on 2020 and close to 16% on 2019, following a year when we had lost 10%. This means that we have recovered the loss fully. EBITDA around 14%, and Inventory is back to normal with an incidence on turnover of around 29%. I also wanted to point out that we do not have any issues as far as raw material supply is concerned, as we said back in October. Net financial position, very, very interesting. It will be around EUR 35 million. We wouldn't have expected this achievement 6 or 7 months ago. And on this subject, my heartfelt thanks to all the banks because, you see, they have made available to us quickly in March 2020. You see now everything is faring a bit better. But in actually less than 2 weeks, they gave us a huge amount of credit facilities that allowed us to work with confidence. Fortunately, only part of it was used, but I want to say thank you very much to our banks. And also I have -- because they were very brave financing companies. As you know, I have always believed in the validity of banks. Of course, we have started off without even a dollar in our pockets. So definitely, our banks helped us grow. As to dividends, we will return to a normal dividend of around 50% of profit. So to conclude about the full year, it is a year of rebalancing except for a few points loss on EBITDA. But as you know, we have not changed anything in the corporate structure and we have not laid off anybody. We haven't asked for any discounts. You know that. Therefore, we imagine with confidence and serenity, we -- you see working with confidence and serenity is always a good way of working. So we envisage a healthy and balanced growth around 10% in both 2022 and 2023 with a rebalancing of EBITDA. All the above will allow us to end the first half of the 10-year plan, 2019-2028, as projected in 2023, perhaps slightly above. So the tenth 5-year plan of our company, 2019, '20, '23 will end up slightly above expectations, at least we hope. And then there will be the 11th 5-year plan from '24 to '28, but we will also have the 2019-2028 10-year plan. So we are back to say now that in the medium to long term, we are looking for beautiful, healthy, balanced and humanly sustainable growth. This is something we really want to convey. Now about the Casa Cucinelli. What is this? So in 5 cities, Solomeo, Milan, London, Paris and New York, we have fitted out these spaces as Casa Cucinelli. in Solomeo. We welcome our visitors in New York. We have it on the Fifth Avenue, about 700 square meters. A nice one in Milan. Then in Paris, it used to be the apartment of Josephine Bonaparte. So what is Casa Cucinelli. It is a place where we basically welcome people for dinner, discussing small conferences. So it is a meeting venue to convey our culture, corporate culture. It is a place where you can breathe in the taste of the brand, the lifestyle. There's a small library. There's a classic Italian kitchen, and you can taste the Italian cuisine. And you see, I really -- I have always believed that the Italian cuisine is made up of -- for each dish, it's only 3 ingredients, so maybe pasta, tomato and basil. So everything very typical Italian. And then this is a meeting venue for analysts, investors, journalists and friends. It's really very welcoming. These houses, these homes, Casa Cucinelli in the future, we'll try and set up one in Shanghai and Tokyo. But we think it is very, very nice for the imports and appointments and also for the smaller ones. So maybe 1 minute on the London prize. As we said back in last time, in September, we were awarded the GQ Designer of the Year 2021 prize. It was a great recognition to the identity and our taste. Why am I saying this? Because you see, collections may have the ups and downs. But as it was the case for Ralph Lauren and Armani, the great fashion brands, the taste remains. And today, we seem to be identified as the brand of a beautiful dressing worldwide. So we have some sort of benchmark. Of course, in the last 4 months, the image that we enjoy around the world has been enhanced. And there is no doubt that it has also influenced sales in the last part of the year. In terms of number of SKUs, well, men and women's is 50-50. But of course, women's, the price is slightly higher. So in economic terms, is 58 and 41. But in terms of [indiscernible] SKUs is the same for men's and women's. Then 3 minutes about the Universal Library, which we presented at the end of October in Milan. Everything funded by the foundation, so this did not end up in the cost items of the listed company. This project is aimed at highlighting even more the value of Solomeo. So we have the theater, the winery, the monument, the library. And Solomeo is now being increasingly identified as the location of Cashmere. And hopefully, this can still be there in a few centuries, a place where we can live in harmony and moderation because I think that the great theme of moderation is very contemporary. With some of you, we mentioned the fact that we would like this to be some sort of Maranello Ferrari. I really hold the Ferrari theme very high -- in a very high regard. But some people say Maranello is identified with Ferrari. And we'd like Solomeo to be identified with Cashmere and also with a different way of working. We like the fact that people come to visit Solomeo. But sometimes you see it -- too many people. So we are forced to take pictures with all of them. But nevertheless, we really like welcoming visitors in Solomeo. And this library, you see, I've always been fascinated by books. Hadrian the Emperor at one point said books should be the way in life. And when I -- as a grown-up, life made me understand the meaning of books. And for the lovers of Italian culture, Petrarch once said, I question my books and they answer to me. They think to me. Sometimes they make they smile and they comfort me. Some other times, they show me my human self in a different way. And Ptolemy the First came up with this great idea. He was a good friend of Alexander the Great. His idea was to protect all books in Alexandria, starting from Aristotle volumes. So we were very fond of this idea, we still are and we think that it can attach even greater value to Solomeo. It is a great investment for the foundation. And I hope that Ricardo, Luca and your children and grandchildren can really pursue this project because there is also a cultural sustainability to be taken into account. So the library project has started. Many people are writing to us about this. And I call them the defenders of the library. Many people are book lovers. And now about the G20 in Rome, how did it go? The Draghi's Secretary called me and said, would you like to come and talk about the corporate culture during the G20? And I jokingly said, of course, I would even swim to that venue. And then a month elapsed. And I was very tense because on the one hand, Prince Charles of England was invited to contribute to talk about the climate -- global warming. And by the way, we are also part of one of his projects. And Ricardo follows this project. And I was to contribute my thoughts on humanistic capitalism and human sustainability. So I did not sleep that much during that month because, of course, I usually speak of the cut. And so I went to Rome 2 days in advance. And I didn't eat at all because I thought, just think if you have tummy ache, when you have to address the G20. It doesn't happen every day. So in the morning of the event, we were already there half-past 8 instead of 10. And the security guys said, Brunello, where