Earnings Call: H1 2020

Aug 27, 2020

Good evening, COSCO operator speaking. This is the presentation of the first half twenty twenty results of the Brunello Cucinelli Group. I'd like to remind you that all participants are in listen only mode. So the initial presentation after the initial presentation, there will be the opportunity to ask questions by the financial markets. Speakers will be Mr. Brunello Cucinelli, Executive Chairman and Creative Director Moreno Charapica, CFO and Pietro Arnabaldi, Head of Investor Relations. And now I'd like to give the floor to Brunello Cucinelli. The floor is yours. So here we are and good evening everybody. I hope you are all well rested. So good evening investors, analysts and journalists. You know down well that we always appreciate these exchanges very, very much. We actually spoke just over a month ago, but during this year that we have dubbed a transition year, it was our desire to basically release and communicate data pretty often and also to convey our impressions on how the market and the world is doing. We're all based now here in Solomeo and would like to schedule the call as follows. I'd like to read out the highlights of the first half and then my comments. And after that, the CFO Moreno will delve down and then I'll resume the floor and tackle the following themes. First of all, the how the company operates today, then deliveries and winter production, winter goods production, then physical collections for springsummer 2021 and orders of the multi brand accounts in our portfolio, Then our take on the multi brand performance, e commerce, then excess inventory in the first half, but I know you are familiar with this theme, then the performance of markets, very important. And then a sum up of the expectations for the second half of the year of I. E, the 3rd Q4. And then one last thing, the sum up of our expectations for 2021 2022. I'd now like to read out my comment. A slight decrease in revenues, expected revenues minus 10% supported by the solidity of the business and of the strong order intake for the springsummer collection 2021 with a positive performance expected performance both for the 3rd and for the Q4. First half was strongly impacted by the closure of a very high number of boutiques worldwide due to the pandemic. Net revenues, you're also familiar with the figure as of 30th July, EUR205,000,000 minus EUR 29,600,000 at current exchange rates minus EUR 29,800,000 at constant exchange rates. EBITDA adjusted minus EUR 14,100,000 with an incidence on revenues amounting to minus EUR 6.8 EBIT adjusted, minus EUR 29,800,000 incidence on revenues, minus EUR 14.5 then net income adjusted minus EUR 25,800,000 incidence on revenues of 12.5 percent Then investments, EUR 22,400,000 in line with the 3 year plan. And net financial position EUR 136,500,000. So this is the way I have defined or described this half. Following this half year, strongly impacted by the pandemic, we are now moving towards a significant trend reversal. Since July 1, we have been looking at the company with a fresh new eye considering this to be a year of transition between a past time and a new time. Having reached the end of August, we can envisage that this trend should result in rising sales compared to last year for both the 3rd and the 4th quarter. Therefore, 2020 should feature a slight decrease in turnover of around 10%. As to the collections, the springsummer 2021 collections have been met with much success and the ensuing sizable order intake prompts us to envisage a good 2021 with revenues increasing by around 15%. In addition, the above leads us to view 2021 as the year of rebalancing. And now Moreno, the CFO, will focus on the details, and then I'll resume the floor. Thank you. Good evening, everybody, and thank you, Brunello. I'd like to sum up some issues that have some topics that are typical of the performance of results in the first half twenty twenty and of course, available for any questions. We'd like to recall that in all these months, strongly affected by the pandemic, we have kept our corporate structure unchanged and strongly sound, maintaining and guaranteeing the employment level and the wages of all our co workers with a healthy cost control in order to resume a multiyear growth plan as early as in the second half. Then Slide number 9 of our presentation basically shows the income statement and a proposed adjustment of the items concerning the EBITDA, EBIT, EBIT, EBIT and net income. The adjustment of data as of 30th June 2020 neutralizes the accounting effect of the application of the IFRS 16 principle and of the extraordinary provision of €30,000,000 concerning the new project Brunello Cucinelli for Humanity aimed at donating the excess apparel that generate that was a result of the emergency COVID-nineteen situation and of the subsequent temporary suspension of sales. This provision is mirrored in the item adjustment to the value of assets and it mirrors the estimate by the management about the value of the items above. The adjustment of figures as of 30th June 2019 neutralizes the accounting effects of the IFRS 16 like this year and the tax benefits arising from the so called patent box amounted to EUR 2,500,000 in the first 6 months of 2019. Slide 10 brings a detail of the reconciliation of adjusted value amounts to minus EUR 13,100,000 as of 13 June 2020 and EBIT adjusted amounts to minus EUR 29,800,000. Before moving to commenting the balance sheet, we'd like to report the stability of the first margin on Slide 11, amounting to 67.1% as of June 30, 2020, against 66.6% last year, whereas the operating cost performance is linked to the initiatives ongoing, which keeps supporting future growth plans and keep the strength of the corporate structure. We'd like to point out some cost benefits linked to some