So far this earnings season luxury brands, with an exception or two, have beat market expectations for the period of October to December and full year 2023.
Ferrari joined the beat-the-expectations club with their earnings announcement today and we even got a bit of a bonus. On the bonus side, it appears that Lewis Hamilton will make a shock move to its Formula 1 car in 2025. On the earning side, the brand reported full year 2023 earnings that beat Wall Street’s expectations and broke earnings records.
The luxury automaker launched five new models in 2023 en route to earnings (before interest and taxes) of 1.6 billion Euros, up 32 percent from 2022 levels. This translates into earnings per share of 6.90 Euros, crushing expectations for 6.73 Euros and setting a corporate record. Next year continues to look bullish with Ferrari expecting earnings per share to rise to 7.5, which is mostly in line with Wall Street forecasts.
Ferrari’s shares surged by about 12.5 percent today, giving investors in the company’s shares (ticker: RACE) at 15 percent total return in 2024, dwarfing the rest of the luxury industry.
You can find Ferrari’s results here: https://lnkd.in/eu-f8ZWz
The next major luxury earnings announcements will come from the US when Ralph Lauren, Tapestry, and Capri (the latter two not yet merged) on February 8.