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

Good evening. This is a chorus call. Welcome to the presentation of the first half results of 2022 of the Brunello Cucinelli Group. [Operator Instructions] The speakers will be Brunello Cucinelli, Executive President and Creative Director; Riccardo Stefanelli, CEO; Moreno, CFO; Ciarapica and Pietro Arnaboldi, Head of Investor Relations and Corporate Planning. [Operator Instructions] And now let me hand over to Brunello Cucinelli, please.

Good evening, and welcome back. First of all, I'd like to point out that we are not a group, so I would like to correct, look at Riccardo. What we are saying, we are -- actually, we are an S.p.A. Jokes apart, so welcome back. I hope you had a chance of having a break and resting. As usual, analysts -- financial analysts and journalists are joining our calls. The call for us are always very important. And for me, they are even more important. They are serious events but also beautiful events. Like the last call, we had the last one in July. Then we're going to have another one in mid-October with the 9 months results. And finally, we will have the final call in early December after the Board meeting because we have a Board meeting in December that we call strategic. But this year, again, we would like to organize a call after the Board meeting. And then next year, if everything goes back to normal, we are going to have 4 calls instead of 6, hopefully. So how is the call going to take place? As usual, Moreno will read out the numbers. And then we will focus on the big picture -- I will focus on the big picture on general data. But there is also an important topic we would like to deal with. We are going to talk about these couple of months and how things are going, what we can envisage for 2023. So Spring/Summer collections, men's wear is over. The women's wear campaign is almost over. And so we will give you a picture for 2023. Then we would like to talk about the great value of the factory, the great value of training and craftsmanship, values that are important for us. And this is even more so in this very moment. And so a couple of information on training. And the last couple of minutes will be devoted to the great value of Italy from the viewpoint of the social, economic and political setting because I often hear some Italians talking about Italy, and I disagree with them. I have a totally different idea about Italy. So let me focus on numbers. Turnover is well known to you. Net revenues, EUR 415 million, up 32%; at current exchange rates, 28 -- sorry, at constant exchange rate, 28%. Very important growth in all geographical areas: Americas, plus 52%; Asia, 27%, Europe 20%; Italy, almost 20%, in both sales channels with retail up 47% and wholesale, our beloved wholesale, up 16%. EBITDA is equal to EUR 120 million, up 48% versus EUR 80 million as of last year; EBIT, EUR 57 million, up 128% versus EUR 25 million last year; net profit, equal to EUR 50 million, up 131% versus EUR 21 million last year. But we have to point out that the first half of last year was highly impacted. Important investments in line with our 3-year planning equal to EUR 36 million as of June 30, in favor of the contemporary nature hopefully of our Casa di Moda and of our beautiful factory, well, drawing inspiration from my dear friend, Leonardo Del Vecchio, who before dying said to his son how beautiful our factory is. And this has remained in my heart. And that's why we want to call our factory a beautiful factory. Added to this value is the acquisition of EUR 15 million invested in the acquisition of 43% stake of the -- in the prestigious Lanificio Cariagg Cashmere, Our long-term supplier. On Thursday night, we have an annual meeting with their staff. They are about 170, and these are people with very important hands. The company's solid structure supports the multi-year investment plan with characteristic net financial debt amounting to EUR 63 million. So this is what I've said -- well, I've been reflected upon this very much, but you will find a central part of [ Italy ] really very fond of and that we will discuss in December, too. The first half closed with excellent results in terms of both growth and profits. On the back of this, we envisage a record year 2022 with revenue growth of around 15%. During the pandemic, companies in our country, thanks to National Social Safety Nets and wise and humanistic entrepreneurial choices, have generally managed not to lay off their staff and, thus, preserve the production and marketing and distribution of their products. Today, it seems to us that for certain products, demand undoubtedly exceeds supply, which means that we Italians, great quality manufacturers, have become better at producing and manufacturing topnotch quality goods and consequently exporting them. And there is no doubt that a strong dollar and a weak euro, but there are other strong currency, but -- so there's no doubt that a strong dollar brings remarkable advantages to exports, and our sector will benefit there from. Very important is the order intake for Spring Summer Men's Women's 2023. That was really very good because men's is over. Women's is about to be concluded. So great order intake both in terms of quantity and of image. And all this makes us look forward to a year 2023 with a full 10% growth in sales. Now Moreno, you will go through the details of the numbers, and then we will go back to our nice discussion.