reductions in leases for the lockdown confinement period offered by some landlords in Asia and Russia as well as some contributions issued by the government to support employment and wages. These savings as a whole EUR 7,000,000 basically accounted for an incidence of revenues of 3.5%. As far as net working capital is concerned, Slide 13. The inventory reports an increase linked to 2 main effects. The first one is the confinement effect with the deliveries of the winter collections that were postponed by the very same amount of time, but it was, however, very effectively caught up with a lot of work. Secondly, the development of the business, the expansion of the network, including 5 new direct boutiques in the last 12 months, 2 hard shops and sizable expansions in selling spaces, the development of the new kids collections and the Sartorius Suromeo project and finance the increase in the digital channel. The reduction in receivables mainly mirrors the performance of sales during the lockdown and the concession of some deferred payment terms to some of our multi brand clients. This activity resulted in receivables past due as of June 30, 2020, increasing by €11,000,000 visavislastyear. In the past, we made the same choice when, for example, in 2000 and 1, 2008, we managed receivables with the very same availability and flexibility. And the result of that was that short term, we went back to normal without compromising business opportunities. Considering our receivables healthy and payable, we have prudently set aside the provision for doubtful receivables in amounts of EUR 840,000. Therefore, the balance now amounts to EUR 1,900,000 balance of the provision. And the use of this provision for losses occurred in this period was very limited and amounted to EUR 235,000 As far in line with our history, which usually losses on receivables were always 0.1 percent of revenues. As far as trade payables are concerned, no changes in the payment timing visavis suppliers, co workers and advisers. In the first half twenty twenty, we thought was a priority to maintain the strategic investment plan supporting the brand, production and the exclusive presence on markets. Investments over the time concerned on Slide 14, therefore, amounted to EUR 22,300,000, up against the €18,800,000 invested as of 30th June 2019. As far as the financial position of the group is concerned, Slide 15, the net financial debt the characteristic figure amount to EUR 136,500,000 as of 30 June 2020 against EUR 46,600,000 last year. Including the financial debt for leasing, as required by the IFRS 16, the net financial debt amounts to EUR 621,000,000 visavis436,000,000 last year. Due to new leases contracts. The performance of net debt over the time was strongly impacted by the effects of the pandemic. That can be summed up in 3 main streams: the increase in net working capital, the extraordinary inventory write down, the lower contribution margin produced by the decrease in revenues as of 30th June 2020. All considering the above and the need to have additional funding sources during the first half twenty twenty, new loans have been taken out granted by banks on a trust basis, I. E. Without triggering the business support measures made available by the Italian government. Starting from March, the new loans granted amounted to taken out have amounted to EUR 116,500,000 with competitive interest rates, therefore, with a balanced impact on the income statement. So this is the end of my presentation. Thank you very much. And I give the floor back to Brunello. So here we are. So basically, since July 1, we want to look at our company with a new fresh eye without being subject to the what happened to you in the first half. We consider this time as a transition year within the past and the new time. As of today, we can say that we have led our company to a safer shore and we have conveyed to our esteemed employees the physical safety at work and also the security of having a job. Across the company, the awareness is strong that we need to be quick, flexible, pragmatic, brave. As we know that it is important to be able to live with the virus that can evolve on a daily basis. So the company is basically being fully operation fully operational today with the 2024 well, the 20 24 employees, they're all at work. As you know, with COVID test carried out every 2 weeks, this project started back in April and will end when the pandemic ends, hopefully soon. But this way, we can work in the company feeling more secure. And now deliveries. We have completed all the deliveries of the winter goods according to the timing that we had set. Everything had been caught up with by July 30th. All stores worldwide are only displaying spring sorry, fallwinter 2020 goods as it has always been the case. And this is translating into very positive results in terms of both sellout and image. Collections, springsummer 2021. These collections were displayed physically in the showrooms in Shanghai, New York, London, Munich, Milan, Solomeo, in the time that was when it was decided, that is in July, like every year. I'd now like to focus on this interesting topic. It could be perhaps we have designed the most beautiful collections in our heritage, now 40 years of history. This is the judgment or passed by our multi brand clients and also our store managers. The press has not yet seen them. This usually happens in September. And this is a great result also supported by the new trend in taste that is very akin to our taste. Order intake, very important. It is close to 60%. And I would like to say that it has been exciting. And all this augurs well for an important pickup and recovery in the second half of the year as well as a great start to 2021. Our impression is that many multi brand clients, we have 500 accounts, are strongly selecting