the Italian luxury company Brunello Cucinelli released preliminary financial data for the fiscal year ending December 31, 2023. For the reported period, the company’s revenue exceeded the 1 billion Euro milestone for the first time, reaching 1.1395 billion Euros. This represents a 23.9% increase over the same period last year at current exchange rates, and a 26.0% increase at constant exchange rates. The company achieved excellent performance across all geographical regions and distribution channels.
In particular, sales in the Asian market surged by 40.4% to 307 million Euros year-over-year. The company noted: “Asia remains a region of focus, both in terms of achievements and growth potential… In China, we have noticed how our brand positioning is increasingly recognized, becoming clearer and more consistent with other parts of the world year by year. Indeed, the significant expansion in the Chinese market is closely tied to the growth in customer appreciation and loyalty… We warmly welcome this, as it confirms the increasingly close relationship between the brand and China.”
Brunello Cucinelli first surpassed 500 million Euros in revenue in the 2017 fiscal year and has doubled this figure in six years—except for a 10.5% decline in 2020 due to the pandemic. The company saw stable growth in other years and accelerated post-pandemic: +10.7% in 2018, +9.9% in 2019, +30.9% in 2021, and +29.1% in 2022.
The company’s original goal of doubling sales over ten years from 2019 to 2028 is expected to be achieved as early as 2024.
Brunello Cucinelli, the brand’s founder, executive chairman, and creative director, commented that the fiscal year 2023 was particularly important and pivotal for the Brunello Cucinelli brand. With a 23.9% increase in business turnover and considering the excellent sales performance, he expects the company’s profits this year to be substantial. “We are proud of the image conveyed by our brand to the world of luxury craftsmanship and lifestyle.”
“As expected, the fourth quarter of 2023 achieved the best performance in history, with revenues of 321 million Euros, a 15.6% increase over the fourth quarter of 2022. Considering the high baseline of the fourth quarter of last year—when we already reported excellent performance with an overall 32% increase and a 53% increase in the wholesale channel—this achievement is even more significant. Both wholesale and retail channels grew in the fourth quarter of 2023,” added Brunello Cucinelli.
Brunello Cucinelli revealed key factors for the success in the 2023 fiscal year:
- Exclusivity, representing a fundamental element of “absolute luxury” and demand for rare, high-quality products.
- Focus on the highest-end positioning in the luxury industry, featuring products with high-quality craftsmanship.
- Recognition of Brunello Cucinelli as a lifestyle brand, with a solid foundation in ready-to-wear and a universally acknowledged taste that is both understated and elegant.
- Balance achieved across different sales channels and geographic regions where the brand operates globally.
In March 2023, the Brunello Cucinelli brand received the “Neiman Marcus Fashion Award” in Paris.
Furthermore, during the reported period, Brunello Cucinelli invested approximately 78 million Euros in business, digital, technology, production, and logistics to continue its investment strategy to maintain, strengthen, and increase the attractiveness of the brand’s image and reputation. The company stated that all implemented projects were guided by fundamental consistency, aiming to maintain the brand’s contemporaneity while enhancing entrepreneurial concepts and establishing ethical values.
Investments in craftsmanship played a significant role in Brunello Cucinelli’s three-year investment plan, mainly focusing on major expansions at the Solomeo headquarters factory and the new construction of a men’s tailoring factory in Penne, Abruzzo:
- In the suburbs of Solomeo, the company is reconstructing an 8-hectare area previously used as an industrial complex for Brunello Cucinelli’s extensive expansion, strengthening ties with the local community.
- Another significant project is the construction of a “Bella Fabbrica” in Penne, Abruzzo, planned for spring 2025. This factory will produce men’s coats and custom suits, enhancing the capacity for men’s products. Notably, Penne is renowned as a cradle of exceptional men’s tailoring. This new factory will cover approximately 4,500 square meters and employ up to 350 professional artisans. Until the new factory is completed, operations will continue in a rented facility, currently with 75 full-time employees, aiming to increase to 100 by the end of 2024.
Additionally, substantial orders for the Spring/Summer 2024 collection and the promising start of the Fall/Winter 2024 collection in both standalone boutiques and multi-brand stores make the company optimistic about the first half of the 2024 fiscal year.
Given this, Cucinelli is confident about the performance in the 2024 fiscal year. Looking forward, he stated, “We expect to achieve around a 10% healthy growth in the 2024 fiscal year, with very substantial profit margins and profits, in line with our concepts of ‘elegant growth’ and ‘healthy profitability’… Moreover, we anticipate that the 2025 fiscal year’s turnover will continue to achieve a balanced and robust growth of about 10%.”
—By Market:
In the 2023 fiscal year, the brand saw growth in all markets. Brunello Cucinelli revealed, “In different geographic regions, we noticed a universal demand from end customers for understated, elegant, unique, and quality products. They increasingly want to understand the history and values behind the products they purchase.“
—By Channel
As of 9:00 AM local time on January 9th, Brunello Cucinelli’s stock price was 86 Euros, up 1.84% from the previous day’s closing price, with a latest market value of 5.763 billion Euros.
| Source: Brunello Cucinelli Official Financial Report
| Image Credit: Brunello Cucinelli Official Website
丨Reporter Ying Yuze
| Editor: Wang Jiaqi