Thank you, Brunello. Good evening to everyone, and really welcome back. I will briefly comment on the main financial dynamics related to the first half of the year, and I will then be available for questions during the Q&A session. I will slow down a little bit -- please slow down a little bit for translation. So the first half of 2022 report excellent results, confirmed our plan. So let me go to the Slide #11 of the presentation that you have. So the very important growth in results with revenue growth of 32.4% has perfectly absorbed the transient effect of the pandemic and the important cost lines. And this is our decision to preserve the structure, keeping the investment decisions and the activities planned unchanged. The First Margin has a positive and significant change, moving from 66.8% of last year to 71.7%, thanks to the positive contribution of the sales mix and the foreign exchange dynamics. As for the sales mix, the positive impact is related to the channel mix, with the weight of retail moving from 52.7% to 58.7%. with 117 DOS as of 30th of June 2022 versus 112 in 2021. The mix of geographical areas in the presence of growth in America, plus 52%; Asia, 27.2%, which is higher than the growth in Europe and in Italy, equal to about 20%. As a matter of fact, the markup differentials of the geographical areas favor the first margin with a neutral impact on the operational margin because they are -- well, these marks up, but basically cover the additional marketing costs, among which transportation and customs duties, for example. The third dynamic is the product mix. The positive impact on the first margin is also favored by the increasing focus of our customers on special garments. And we are also awarded by the search for products with higher value and content. There is then the dynamic related to foreign exchange rates. The positive dynamics, surplus 4% at current exchange rate, as previously communicated, favor a positive impact on the first margin. And as you know, our industrial costs are expressed in euro. Consistently with that, the same dynamics of the currency impact negatively on some overheads. The part of costs in foreign exchange produced abroad that are increased due to the dynamics of current exchange rates. And the operational costs are also linked to trade activities, to investments for expansion, the retail channel and the digital channel. Let's now move to Slide #14 with the cost. Staff costs supporting a new commercial initiatives, expansion of the network and consolidation processes of activities increased by -- increased to 74% versus EUR 65 million in 2021. And we have headcount moving from 2,000 as of the 30th of June to 2,250. The relative incidence is equal to 18.9% as of the 30th of June versus 19.7% in the 2021 June 30. Please note that in 2019, it was equal to 18.5%. Net of the IFRS 16 effect on leasing, the cost of rents that has anticipated, follows the dynamics of opening is equal to EUR 61.3 million versus EUR 54.4 million as of June 30, 2021. The incidence of rent -- net of the IFRS 16 effect is equal to 14.8%. It was equal to 17.3% in June 2021, so up or above the 13.4% of the first half of 2019 due to new flagship stores, extension of boutiques and opening of spaces that we have called Casa Cucinelli with important dedicated areas that are not directly connected to sales but rather to enhancing the value of our idea of hospitality. The current incident equal to 15% of rents is representative for the entire year. The investments in communication are still very important from a strategic viewpoint. Among these investments related to boutique events have recovered since the second half of 2021. Investments in communication are equal to EUR 20.4 million versus EUR 14.4 million in June 2021 with an incidence of 4.9% as of 30th of June 2022 versus 4.4% last