their suppliers, both based on the taste of the collections, which is the way it usually goes, but also at this moment in time based on the soundness of the company. And this relates to timely deliveries, special help with weekly restockings And also the fact that it was possible to physically see and touch and feel collections was very important. Being having the buying the $7,000 suit without even touching it is not the same thing. So as far as collections are concerned, drawing to the conclusions, we can say that these true beautiful multi brand accounts, we'd like to pass a very positive judgment on them because what is happening with them is that they are redesigning, reshaping their business and they are trying to now sort out the companies, sorting out their partners and trying to single out the reliable companies they want to make business for in the next with sorry in the next 3 to 5 years. So we are very happy with this with the new planning, very interesting for us, because we want to always have a mix between multi brand and retail business, 45% 55% is the percentage, and we are investing on this. We have been for a long time. Then e commerce, the excellent performance of this channel is continuing. Over the past few years, we have invested heavily in this channel, both in terms of money, but also in terms of time and minds. And of course, it's a fundamental channel for communication. And as you know, the structure was is also equipped the facilities are equipped to grow to also sustain an important growth in the coming years. The conversion rate is extremely high in the e commerce. A couple of words on the inventory first half, the excess inventory. And we had done the write down on this. Everything is closed. We don't need to do any more impairments or write downs. I know you are all familiar with this project, but I'd like to add 2 very positive notes that frankly moved us somehow. The first remark is that over the past 30 days, we have been contacted by a wealth of people worldwide who are really concerned and keen on improving mankind. Just to mention, 1, the beautiful and very humane Sharon Stone. The second important thing is that we have given very important interviews on this topic. The latest one happened yesterday with the very prestigious New York Times. And tomorrow, we have another important interview scheduled with an important Chinese television channel on the very same topic. And as of today, we can say that this extraordinary project, this concerning this year, Rene Locucinelli for Humanity really is a great resource for mankind and for the company itself. Markets. Towards June, I was impressed by a great statement by the Japanese Premier or maybe someone who's very close to the Prime Minister, who stated, we have to get used to living with the virus. And this we were very impressed with the statement. And today, we keep working with this spirit because there's nothing else that we can do. So starting from July 1, why do I always mention July 1? Because on that date all our stores were open, so it was a kind of resumption of activities. And secondly, because we would like to forget the results of the quarter April to June. So across the board, we are working hard with local clients and local customers are very happy to go back to the boutiques in their own cities. And they are also reshaping new human relations with the sales assistants. Someone said that dry leaves always fall close to the trunk of the tree. So when the tough times come along, we stay close. So you see how we have rediscovered the value of being close to One Origins. And this restart is happening with some caution. It is just the way it is. I am frightened myself. 10 minutes ago, I took another swab. It is not very it is a bit of a nuisance, I know, but this way we can be more secure. And this resumption of activity basically is informed by everyone's desire to go back to normal, to rediscover the love for beautiful things, for dressing well, for buying beautiful things, possibly exclusive objects And always considering where things have been made and where the damage has been caused to mankind. And I believe that as we were saying this morning in the board meeting, there is a desire to support one's area of origin. So now if I have to buy a present, a gift for my daughters, I prefer to go to the city of Perugia here nearby rather than anywhere else. So we are now once again going enjoying the pleasures of life with some due caution, although this fear is decreasing on a daily basis. So what have we noticed about customers on a worldwide? Well, loyal customers have come back with pleasure and paying compliments. Their behavior is the same. For our company, it is the same average price and the same value of transactions. This is very, very important. The conversion rate is much higher also in the physical channel. So as you know, it is true that our stores very much look like a home. So once you step into the store, you can grab a bite to eat, you can sit down, the brand ambassador will show you around. So this is a very important way of handling our customers. And as I was saying, the visits to the websites have risen strongly because the customers like to preview what they can buy in the physical store. So in terms of areas worldwide, Russia and China are performing well. So let's say everything is going well. Europe, it has 2 speeds. There is the Austria, Germany, Switzerland, Holland are going normalizing slowly. Mediterranean countries, Italy included and France, a bit more tough there. And then we would like to make a distinction between large cities and average towns. For example, the distinction between London and Hamburg on average cities, everything is you see, the situation is much better. Then the U. S, this was the last country hit by the virus or