are you going? I said, you see, what would have happened if my car had broken down? And then -- and one more thing I wanted to say, all these great men came. We were having breakfast together. And there was Boris Johnson, Angela Merkel. So there was some pressure there. So we sat there and Prince Charles was reading his speech. I myself had not written anything. So I said to myself, Saint Augustine, please lend me a hand because once Saint Augustine said, do not worry. The important thing is that what you say comes from your soul. The words will follow. And this is what happened. Of course, when you speak -- when you improvise, the message is always stronger. So it was a very special experience. And in the end, Boris Johnson and President Draghi -- they said it was a great speech. And during my address, I paid my compliments to Mario Draghi because thanks to him, Italy is once again credible. So we had meetings with investors in London, Milan and New York. And now we are a credible country, and it is something great. So I really wanted to mention this again because it was very moving for me. I would have never imagined it. When I said to my 100 years old father what I was going to do, he was very moved, too. Then at the same time, 2 years ago -- sorry, 2 days ago [indiscernible] Young called us, well actually defined [indiscernible] targets for emission. And the reduction of greenhouse gas emissions will be by 60% by 2028. And for Scope 1 and Scope 2 emissions, it will be 70% in absolute terms by 2028 still. So we would like to say that, by nature, our business is -- has a very high rate of craftsmanship. 52% of products are really handmade, with manual work. So by nature, emissions are not very high in our case. But it's not that we want to blame it on others. We just want to say that the kind of products we deal with is different than how we relate to the surroundings of the territory. And now I wanted to devote 5 minutes to what we call sustainability and humanistic capitalism. So as we were talking at the Board meeting today, I think that everything starts with moderation. We need to adopt moderation in everything we do. I don't know how that translates into English. But in Italian, moderation and moderation is a very noble term. In Augustus, in [ 5, 6 ] AD said something fascinating. You should live in an honest manner. You should not harm anyone and everyone should have their own, 2,000 years ago. So in about a month's time, we will put together a booklet. But we decided to break down sustainability into 4 kind of aspects, so creation, economic, moral and cultural. Then the one related -- the sustainability -- creation, we have emissions and climate. That's the land. And as far as the land is concerned, you should know that our industrial buildings were existing ones. Plans already exist in last century. We tore down some of them as a foundation, and part of them were readapted to modern times. So we have tried to reclaim the land and not to exploit it. So also the future project, we'll speak about this in -- around March. But the future expansion, extension of the facilities should happen very close to our village by reclaiming an important piece of land. And actually, it used to be a factory in the past, but we'll tell you more next March. And then, of course -- so creation, we have emissions, land and animals. And then there is an economic kind of sustainability. We talked about this, this morning. Working conditions, you see your laborers. Do they -- can they see the light or -- the sunlight or not? What about their wages? Are they lower than the average? So if -- there's a great difference between earning EUR 1,700 or EUR 1,300 a month. Your life changes. So the sustainability on raw materials, too. We try and have a special relationship with raw material suppliers and then our relationship with the textile workers, the true manufacturers of our products. So creation -- sustainability from a creation point of view and sustainability from economic point of view and then sustainability from an ethical point of view. This is a part -- it's in the minutes of our Board meetings. And so we have dignity at work here. When you go to work, do you feel treated like a human being or slightly less than a human being? Are you a beautiful soul or not? Then fair working hours. This is also an ethical issue, a fair amount of time spent online and then another topic. You are familiar with, fair profit and the balance between profit and giving back. This is a conviction, a belief that I have. I believe that in the future, especially the young and the very young will be very mindful. And we will try and shop with -- they will shop a product. They will buy a product -- or a company that makes a fair profit. I think that we will fully know what a fair profit is. Then another important topic is respect for the law. We try to comply with the law. We strive to pay fair taxes in our country. We were talking about this today at the Board meeting. In the end, our gross tax rate is 29%, 30%. But net, it has been 22%, 23%. And I think that paying a fair amount of taxes in the country of your country of residence, it is also part of an ethical sustainability. And then there's a last type of sustainability, which is the cultural sustainability. So library, having a library, it means having a cultural sustainability, the theater, the arts, the value of training and teaching. So there is some kind of cultural sustainability towards the surroundings in the community. So to conclude, and then you can ask your questions. We wanted to organize a call devoted to sustainability and humanistic capitalism as a whole. It is an end of the year call, an extraordinary one after such an important 1.5 years. But we really wanted to give you a proper value. And to conclude, I'd like to say that since -- at least to me, these are the days important human reflections and musings. You see when we were in the countryside, we would finish sowing corn in the end of November. And December was a so-called still quiet month. We would organize all our olive oil. And so we would go and -- for the accounts to the landowner. And then my father and my uncle will go to the landowner in order to calculate what we were due and -- sorry, we were owed. And they would come back home to the family. And they would not talk numbers. They would just say, let us thank God for how it has gone. Hopefully, it will -- we will perform better next year. So I was always fascinating by this healthy balance during the Christmas holidays, that we would welcome back our relatives working abroad. And it was a special time for the family. So I would like these days to be intense and poignant days for our soul because I think we need a healthy balance with ourselves. So I'd like to thank you wholeheartedly. Let's open the discussion, but we really wanted to organize this call at the end of the year. But none of us would have envisaged that 1.5 years after the outbreak of the pandemic, we would be in these conditions. But I'm not just talking about Cucinelli. Whoever you speak to, everybody is planning, is planning ahead. And if we think about our beautiful Italy, where you see we are a true manufacturing people. A few some time ago, I spoke to my friends at Chanel. And they were saying, "Do you know that 70% of our production is in Italy"? Just think of what kind of value Italy has for us, and we are honored for that. Thank you. Let us open up for discussion before wishing us all the best.