year. Please note that structurally, communication activities for events are stronger in the second half than in the first half of the year. Based on these dynamics, EBITDA net of the IFRS 16 effect, as you can read on Slide #11, is equal to EUR 75.3 million versus EUR 39.9 million in June 2021 with margin equal to 18.1%. And this is improving versus 12.7% last year, and it is up from 17.3% in 2019 before the pandemic. As for the positive value of the net financial income in the first half of 2022, you can see the detail in the Slide 24 that we have prepared in the presentation. Because this is quite abnormal versus the normality, the financial management in its complexity has benefited in this 6 months from various aspects. For example, the accounting of the transaction related to the purchase of the 43% stake in Cariaggi and the positive difference equal to EUR 4.7 million between the purchase price of the stake and the net equity value based on the financial statements approved in 2022. Moreover, another important effect is related to the foreign exchange dynamics. Due to the weakness of the euro as of the 30th of June 2022, that leads to a strong and extraordinary positive impact in the first 6 months of 2022 due to unrealized gains on currency exchange rates due to the effect of the IFRS 16 principle. And this very strong positive impact will probably be diluted in the second part of the year both due to the trend in foreign exchange rate in the second half of 2021 and based on the estimates of authoritative financial institutions with their outlooks on December 2022. So EUR 56.5 million is the net profit as of the end of the first half. I'd like to point out that the tax rate in the first half at 27.4%, and this benefits from the reduced tax rate on financial gains EUR 4.7 million related to the valuation of the stake in Cariaggi, as aforementioned. The tax rate normalized would be equal to 29.6%, consistent with a tax base of 29% that we can envisage for the end of the year. And this is typical for an Italian company that generates most of its profits in Italy. Let's now move to the balance sheet and to some comments on the working capital, on the trade working capital, Slide #16. And the incidence on the rolling sales is equal to 25.3% versus the EUR 208 million in June 2021 with an incidence -- with a relative incidence equal to 31.9%. The trend in inventories and incidence on the rolling sales moves up from 32% in 2021 to 29.9% in June 30, 2022, and benefits for the important sell-outs with an increase in absolute terms from EUR 208 million to EUR 243 million. This is related to business performance and new trade initiatives and the expansion of business in the digital channel. Trade receivables are equal to EUR 75 million. Despite the presence of a significant growth in turnover, retail and wholesale revenues have increased by 16% in the first half of 2022. Trade payables organically increased due to the business trend and due to important purchases carried out in the first half of 2022, raw materials and façon in particular. Slide #17 points out the important investment in the first half of EUR 36.6 million. And this reflects our desire to keep the image of our Casa di Moda, modern and contemporary. To these investments, we have purchasing costs equal to EUR 15 million for the 43% stake in the prestigious Lanificio Cariaggi. The characteristic net debt, financial debt, and this is Slide 18, is equal to EUR 63.8 million in 2022 versus EUR 96.3 million in 2021 that were still impacted by the effect of the pandemic. Please note that the value as of the 30th of June factually represents the peak of exposure for the net financial position. Due to the seasonality of sales, it will then be reduced by December 31. This is the end of my speech, and I will give back the floor to Brunello.