maybe the one with the longest tail, but we actually see visible signs of restart. And we see this not just in our boutiques, but also in our multi brand presence. The first sign is the fact that there are many visits to the website and a very positive mood. They talk to us and so it's a really good situation. And then the strong domestic nature of their market, But so in our opinion, as soon as fears are assuaged, we believe that all the conditions are there in the U. S. For a very, very appealing business. But I say it once again, this is just our take on things. Then investments. As far as 2020 is concerned, the second half, we confirm that the investment plan is unchanged. All the plans that we had discussed on July 14, they have been implemented. And I'd like to remind you that we so the Paris Avenue Mont Saint Stor was due to open on July sorry, on September 12. We will double the spaces in the very expensive Madison Avenue in New York. So a 600 square meter store. Then we will double the store the size of the St. Petersburg store and the same Tokyo Omotesando and also in Berg store and the same Tokyo Omotesando and also in Las Vegas. And these projects will take place between November, December and then the beginning of the New Year. So now moving towards the conclusion, we can say that we now are at the end of August and we can say that as we said before, there has been a significant trend reversal. Of course, many stores were closed closed. And in the Q3, we should deliver a growth against last year and also a margin level of around 13%, 14% in the 3rd quarter. Since it is the end of August, we are pretty sure. 4th quarter, the very same thing. So the coming the 2 coming quarters will be in positive territory. And as a result, 2020 will feature a slight decrease of 10% in revenues. Well, 10% is not slight, but for the time being, we would be very happy with this result. A couple of words on 2021 to say that since we have had a strong order intake for spring summer that revenues will deliver 15% growth visavis2020, EBITDA around 13%, 14%. We will invest 6% instead of 8% percent because 1.5% will be pulled forward this year for the project that I mentioned before. And for next year, we envisage a rebalancing of inventory and net financial position. So 2021 will be the year of rebalancing. So to conclude, this morning during the board meeting, I was very firm in saying that, especially to the pessimists, that I recall the fact that we need to be pragmatic, focused, humble and quick. And I am particularly happy with the fact that I don't know why, but lately in the company, there is a lot of creativity going around. And this way, we were able to focus on important projects for the future of this company. So thanks to the above. We can be particularly excited about our business, of course, those things considered. But we want to once again restate that on the one hand, we apply all the due caution on a daily basis. And on the other hand, we are becoming more adjusted and accustomed to living together with the pandemic. And I have to say that I have been subject to 6 different swabs to screen for COVID since April. So this is what we think of the company. Thank you very much. We open the floor for questions. But we are very confident. And of course, we're trying to forget what happened until June 30th. So when we give you figures, oh, yes, another important thing, we will on October 8, we will be releasing the figures on the next quarter. But that's when we will tell you how the quarter went. We will try not to mix it with the beginning of the year. So thanks for your attention. We are here for you now. Whatever you need, of course, you can also call us whenever you want. So since there are no questions, I'd like we'd like to thank you very, very much. We have been listed since 2019 sorry, 2012, the speaker corrects himself. And it is the first call that we have when we've had no questions, it is true that we actually have contacts every month for 1.5 months. Sometimes, maybe we repeat ourselves. But this year, we want to keep really organizing very calls very often. There is question from the English conference call. Antoine Perge. Yes. Hi. Can you hear me? Yes, they can hear me, I'm being told, so you can go ahead. Thank you. Yes. Hi, good evening. It's Antoine Bege at HSBC. I've got three questions. First of all, I think you mentioned you were not seeing much difference in the term in terms of your consumer behavior. If you could elaborate a little bit on this and Sorry, can you please repeat because they were talking in Italian and I couldn't hear your question. Can you please start again? Thank you. Okay. So I've got 3 questions. So the first one is, I think you mentioned that in terms of consumer behavior, you are not seeing many changes. But yet at the same time, you saw quite a big surge in online sales. So do you think that for a business like yourself, especially where there is more apparel and when your customer need to try close that it's a trend that could be sustained? My second question relates to current trading. I think you mentioned you are expecting Q3 to be positive. So is it already when you take the July August, so quarter to date, are you already in positive territory? Or do you expect that it's September that will bring you there? And thirdly, I'm not sure I understood it was if it was for the Q3, Q4 or the second half as a whole? Thank you very much. Yes, very, very well. Let's start from the last question. Yes, it is precisely 13%, 14% and this concerns the second half of the year, which is basically what we would like to envisage for 2021? Then the second question on the positive territory, actually we already are in positive territory, So we expect the Q3 to still be in positive territory. As far as the change in behavior or