Brunello Cucinelli Reports 16.5% Sales Growth in Q1
The performance was driven by increases in all the company's markets, and Cucinelli confirmed the forecast of a 10 percent gain in sales in 2024.
MILAN — Brunello Cucinelli continues to fire on all cylinders.
Despite the macroeconomic and social uncertainties and a general slowdown in the luxury fashion segment, Cucinelli's namesake company reported a 16.5 percent increase in revenues in the first three months of the year ended March 31. Sales amounted to 309.1 million euros, compared with 265.3 million euros in the same period last year. At constant exchange rates, revenues rose 17.9 percent.
Cucinelli, who holds the role of executive chairman and creative director of the company, attributed the performance to “the value of exclusivity, rarity and creativity in 'gentle luxury,' craftsmanship and manual skills.” He has often underscored he prefers "gentle luxury" to the oft-cited "quiet luxury" trend.
Based on the performance of the quarter and the orders for the fall
2024 men's and women's collections, Cucinelli confirmed expectations of 10 percent growth in 2024 and “healthy and balanced profits.” The forecast of a 10 percent increase in 2025 sales was also confirmed.
During a call with analysts, he said that operating profits in 2024 are expected to improve by 10 to 20 basis points and that net profit margin is forecast to stand at around 10 percent of sales.
It was noted that the quarter also benefited from last year's first-quarter basis of comparison, and from the sale of the spring 2024 collection.
“We are very confident that the pursuit of a beautiful, well-made, exclusive and rare product is destined to continue over time, in recognition of the very high value of our manual work and craftsmanship,” said Cucinelli.
“I would like to conclude this document of a financial nature with a brief humanistic note: in these times, and for what seems like an excessively long time, mankind has day after day been astoundingly witnessing a number of unforeseen conflicts between humankind, between sisters and brothers indeed,” he added. “However, I am certain that common sense and universal harmony will return to guide the actions of those who are responsible for achieving a common destiny potentially rich in joy. Inspired by my master Pythagoras, my wish is that Creation will help this awakening in every part of the world.”
In the quarter, sales in Europe, including Italy, rose 13.9 percent to 108.8 million euros, representing 35.2 percent of the total, driven by a more diversified cluster of tourists, compared to a predominantly American one in the previous quarters.
In the quarter, sales in Italy climbed 26.8 percent to 35 million euros, accounting for 11.3 percent of the total. During the quarter a new flagship was opened in Rome in the luxury shopping street Via dei Condotti and a boutique in the tony Tuscan resort Forte dei Marmi.
Sales in the Americas amounted to 114.2 million euros, up 19.5 percent on last year, representing 36.9 percent of the total, boosted by the appetite of local shoppers.
Revenues in Asia grew 15 percent to 86.1 million euros, accounting for 27.9 percent of the total. Cucinelli touted the potential of the area, whose performance in the quarter was lifted by growth in China, Japan, South Korea and the Middle East.
Retail sales rose 15 percent to 188.6 million euros, representing 61 percent of the total.
As of March 31, the number of directly operated stores amounted to 125, unchanged as of the end of December last year.
The wholesale channel registered sales of 120.5 million euros, up 19 percent on last year, and accounting for 39 percent of the total.
In March, the brand unveiled its first eyewear collections with EssilorLuxottica under a 10-year license.