[Operator Instructions] First question, Andrea Randone, Intermonte.

Congratulations for the important things that you communicated. My question is, could you make a geography-focused comment at the end of this year that beat expectations? Other countries are talking about the bubbling United States. You have a very high-end customers. So probably they are not really affected by the short term. It is more of a question of taste. And I'd like to know how you also view this trend of alignment of world faced at young people, in particular, whether it is something you are seeing and whether this can all go well for 2022.

So as far as the geographies are concerned, we had a call in October. And what I'm saying is you just need to get those -- take those numbers and increase them slightly because the stores are all open. There were no delays. You can really take the end of October figures and improve them slightly. For taste, the question is very interesting because at least we -- what we see is an interest from 20 to 40 years old, but it is a homogeneous kind of taste. As you know, our collection is the same everyone -- everywhere in the world. Just a question of sizes, but the case is the same. And especially in the case of young people, the idea is to buy items that do not go to waste, items that can be reused. Well, of course, as far as ladies are concerned, fashion changes quickly. But for menswear, you can mix, you see, last season's blazer with a modern denim. So the idea is to shop for fine products that you don't want -- and durable products. This is something that I'm really pleased with. Nobody ever says that our prices are preposterous and you know that we are pretty expensive. But we hope that there is a high level of craftsmanship. It is up to you to express your view on the taste, but we want to keep being a lifestyle and clothing company. But we have many young people who have approached the brand. Young actors in China and young -- by young, I mean between 35 and 45. And the idea is that of being dressed well. Thank you, Andrea. And you asked about the future. As for the future, we are very confident, but always with moderation and self-restraint.

