Brunello Cucinelli Raises 2023 Guidance Again, and Is Positive on 2024-25
MILAN — Brunello Cucinelli is on a roll. Fueled by sales momentum in the U.S., Europe and Asia, the company raised its guidance again for 2023 and issued a positive outlook for 2024-25, as it nears its goal of hitting the 1 billion euro mark in annual revenues.
In its analyst presentation for the first nine months of 2023, the company said that it expects growth in revenues of between 20 and 22 percent compared to guidance given in July of revenues of between 17 and 19 percent. In December last year the company expected 2023 sales to grow 12 percent.
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“Given the excellent sellout rate of the fall 2023 season and the exceptional order intake for the spring 2024 one, we are very confident in our balanced growth project for 2024, which we have estimated at around 10 percent,” Brunello Cucinelli, executive chairman and creative director said in a statement. He also called for peace, amid ongoing global conflict and “in these days of distressing news.”
For 2024 and 2025, the Solomeo, Italy-based firm said it expects “healthy and balanced” growth of 10 percent, based on the orders for the mens and women spring 2024 collections. “We are certain that our visibility on the 2024 growth project is now “more than good,” the company said, and 2025 is also expected to be a good year.
“As far as 2025 is concerned, we have good visibility, supported by the structural characteristics of high-end luxury demand, the potential for growth in all markets and in both channels, and the selected ongoing boutique opening project,” the company said in a statement.
In the first nine months of 2023, Brunello Cucinelli saw its overall revenues increase 27.5 percent to 818.4 million euros.
Growth in all markets and in the company’s retail and wholesale channels, as well as increases in both the women’s and men’s divisions contributed to the strong nine-month performance.
In the period ended Sept. 30, sales in Europe (not including Italy) climbed 18.3 percent to 217.9 million euros, representing 26.6 percent of the total. Resort hubs like St. Tropez and Cannes, France; and Monte Carlo benefited from the rapid and robust recovery of international tourism to Riviera region.
Revenues at home in Italy were up 24.5 percent to 97.2 million euros, accounting for 11.9 percent of the total, as the company hosted a roster of events aimed at forging a “special bond” with its clients.
Sales in the Americas jumped 21.7 percent to 284.7 million euros, accounting for 34.8 percent of the total, boosted both by retail and wholesale, as the brand attracted more new clients looking for “absolute luxury” clothing, the company said.
Revenues in Asia surged 49.7 percent to 218.6 million euros, accounting for 26.7 percent of sales. The company expressed satisfaction with the business in the area, with China now accounting for about half of the total business in the region. In response to analysts’ questions regarding the future of the Chinese market, management noted that the company is gearing up for an upswing in demand during the auspicious Year of the Dragon (2024).
“The dragon is a symbol of strength and prosperity,” remarked co-chief executive officer Luca Lisandroni adding that the “conditions were good” for solid performance.
“We are convinced that the Chinese customer increasingly appreciates the purely silent taste of our collections, rewarding their exclusiveness and positioning at the very top end of the market, with a particular focus on clothing,” the company said in the statement.
Retail sales overall rose 34.6 percent to 510.7 million euros, accounting for 62.4 percent of sales. The company now has a network of 124 boutiques, compared to 118 in Sept. 30 of last year.
Wholesale revenues rose 17.1 percent to 307.7 million euros.
In 2024, Brunello Cucinelli will open new stores in strategic locations, among them, the Miami Design District, Four Seasons Hotel in Macau and Toronto, Canada’s Yorkdale Mall.
Brunello Cucinelli is currently in the U.S. Tuesday, he celebrated 25 years of partnership with Saks with an intimate dinner hosted by the retailer, with storewide activations and the launch of an exclusive capsule collection and first fragrance. Thursday evening, Cucinelli will host a private dinner in the garden of the Chateau Marmont hotel in West Hollywood to welcome and honor the community of friends in the area that have supported the brand throughout the years.
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