Brunello Cucinelli revenue up 8.8% in first nine months of 2019
today Nov 12, 2019
Italian luxury label Brunello Cucinelli has been growing with clockwork precision in the first nine months of the year, which it expects to close with a revenue rise of 9%, improving on the 8.1% increase in 2018. The eponymous founder and CEO of the Italian cashmere specialist defined 2019 as “an excellent year” at the publication of the latest quarterly results. Between January and September, Brunello Cucinelli generated a revenue of €459.2 million, up 8.8% over the previous year (and up 7.7% at constant exchange rates).
Brunello Cucinelli posted revenue increases in all its markets and distribution channels, especially outside Italy, where it currently generates 83.4% of its revenue. Starting from North America, Cucinelli's most important market - representing 32.2% of its total sales - which generated a revenue of €148.2 million, up 9.2% compared to the same period a year earlier.
Revenue in Europe - which is roughly equivalent to North America with a 30.4% share of the total - grew 9.6% to €139.5 million, with London and Paris the top-performing cities. Revenue in China continues to grow, and now accounts for 9.5% of the total at €43.5 million (up 14.4% in the January to September period), and it is doing the same in the rest of the world, where it reached €51.9 million.
On the Italian domestic market, which accounts for 16.6% of the label’s revenue, sales increased by only 2.2% in the first nine months of the year, and were worth €74.4 million. However, Italy remains a cornerstone for Brunello Cucinelli in terms of brand image and promotion, especially during the Milan Fashion Week and the Pitti Uomo show in Florence.
In the first nine months of 2019, Brunello Cucinelli's direct retail sales, via its 103 monobrand stores, increased by 11.2%, reaching €229.2 million. In franchised stores, 29 in total, sales grew by 3.2%, reaching €25.0 million. Finally, sales to multibrand retailers and department stores increased by 6.9% and were worth €205.0 million.
An overall performance that enabled Brunello Cucinelli to strike an optimistic note: “We regard these results as very, very interesting; they allow us to paint an extremely positive picture for 2019 and to look forward serenely and confidently to 2020, in line with the forecasts of our 10-year plan for 2019-2028.”
Cucinelli explained the regularity of these results with the label’s 'humanistic' business model, which generates genuine added value for its products.
“We think we have succeeded in forging a very strong bond with consumers, for whom the sentimental value of our products becomes increasingly more significant and relevant,” said Cucinelli in a press release, underlining that the label offers a “repairs” service for its clothes, enabling customers to enjoy them for a long time.
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