the online behavior of consumers, So as I was saying before, we already have the facilities ready and equipped to maybe increase growth by 5 times. Maybe we just need to add a few staff to deal with the shipping. But my special thoughts on this, and we said this morning, I think that this year we will we all across the world, we will achieve a level of online business that is unprecedented and will not also repeat itself. This is just my impression, mind you. This will not repeat be repeated in the future because what happens is that people need to go back to the physical world. We actually see it from the orders that are made physically in the showrooms all around the world that are compared to the ones online. The online orders are always, always slightly less fascinating, so to speak, because you don't have the possibility to touch and feel. So it is true that our platforms that show the things better. But somebody a client said to me the other day, Oh, well, he was placing an order, Oh, I like the pair of trousers. They said leather trousers. And the season said, well, this is not leather, it is fabric. So I think that we have really pinged on the online channel. So personally, I myself, I need to go on a diet. I need a physical channel now. So it will still be important, the online channel, but we also give a lot of importance to the physical store. Then in September, we will also organize some libraries in the stores with books same language of the market. Just to convey this idea that you can sit down in the store, maybe the husband waits for the wife to read the book with corners and spaces that are more exclusive. So this is just my impression, obviously. We have shopped online so much that we will shop less. By the way, Jeff Bezos said something very interesting when he came to Soloveo last year. He said, well, of course, my delivery of a parcel cannot be charming or fascinating. Of course, if you have to buy some dog food, then of course, online shopping is fine. But I think that when shopping, you also need to touch and feel the different objects. And you also maybe need to be advised because maybe you receive your parcel at home, you put on suits and who tells you whether the suit suits you or not? You see, it is not the same thing that if somebody else tells you somebody in the business like the sales assistant. But by the way, this is just my take on the situation. Next question from the Italian conference, JPMorgan. Good evening and thank you. I have three questions. The first one is on the trend for July August. Positive? But do we know that there's some help from the wholesale delayed shipment? Sorry, I couldn't get the question. The second question is on the inventory. I was surprised to see such an increase given the impairment. I know that there's the shipment on the wholesale. I apologize, but the question is not clear at all. Since you have a lot of visibility. Some more colors on the EBIT. Since you have visibility on the top line, Can you tell us how you see the EBIT? So in terms of July August, I think that we all had a plan for the restart. And our plan for the restart has been actually has outperformed our expectation, has been better than we expected. So the like for like was better than we expected because I think that we are working with 4 budgets. We have the best budget, then the second, the third and the 4th. We are working on the second budget. We have 1 better and 1 and 2 worse. So much better compared to what we expected. Then the second question, I didn't really get it. The second question inventory and receivables. So as far as receivables are concerned, we have had these 500 clients forever. They never caused any issues. And in some cases, we actually offered a more longer deferment because we have known them for a long time. But you see, this is translating into good results, not just for the springsummer collection, but also for the plans and the spaces that they are being allotted to us in the coming 5 years precisely because we delivered perfectly on time as far as the winter goods are concerned. And some other companies are struggling with deliveries. So they and they need goods for their business. So this is a very important aspect. As far as inventory is concerned, once neutralized from the extraordinary provision to the fund, there is an increase of EUR 14,000,000 visavis December 31, 2019 EUR 39,000,000 visavis 30th June 2019. As I explained in my speech, but I'm here to repeat myself, the increase in inventory originated from 2 factors. The first one has to do with COVID. In March April, we were in confinement, wherefore the production times were postponed and also the shipment times were postponed. So on June 30, we had some extra raw materials for fallwinter, EUR 5,000,000 more visavischia and finished products that were ready for delivery. And as Brunello said, deliveries were completed in August. So in July August, we completed the deliveries of the winter goods. And last year, they had happened in May June. And as a result, this was the physical this was the reason of the increase in the inventory. The other factor is the increase in the business visavis June 2019. We have 5 new openings, 2 openings in the department stores and the expansion, the extension of stores mentioned by Brunello without increasing a number of stores, but just expanding the existing spaces to accommodate the larger collection and also accessories and the children collection. So there were these expansions and also the new lines of Sartorius Oromeo and kids collection that was it as of June 30, 20 20. So what I would like to say is that at the end of December, we will have the normal management of the inventory once the write down of the 1st semester happens. And we will no longer have the effect of these deferred deliveries to our