On the evening of August 29th, Central European Summer Time, following the preliminary performance announcement in mid-July, Italian luxury group Brunello Cucinelli unveiled the complete financial results for the first half of 2023 fiscal year. Sales revenue increased by 31.0% year-on-year to 543.9 million euros (calculated at a fixed exchange rate: +30.5%), and both EBIT (Earnings Before Interest and Taxes), net profit, and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) achieved double-digit growth.
Brunello Cucinelli, the brand’s founder and CEO of parent company Casa di Moda, stated, “The first half of 2023 ended with excellent results both in terms of sales and profits. Globally, we believe that there is a strong demand for ready-to-wear displaying high quality and craftsmanship, with a special focus on the exclusivity and rarity of these items. All this translates into great satisfaction for the ‘positioning of our brand’ at the top of the luxury pyramid. As eight months of this very interesting year have now gone by, and given the excellent start to sales at the boutiques of the Autumn – Winter collections, we envisage a pleasant end to the year with a turnover up around +19% and profits that we could define as ‘highly appreciable.’ The Spring – Summer 2024 men’s and women’s order collection is coming to an end with excellent results and great appreciation for taste and sobriety as the true identification of that ‘quiet luxury’ much valued at this moment in human history. This makes us very confident in achieving our growth outlook of around +10% for next year.”
On the second day after the financial report release, as of 12:00 PM local time on August 30th (6:00 PM GMT+8), Brunello Cucinelli’s stock price rose by 4.92%, with a current market value of approximately 5.3 billion euros.
As of June 30th, the key financial data for Brunello Cucinelli in the first half of 2023 fiscal year is as follows:
——By Market:
Europe:
- Strong local demand across the entire European continent;
- Luxury tourism is growing, especially from visitors from North America, mainly concentrated in Italy, major European capitals, and resorts;
- A significant number of clients and professional reporters participated in Pitti Uomo Men’s Fashion Week held in Florence and subsequently, Milan Fashion Week, giving very positive feedback on Brunello Cucinelli’s Spring/Summer 2024 men’s collection.
Americas:
- High-end luxury market demand is experiencing structural growth;
- Despite the high comparison base from last year, the region achieved robust growth in the second quarter, with a growth rate of 67%;
- Active performance of American customers also boosted strong growth in Europe and Italy;
- Consumers are eager to visit physical stores and attend various events, including the Neiman Marcus Award Celebration held in Dallas in April.
Asia:
- In Asia, especially in China, significant value growth has been achieved, although Brunello Cucinelli indicates that sales shares in these markets are still limited;
- Brunello Cucinelli is gradually realizing the huge growth potential of the Chinese market;
- Japan and South Korea maintain steady growth based almost entirely on domestic markets;
- The Middle East region shows very strong growth.
——By Channel:
Retail:
- Very high sell-through rates, product sales performing well on a comparable basis, and the base is tending to normalize this year;
- The boutique network currently includes 124 directly operated stores, and the only new flagship store opened in the “Mall of Emirates” in Dubai during the second quarter.
Wholesale:
The sales of the Spring/Summer 2023 collection were very good in boutiques and luxury department stores, and the first batch of sales data for the Fall/Winter 2023 collection, which began delivery in the past few weeks, was also very encouraging.
Looking ahead, Brunello Cucinelli stated that the prospects for the entire year of 2023 are “very positive,” with an expected revenue growth of 19%, a healthy profit margin, and very attractive earnings growth. Thanks to the positive reception of the Spring/Summer 2024 collection, Brunello Cucinelli believes that the sales prospects for 2024 are very promising, with a healthy and balanced growth of around 10%, continuing the brand’s elegant style and uniqueness.
｜Source: Brunello Cucinelli‘s Official Financial Report
｜Image Credit: Brunello Cucinelli’s Official Website
｜Editor: LeZhi
