On the afternoon of July 11, local time, Italian luxury brand Brunello Cucinelli released its preliminary operating data for the first half of 2024, as reviewed and approved by the Board of Directors. The data showed that first-half revenue reached €620.7 million, representing a 14.1% increase compared to the same period last year based on current exchange rates (14.7% at constant exchange rates).
All geographical regions achieved very positive performances, with sales in the Americas increasing by 19.4%, Europe by 9.0%, and Asia by 14.3%. The company emphasized, “The results for the first half confirm the growth trend in the Chinese market, which is gradually becoming a very promising key market for our brand.”
Growth was balanced across both major sales channels: retail sales grew by 14.7%, and wholesale by 13.1%.
Brunello Cucinelli stated in its financial report that the performance in the first half was particularly outstanding, and with substantial orders for the Fall/Winter 2024 season, the brand is confident in maintaining around 10% stable revenue growth for 2024, achieving balanced and sustainable profits.
Brunello Cucinelli, the brand’s founder, executive chairman, and creative director, commented on the first-half performance, saying, “The first half of the year closed reporting excellent results in terms of turnover, and given the quality of sales, we expect the same in profits. We feel that the brand is experiencing a very positive momentum in terms of global image. This leads us to confirm our 2024 projected sales growth of around 10%, as well as adequate profits.
After three years of meticulous work, in a few days we will present our new corporate website to the world press in Milan, a project imagined and built together with Artificial Intelligence, which is probably one of the first in the world. For us it is something extraordinary that will enable our employees to look at Artificial Intelligence with excitement, confidence and familiarity.
As the men’s spring summer 2025 sales campaign is almost over and the women’s has started, given the orders in our portfolio and the excellent Spring Summer 2024 sell-outs, we envisage for 2025 a healthy growth of around 10%.”
The report stated, “We believe we can say that these impressive results clearly confirm how our Casa di Moda is perceived overall in every geographical area as a Ready to Wear company but also as a lifestyle company, with a positioning in the highest segment of the luxury sector, with exclusive offerings that meet the demand for rare products of the highest quality.
We are honoured by clients’, journalists’ and multi-brands’ appreciation of our concept of “gentle luxury, a symbol of beauty within measure”, which we attempt to infuse into all our creations, from ready-towear lines to accessories, seeking a balance of style between contemporaneity and sober taste”
The company further added, “We found a growing appreciation from new clients who, together with those already loyal to the brand, contributed to the structural increase in demand for exclusive, special, contemporary products, with balanced distribution in all markets: Americas, Asia, Europe.
The importance of local client is confirmed, with the positive contribution of tourism, characterised by a greater diversification of nationalities. Especially in Europe, there is a steady presence from US customers, as well as an increase in Asian customers.”
Additionally, sales of the Spring/Summer 2024 collection have been very optimistic. The new Fall/Winter 2024 collection has also achieved very encouraging results, contributing significantly in the first half of 2024. “We believe that luxury customers are increasingly focused on profit levels, company behavior, manufacturing methods, and ethical considerations such as working conditions, wages, and workplace conditions. These aspects form the basis of our ‘humanistic capitalism’ and ‘human sustainability’ concepts, which we believe will become increasingly significant in the coming years.”
Moreover, the project to double the Solomeo factory, set to conclude by 2025, will continue. The company stated, “We believe that alongside our medium to long-term growth plans, there must be a solid project that enables us to further enhance handcrafted production.” Meanwhile, significant investments over the 2024-2025 period will ensure Brunello Cucinelli’s production capacity for the next decade, supporting its plan to double revenue by 2030.
Additionally, Brunello Cucinelli will build a new factory in the Borgo suburb, redeveloping and restoring a previous industrial complex. “This major restoration will ensure we do not use undeveloped land, aligning with our brand’s vision of protecting the environment and landscape while strengthening community relationships.”
The company also revealed further significant investments concentrated on opening new production facilities in Italy to produce men’s coats and bespoke suits. These factories will be located in the hubs of excellence for handcrafted tailoring: Penne in Abruzzo and Gubbio in Umbria.