You can clearly imagine that we are very happy with the results achieved. Now I would like to go back to the important figures in 2022. The sales in these 2 months, July and August, are going very well. And the sellout of the Fall/Winter collections 2022 is very positive. And I must say that we had already imagined this trend back in January, February when the collection was released. We always say that if the collection has a special judgment -- receives a special judgment from other brands and the press, we can always be successful, and so this is important. And now let us try to express personal judgment. We discussed this, this morning, during the Board meeting. We have the impression that the demand for certain things that are high quality, unique and exclusive exceeds the supply in this moment. And undoubtedly, during the 2 years of the pandemic, the fact of not laying off -- nobody in the world in the production or in sales allow us now to tackle and cope with this high demand. And this is interesting because this morning in the press, we read with the utmost pleasure that our partners, Luxottica, that we estimate a lot, well, they are asking their workers to work in September too in order to -- on Saturdays in September in order to carry out the deliveries. And this is a very nice piece of news for Italy, for us and for Luxottica. So we consider 2022 as a year of total rebalancing with strong growth in sales after 2 years of pandemic. It's true we have been going through 2 years when in 2020, we lost 10%; and in 2021, we recovered 30%. So the end of 2022 is planned with a sound EBITDA equal to 18%. We will keep our strong investments unchanged, as it has always been the case, equal to 8%. And to tell you the truth, well, in order to have modern stores and showrooms, investments must be high. And very sound is, in our opinion, the management of inventories equal to 29%. Net financial position, we are almost without liabilities, and that's true. We also have a solid and sound company's structure, which is almost equal to half of the turnover in terms of net equity. Another important remark, I think we talked about this during the last call. Well, and this has been true since I'm a younger entrepreneur, we've always generated 3 budgets. So the one is the highest with very few changes in humanity. The second, which is the most trustworthy and the most real, with the normal changes in the world, that always takes place. And this could be the case this year. And then we have a third budget, which is the most critical one with important changes in 2020 during the pandemic. And in 2008, we also developed a fourth and fifth budget, but this is something extraordinary. And this has always been the culture that we apply to our budgets. And then the relationships with the territory, with the surrounding area, this is something we want to point out. And this is our willingness, and we always want to express ourselves with the surrounding area to provide them with our vision. Also in moments of difficulty, often, we are recommended that we do not have to expose ourselves too much. But we live here, and we feel we have a moral duty to express ourselves. It would be difficult to say we're listed on the stock exchange. We cannot speak, although we have police, managers and other people who are asking us how things are going. We may make some forecasts wrong, but we think this is the right way to go because somehow we wanted to feel as a small reference point for our community. And our 60 seconds only to repeat what we mean by luxury because this is something that we see and we also see in the collections, as I will tell you in a minute. We see that people are looking for somehow special products. Our idea of luxury is about products that are very well done, so with high craftsmanship and manual work. It must be a very exclusive product, and exclusivity is the great topic of real luxury. And the third element, this item can be passed over to following generations. You may buy a beautiful car for your grandchildren, a nice bicycle, a cashmere coat or a Vicuña blanket. So this was just to repeat our idea. Riccardo is laughing for Vicuña because you find just 200 kilograms per year of high-quality Vicuña, but -- well, when we calculate the cost of $25,000. But in the past, only kings used to wear the Vicuña coats. I think 2022 -- I hope 2022 is clear to you. The idea is that there is a very strong demand that, in our opinion, exceeds the supply. And this is an important topic. So -- but this is our personal viewpoint. Don't forget this. Spring Summer 2023 collection, men's wear is over. We've almost concluded women's wear. We've recorded a very special result both in terms of numbers and from the viewpoint of our image. People are looking for increasingly special, unique and, of course, expensive items, well, because 52% of our garments are manufactured manually. What we like very much is that collections are perceived as younger looking, chic and contemporary. And when the collections are perceived as young looking, you know that I'm really fond of products. And if a collection is not fresh, you may have some difficulties or problems. Let me share a nice thing. We cannot reveal the source, but today, we were informed that in 2022, we will receive from our beloved China a wonderful prize as a designer in China for arts, culture and fashion. And we are very pleased. And I think that this will be reiterated in March, well, based on the possibilities. But this could lead, could allow the brand to reach what we reached last year in 2021 with the Designer of the Year award. And so we really wanted to share this with you because we're very happy about this piece of news. Now a couple of words on the great value of our factory. And here, let me use the adjective beautiful, as Leonardo Del Vecchio used to say. Normally, as you know, we strongly believe in the factory, in production, in manufacturing. And effective plans have always been of 6, 8 or 10 years. The last plan lasted from 2000 to 2009, we had last plan between 2015 and 2024. So by December, we are going to talk about our factory from 2025 onwards year-after-year. And this is one aspect. And now the great value of schools. I said we would meet some newspapers and magazines. We had a nice conversation. And now thanks to press, we have a lot of applications from students wanting to attend these schools. And this is a project for the next 5, 10, 20 years for our future artisans. So for the next couple of decades, we will be able to train our artisans, and so we will be able to have craftsmen for the next 30 years. We strongly believe in that. We make a lot of effort, the investment is relative, but we could reap very important results. And we have assessed our external production structure beyond the 2020, 2021. Let's see what has happened. In 2019, we had 367 factories. Now we are 400. We had 5,000 people. Now we have about 6,000 people, and this is an important growth. 