Just a slight follow-up, a comment on online and stores. The online customers, are they the same as the customers that come to the stores?

Well, as far as our company is concerned, our direct online accounts for just over 6%. Together with the wholesale, we estimated around 12, 13, 14. But it is very important to showcase the product. Almost 50% of customers go to the physical store with the information collected online, but they want the physical tailors, obviously. You see we do clothing, Andrea. So it is important that you try it on, that you have it taken in if necessary. But I think that this is the value of the online, some suits to showcase the product. But we have rediscovered the great value of the physical stores. You want to go to a physical, brick-and-mortar store because you want to talk to the shop manager or because they know you. And this is very strongly felt, especially in the local customers.

Flavio Cereda from Jefferies.

So 2 things. So we have humanistic capitalism, sustainability. Then your work with the community, always a strong asset for you. With this press release, you are giving us more detail with some metrics. Do we have to -- can we expect some updates in the future with the progress and the objectives, the targets and goals? Maybe you were really doing this in the past, but now you are really speaking numbers. And also Casa Cucinelli, the brand is veering more and more towards its lifestyle version, and it is an important development. So you mentioned 2 Casa Cucinelli and perhaps 2 additional ones. What role can this play, the fact that you can offer this specific kind of welcoming to some customers?

Let's start from the Casa with my answers. We spend half of the money on events. There are some very VIP people who want to come to you. They want to have a meal in the Italian way. They spend 2, 3 hours. They never want to leave. And then they try on. It's very confidential. So for us, it will be increasingly important. That's where you can feel the taste, but not just in clothing, but also a place where you can find -- have a special meal. And also you can breathe some sort of Solomeo. The olive oil is from Solomeo. The wine is from Solomeo. So it is really something important. And about the first question, very interesting. [indiscernible] Young set this emission targets. And we told them, please keep us updated as to the quantity accordingly. But you see, Flavio, we have been collecting rainwater forever, like we did when we were farmers. We always grow our crops the very same way. It is a question of culture. So our company, since we are artisans, we do not have a very high level of emissions, but it is a daily kind of work. But I really wanted to organize a specific call with you in order to raise our own awareness because it is increasingly strong. They want to know what your profit is like, how you behave. We wanted to always deal with this topic also with some -- in a graceful manner. We need grace in our life. So I'd like this to be talked about like how we treat people. And you see the way you treat your workers is really important and also the number of working hours. Do you think we can work this way for the next 20 years, working 15 hours a day? It's not possible. You need your rest. I say it in the company, we work 8 hours. And perhaps in 2, 3 years, we will reduce that, but always focused because we need to go back home and live a daily life with our dear ones. These are important musings. And since the average age of people is low, you see, now when they come for a job interview, the first question is how many hours am I supposed to work and not how much money I will make. So we want to work in an intense manner but also not exaggerate because these will be the needs, future needs of the human beings. So at the end of the day, I would like to say to talk about healthy moderation. So I'd like to wish you all the best wishes for Christmas and the New Year. You see thank you very much. I always -- I want to thank you for all that you have written in the past 10 years. I'd like to thank investors who believe in us. I'd like to thank journalists and banks. I say it once again, Flavio, in 15 days, the banks gave us credit facilities for EUR 200 million. We thought we would need EUR 100 million. Just think of how they helped us work with confidence. So we all feel stronger. And then as far as the pandemic goes, I am pretty confident because I think that in 2 or 3 months' time, they always talked about 2 years, so we should be close to the end.

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

It's a pleasure to speak to you just before Christmas.

Well, yes, when I said to Pietro and Luca, why don't we organize a call? But what will they think? Did something happen? No, nothing happened. We just organize the call to say hello, to thank you, all of you and also to feel better to give us our best wishes. Paola, your question.

So I wanted to start from something that you said at the very beginning, when you talk about fashion house or Maison. It's the first time that we hear you use this definition. So how am I to interpret this view? I think that there is a growing weight of lifestyle. And on Instagram, on the website, I see that the non-clothing part is drawing more and more attention. So how can the product mix evolve, do you think? And the non-ready-to-wear categories, what do they account for?