Brunello Cucinelli shared, “In Gubbio, we will also build a small factory with a magnificent view of the medieval castle, where we can coexist harmoniously with creativity. I am very confident in the value of beautifully made, finely crafted Italian garments, which can be passed down as heritage. Perhaps in the near future, the question will not be who will buy them, but whose skilled hands will create these masterpieces. We believe that welcoming new artisans emerging in the field of excellence is a prerequisite for comprehensively and robustly addressing long-term balanced growth plans while maintaining the fundamental characteristics that we believe set us apart in the market: a strong focus on quality, craftsmanship, and taste.”
He stated, “Investing in handcrafted production highlights our long-standing emphasis on the absolute importance and fundamental role of Italy. We have approximately 400 artisanal workshops (small craft enterprises) located in Italy. Alongside our directly managed manufacturing plants, they contribute to the creation of our product lines. By enhancing product creativity, quality, and reliability of delivery, these craft workshops help to supplement the pure handcrafting skills (using needles, threads, and scissors) in 60% of our collections, a proportion that has increased in recent years.”
It is reported that these small artisanal workshops are fully integrated into Brunello Cucinelli’s manufacturing process and can invigorate the collections developed internally by the creative team and artisans. “In recent months, we have further strengthened this manufacturing capability by expanding the workshops we currently collaborate with and hiring young people favored by our company. Our development has also benefited from new highly specialized laboratories. Over the past year, the number of our small craft enterprises has increased, along with the number of artisans working there, 75% of whom are located in Umbria and the remaining 25% in other regions of Italy.”
Previously, following the first meeting in 2019, the II° Universal Symposium on Soul and Economics in Solomeo was held during the reporting period. Internationally leading representatives from AI, technology, and science gathered again to discuss important topics between technology and humanism, including world-renowned entrepreneur and one of the recognized founders of generative AI, Reid Hoffman.
First half of 2024 performance by market:
- All European markets showed solid demand for high-end luxury goods, with a steady stream of American and Asian tourists visiting major “luxury capitals” and top-end holiday destinations.
- In the Americas, there was very positive momentum throughout North America, confirming the rising demand for premium and high-quality exclusive products. Brunello Cucinelli reported that this growth trend was most evident in major cities, holiday resorts, and provincial capitals. The number of customers at Brunello Cucinelli’s brand counters in luxury department stores in these areas increased significantly.
- The entire Asian market performed exceptionally well in the first half, with solid results across all markets, including China, Japan, Korea, and the Middle East. The performance”well confirmed the growth trend in the Chinese market, which is gradually becoming a very promising key market for our brand. We proudly note the increasing loyalty of local customers to the brand’s taste and identity, strengthening the connection and further affirming the uniqueness of Brunello Cucinelli’s style and its correct positioning in the high-end market.”
By channel:
- In the first half, the retail channel achieved positive results in all regions, with robust growth in the second quarter confirming the upward trend in the first half. As of June 30, 2024, Brunello Cucinelli had 126 retail boutiques, compared to 125 on December 31, 2023.
- Throughout the first half, the wholesale channel’s sales performance was outstanding. Besides the significant sales performance in the first half, the new arrangements and sell-out of the Spring/Summer 2024 collection in the second quarter also played a positive role. Brunello Cucinelli stated that the strong feedback from multi-brand partners for the Fall/Winter 2024 season, numerous delivery requests, and initial sell-outs also reflected consumer recognition. During the Pitti Uomo in Florence in June and the subsequent Milan Men’s Fashion Week, the Spring/Summer 2025 collection received positive reviews from professional media, who expected the wholesale channel’s sales activities to be very satisfactory.
Regarding board changes, on July 11, the Board of Directors announced the appointment of Camilla Cucinelli and Carolina Cucinelli as vice presidents of the board, following the approval of the Articles of Association amendment at the Extraordinary Shareholders’ Meeting on April 23, 2024.
Additionally, the Board appointed Katia Riva as the new non-executive director to replace independent non-executive director Emanuela Bonadiman, who resigned on June 13, 2024. She will serve until the next shareholders’ meeting. Thus, the Control and Risk Committee comprises independent directors Maria Cecilia La Manna (Chairman), Chiara Dorigotti, and Katia Riva, while the Remuneration and Nomination
Committee comprises independent directors Chiara Dorigotti (Chairman), Ramin Arani, and Katia Riva.
｜Source: Brunello Cucinelli brand official website and financial report
｜Image Credit: Brunello Cucinelli brand official website
｜Editor: Wang Jiaqi