multi brand clients as we like we had in June this year. For multi brand deliveries, there has been 1 month deferment in order to have a new balance in the goods on display. So we display the goods in July and not in June. And this is something already well established because maybe we had exaggerated the other way before in showing coats in the shop windows at the end of May. And we think that every balancing has taken place. Very well. Thank you. Thank you, Melanie. I apologize for not understanding the second question. I wanted to wish you all the best because I know that your parents are fine and you were worried 3 months ago. This is something Next question from the Italian conference call Paola Carboni Equita. Yes. Good evening and good evening, Brunello. We thought there would be no questions, And I would say it's the first time in 9 years. So we are very happy to be here. Paola? The first question is on the first margin. That has improved. I was expecting operating deleverage. Another question? The optimism for the second half of the year? And in particular, looking at the wholesale where you have more visibility, I was wondering whether you will see a similar performance also for the restocking that will mostly happen in the Q4. So orders have were confirmed and delivered. The second part on the second part of the season, I. E. Restocking, do you expect the same growth trends? Can I carry on? Yes, of course. The other question is on savings, the cost of leases and personnel or government aid. I wondered whether in your guidance of 13, 14 EBITDA margin in the second half, if you are assuming some the same support in the second half too for leases? Or did you assume that you will keep benefiting from these measures? And the last question. Inventory in December by deferring the shipment towards the sales season. Do you think that the summer deliveries will also be postponed to January? So first of all, the increase in the first margin is limited, 0.5 percentage point. So it's close to nothing. We can say that it goes to show that we did not apply any discounts. There has been a reduction in revenues and we explained and grounded it. But since we've made the fact that we've maintained the first margin means very clearly that we did not apply discounts. So from this point of view, nothing new, stable situation and it goes to prove that we made any discount. Then savings, limited savings, thanks to proposals that we received from landlords in Asia and Russia because it is a habit and widespread habit for them. So we welcomed this situation, but we're talking about EUR 3,800,000 and in rents, but this will not be true for the second half. And the same also goes for the savings in the cost of labor, EUR EUR 3,000,000 there. And they were all linked to the first half because with the resumption of business and the full employment since July, we do not expect any benefits on the cost of labor. As far as advertising is concerned, the second half, no changes there. We maintain our plan. And at the end of the year, you will see that the A and P investments is the same, 5.5%. Then another interesting topic is reassortment or restockings. So you know that due to production issues, since our production only happens in Italy with 3 64 suppliers, our company is very flexible. So we thought that it would take the whole of August to catch up, but we ended it all by the end of July. So now we are ready for the first reassortment, restocking. So you know that by nature, multi brands canceled 15%, 20% of orders. It did not happen with us though. The 25%, 30% of orders were canceled by companies due to production issues on fallwinter. Of course, now many clients have a shortage of goods. And of course, we are in an advantageous situation because of that. So our idea here sorry, one last thing. You asked us about the deferment in August sorry, of the springsummer collection. I would say not very much. So in early December, they will display the resort items when you go on holidays in different parts of the world. So there is a rebalancing there. Of course, as I said before, we have budget number 2, and we are working as if we are supposed to live with the pandemic. So this is the situation. Thank you. First of all, thank you very much because we thought that there would be no questions and the questions are always useful. So thank you. For anything you might need, give us a call. Maybe we might even be boring with a call every month and a half. But at times like this, we that's what we preferred to do. So we wanted to really speak to you very often. So what I am certain of is that we will have 2 main changes due to the pandemic. First of all, to conclude, since we were scared and we were frightened, Now we do not want to come across arrogant people. This is the general idea. And as we were saying yesterday with the New York Times, probably what we feel even more strongly is the sustainability. Environmental sustainability, obviously, but the human sustainability is changing. People want to know whether products are manufactured without wrecking havoc in the environment and mankind. So I think that just to conclude something very interesting. We called all our raw material suppliers, Zena, Loro Piana, the important producers. And since they did not have much time to design the winter 2021 collection, we told them do not worry. We can meet up and we will try and recover this missing month, 1.5 months without asking for any discount on textiles, although we worked on them together. And this is actually translating into a huge benefit. And then another huge benefit from the multi brands, we have we are already talking about the plans for the next 3 to 5 years with our multi brand accounts. Best wishes and please strike up a counter with us whenever you feel like it. Thank you.