75% of these people are located in the region of Umbria. And out of these 6,000, 3,800 exclusively work for Cucinelli S.p.A., not for the group but for S.p.A. And as for the rest, the remaining 2,000 work 50% for us and 50% for these beautiful French brands that we really like very much. And this is really very nice because when we started the listing process, and we were very happy, as you know, you used to say but what about the external production structure, is it able to grow with that problem. Now we can confirm that it is growing without any problems. We could even say that the short production and supply chain is a great plus for us. I said this morning in the Board meeting that we can say we have a sound and very short production and supply chain. And the fact we've been very short is, in our opinion, an added value. And then labor work. We discussed this topic extensively this morning. Just 5 minutes, and then the floor is yours. We discussed the problem of labor a lot. There is a mass phenomenon around the world that I don't think is typical for Italy. And this phenomenon is that of the so-called great resignation. People resigned en masse without having another job, and this has been a problem for the past 2 years. This morning, what we have in the Board, a woman who is an expert in the field of human resources, and she is responsible for tens of thousands of people. She talked about and mentioned another phenomenon which I did not know, which is the so-called silent resignation. And these are people who decided to stay in the company but they are producing on a limited base because they were really disappointed by the attitude that the company had during the pandemic. I also think that many people who are working with this discouraged spirit within the framework of this silent resignation, they are discouraged. And I think this also depends at least partly on smart working, on remote working. We've always thought that remote working does not allow to foster collective creativity. You no longer separate the professional life from your private life, and the younger generations cannot benefit from it. And so we can say that we can go back with the utmost pleasure to moral, economic and human dignity. Just 3 minutes about the great value of Italy. I'm sure I will not convince you, but -- well, even if I'm able to convince 5% of you, this would be a great success because I'm really fond of Italy. First of all, let me focus on the social and economic profile. I've always thought that our welfare system is one of the best in the world, and nobody can convince me about the opposite. During the pandemic, and thanks to the social safety nets, we managed not to lay off anybody in general terms, and thus, we have not reduced the manufacturing and marketing abilities of our companies. As I said earlier, the demand for certain items is exceeding the supply, and this means that we have become better in producing topnotch quality products and, as a consequence, export them. In this very moment, I think Italy is very well positioned, and our value chains are shorter. Not only our value chain is shorter, do you agree with me? Throughout the years, we've managed to improve our quality and the level of technology significantly. And this is the reason why we think that Italy has a great chance for the years to come. Our sector can really benefit a lot from a strong dollar. As we said, for us, Cucinelli America accounts for more than 1/3 of our turnover. Well, everyone prays their own god, as we used to say, when playing cards. And now let me focus on the political value of Italy, and I like this aspect a lot because I think of it, we as citizens do represent our political class. So sometimes we say we do not represent it, but I think we do. I'm 68. I've seen 63 governments. The next one will be the 64th. So as you may well understand, I'm not concerned about a new government, whatever it will be. So I think the alternation and governing a country is always very good. Historically said, this avoids tyranny. And let me just clarify one aspect concerning our Republic. We have a president, which is elected -- who is elected every 7 years, but he's very serious. And our Constitution is very serious as well, and many people have got inspiration from our Constitution. The President of the Republic can dissolve the Parliament and can even reject the appointment of a minister. As it happened in the past, if a minister -- or if the President realized that the minister was not well acknowledged by the country, he could decide not to accept this appointment. And so well, the President used to govern with 13% consent. And in Italy, even though Draghi had a 64% consent by the Italian people had to accept that the conditions were no longer in place to govern. So I think that apart from what has been said, I think our country is very credible. Of course, there are temporary keepers that are enlightened and others who are a bit less enlightened, but I'm very fond about our political system. And I think it represents the highest level of democracy that we received from ancient Greece. And this democracy gives me the feeling of the utmost freedom of thinking. So now you have the floor as analysts and journalists. And so please believe in Italy. Do not listen too much to those who pretend to know everything about the future. I was watching TV yesterday night just for a couple of minutes, I don't usually watch TV, and then I switched it off. Well, we are serious people who work in the beautiful manufacturing, contemporary, high-quality manufacturing sector. In our company, we work with dedication, with concentration, with focus, trying to convey a theme to those surrounding us. And then let's try and be surprised and happy with that, with what we have achieved after April 2020, when we imagined the sort of end of the world, and now the situation is not bad at all. So thank you from the bottom of my heart. So don't be disappointed with my words, but I'm real supporter of Italy. And now let's open up for the discussion without any further ado. You can also ask very difficult questions, questions that you may think are the most complicated. The operator of chorus call, let's try -- let's start the Q&A session.