So Paola, I want to say the following. I have always been fascinated by the Maison's Chanel. So I said to this, why should we have to call it industry? We call it -- we do the true luxury, and we should call it Maison. It's Casa in Italian. But you see, we are ready-to-wear. We want to still be a ready-to-wear company. But probably 80%, we are -- in a company, 80% fashion and 20% lifestyle. It is all part of a taste. And that's why maybe we were awarded this special price on identity. So I always think that the company will still be here in 100 years' time, maybe EUR 2 billion, EUR 3 billion, EUR 4 billion revenues growing slowly with an extremely high rate of craftsmanship, top-notch quality. Then, of course, the taste is also important. The other day, we reviewed the 10-year plans of all the workshops working for us, and it's wonderful. Of course, you must have the courage to pay them in a considerate manner. But what I say here is why should we really chase a 0.8 EBITDA more when you deprive someone of this. The profits of these workshops are not so high. If really -- so since it is a civil and morally human responsibility of major companies, like the one that we -- the fact that we did not ask for discount. We went to ask for credit facility to the bank to protect the value chain. And I think that our value chain is somehow eternal or very long lasting in the decades to come. Of course, we wanted to create a brand and a taste. In everything that we do, we try to depict taste. You go to Monte Carlo, and there's a table there where you can have your dining -- dinner party. These are also spaces that are somehow timeless. It is Maison, and we would like to call it Casa in Italian. It is a very positive experience we are enjoying with the Casa Cucinelli because we have loads of people wanting to visit in New York, in London, in Paris. In Paris, it's the former apartment of Pauline Bonaparte. There was a dinner with 200 customers who danced until 2, and small things that make the difference. And I have always believed -- when I designed the first tuxedo for Schultz's Starbucks, he asked me, how do I look? I said, great. And then 10 minutes later, I have 10 tuxedo orders from his friends. So it's -- I think that the word of mouth is important at this level. That's why I say it does make the difference, really. I don't know if I've answered your question.

So the 70%, 80% fashion and the 20% lifestyle, is that your current breakdown?

Well, yes, you see we did this with the eyewear. And eyewear are doing very well, but taste is what matters. My daughter, they went to -- and her husband. They went to Los Angeles. They designed some styles together, high-quality. Like CEO Delvecchio said -- now when I said to him, what do you think of these glasses today? He said, I don't know whether they are beautiful, but they are made the best way possible. So we keep working this way. But if we keep working with a sustainable plan, also growth-wise, healthy growth, healthy profit, I firmly believe in this because this idea of profit might be a fixation of mine. But you see when I was young, profits had -- the company had different EBITDA. And some of you -- one of you, and I don't mention any names, once said, "I don't buy anything from those who make too much of a profit," although he was an analyst. And we have to be balanced, especially if you deal in luxury. I personally, I never buy products with -- profit when I was young. So retail was 54.3. And now the ratio is 1 13, 13x the industrial cost. In that case, you wonder. In our case, I think that we are around 8.2 the industrial cost -- times the industrial cost. It's still part of human sustainability. So I'm not objecting to anything. But I'd like this company to keep growing with craftsmanship, fair profit and the balance between profit and giving back. The other day, the Chinese ambassador in Italy went to spent 2 hours with Luca in Milan. And they talked about Confucius. They talked about taste, craftsmanship, culture. And all this makes the difference. So I have been studying Chinese culture in depth with a friend of mine for 1.5 years. And now we will put together a booklet that I'd like to hand, to give out, to hand out. You see we are the West, and we come from the Greek culture. But if we combine it with the Eastern culture, we can achieve great results.

Just one last thing. Now you are more confident about the fourth quarter, but it's not that we were pessimistic before. It's not that we are optimists now. It was slightly better than we thought. I think there are no clear geography drivers, right?

No, everybody is -- every geography is faring well. In America, China, Europe, the city customers are happy. They go to their local stores. I find it very interesting. And do you remember when you were saying that well, how can we do without tourists. And I said, no, we won't be lacking 30% of the business. I will shop in -- London -- sorry, in Rome instead of New York.

And as far as channels are concerned?

No. No, everything is fine. All the figures you have for October 24, you just improve them slightly. And that's the end of the year for you. Then of course, the day before [ PT ] on January 10, we will give you the accurate figures and broken down by geographies. But all geographies performed really well in this quarter, right, Luca and Riccardo? So talking about sustainability in this call, we wanted to provide you with an update because we would like to always give you results without any positive or negative surprises.

So there are no more questions, Mr. Cucinelli.

So we'd like to thank you very much. So it was a good choice to exchange wishes before Christmas and to restate the fact that we expect a great future with the end of the pandemic, which will happen soon. Thank you very much. Rest and live like we did when we were farmers. Let us seize this opportunity to take stock of your life. Thank you very much, and best wishes. Goodbye.