[Operator Instructions] The first question is from Andrea Randone, Intermonte, please.

Brunello, the first question I have is a general question about the guidance that you have left -- kept at 15% and think it's a visible number. There may be margin for increasing it. Does this 15% take into account the impact that foreign exchange rates can have in the second part of the year? A very interesting question. And then a question -- another question. I saw your website. Your website is new, with a lot of video contents. And I see that there is a great care for videos and content, but we see that you can book appointments in a boutique from the website. Considering that this is a theme that is being discussed by other brands, Moncler, for example, talked about this for Korea, can you please elaborate on that a little bit more considering that your brand is even more exclusive and that you have a very strong relationship with your customers? How this solution is being developed? And how does it impact on the relationship within the framework of Casa Cucinelli? And the final question on the collections. Again, men's, women's and children's wear, also children's wear, considering that this collection has also a certain track record, so can you provide us with some further information on that?

Okay. So the 15% guidance, when we develop our budgets, we never consider the exchange rate fluctuations because it becomes too difficult, Andrea. In the second part of last year, we experienced a nice moment because all stores were open, and there was the fascination of America that we can still perceive. And so we've kept this number unchanged regardless of the fluctuations in exchange rates. Well, you may have 1 or 2, but now we have 4, 5 different exchange rates. The second question concerning videos, we've always thought that, well, as you know, we've reached 60% of people buying in the boutique with the picture that they saw in the e-commerce website. And for the last years in Monte Carlo, for example, we also organized dinners in the boutique. In all the boutiques worldwide, we have the so-called bar. If you go to Madison Avenue, New York, you can have a cappuccino. And even if you don't buy anything, that's good enough. And we've even set up 5 Casa Cucinelli where everyone can book an appointment to come and meet us regardless of the purchasing power of the individual customer. And this is very important for us. It's not true that only people with a certain level of income can come. But this is generating important results. We have lunch together. We have a conversation. This is very nice. And also multi-brands are coming to see us, and growth plans can be developed with them. And the final question about collection, let's leave children's wear apart, which is a very small collection, but the collection is 50-50 between women's wear and men's wear in terms of number of items. Value-wise, 56% versus 44%. Clearly, women's wear has a slightly higher value in the garment. So I think I've answered all your questions. I don't know if you have any further questions, but for some summer collections, we really had great, great results. As usual, we can envisage and we can think next year be favorable because in the first month of the year, you will have very positively perceived collections. But what is really important is that collection are performing really well now in the stores. And if multi-brands come with interesting budget and for Fall/Winter 2023, then we are successful in that the background of our planning. Finally, let me go back to what we said earlier in the beginning. This is what is also perceived by multi-brands. Many brands are not saying we are missing goods, which has not been delivered yet. Multi-brands are the real barometer about how deliveries are performed by companies if deliveries are on time, if they are late. So they are the barometer of many factors. And well, hence, we see what Luxottica said and what we've read about Luxottica this morning. There's a strong desire for products. I hope I have answered all your questions, Andrea.

[Interpreted] next question from the conference in English, Antoine Belge, BNP Paribas Exane, please.

[Interpreted] It's Antoine Belge. It's BNPP Exane. Three questions, if I may. First of all, you commented about July and August being very strong. Maybe to quantify, I think in your guidance, you'd like to reference versus 2019. So I don't know, is the growth close to 40% or 50% versus 2019, like it was in the first half or any other measure or maybe give a bit of flavor by market? My second question relates to the first margin, which was very strong, EUR 71.7 million in the first half. So when you talk about [ EUR 18 million ] for the EBITDA, I mean what sort of cost margin are you expecting for the year, also similar to H1 or different? And finally, what is currently the price gap between U.S. and Europe? It must have increased quite a lot, so how do you intend to react to that? I mean do you expect to maybe lower prices in U.S. or increase prices in Europe. so what's your pricing strategy in -- if the euro dollar stays at parity?

[Interpreted] Well, I will answer one question, and then I will hand over to Moreno. Well, as far as the price lists are concerned, Antoine, we always change our price list twice a year when the collection is released. We fix the current -- the exchange rates, so we will never have profits or losses on exchange rates. And this has always been the case. Our prices are changed twice a year, Spring/Summer and Fall/Winter. Our reference price is Europe, 100 million; USD, 120 million; Asia, 128 million. This is the way pricing is defined. Moreno?

As far as EBITDA is concerned, we had 18% in the first half. And as we said, we expect a similar trend in the second half. As far as the turnover is concerned, as we read in our press release and in the report to the financial statements, we expect versus 2019, which is a year with a better balance between the 2 halves versus the first half of 2022, which is very strong. So versus 2019, we expect a second half with a significant growth by about 30%, 3-0 percent. So organically, we have a second half 2022 which is very similar to the second half of 2019. Antoine, let me tell you one thing. Now we are 2022, we have the new collection, spring/summer 2023. We no longer go back to 2018, 2019. The reference point is 2021. The first half of 2021 will still had many stores closed in Germany, for example, as of the end of May. But the second part of the year, well, all the world was free and also the United States in the first part of 2021. And the second part of the year, well, all the stores were opened, so Antoine, the real reference here for us becomes 2021. Because if we take 2019 as a reference, 3 years have passed. In the meantime, it's not that we do not focus on 2019, but 2019 is very far away from us. Thank you, Antoine.