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MILAN — Growth in all markets except Italy and gains at its retail and wholesale channels helped Brunello Cucinelli SpA close the first nine months of the year with a 25.3 percent increase in net profits, excluding nonrecurring costs associated with its initial public offering in April.
This story first appeared in the November 13, 2012 issue of WWD. Subscribe Today.
In the period ended Sept. 30, earnings reached 21.3 million euros, or $27.2 million. Including the IPO expenses, the Italian luxury company posted a net profit of 17 million euros, or $21.7 million, in line with the same period last year.
Sales grew 15.2 percent to 220.2 million euros, or $281.8 million.
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Brunello Cucinelli expressed satisfaction with the performance of the company, which is listed on the Milan Stock Exchange. “Since the end of the year is very close, we can say that everything seems to point to truly special 2012 full-year results for our company,” said Cucinelli. “The great 2011-2015 investment plan, whose purpose is our company’s growth in the so-called absolute Made in Italy luxury segment worldwide, is bearing fruit.”
Dollar amounts have been converted at average exchange for the periods to which they refer.
In the first nine months of the year, exports grew 25.3 percent and accounted for 72.9 percent of total sales.
Revenues in the U.S. rose 28 percent to 62.1 million euros, or $79.5 million. Europe showed a 17.8 percent gain to 69.1 million euros, or $88.4 million.
Sales in Greater China were up 30.9 percent to 9.6 million euros, or $12.3 million, driven by boutique openings in Shanghai, Macao and a second opening in Hong Kong, and accounting for 4.4 percent of sales. Revenues in the rest of the world area climbed 45.6 percent, boosted by a strong performance in Korea and Japan. Sales in Italy decreased 5.4 percent to 59.6 million euros, or $76.3 million, slowed down by the multibrand channel, but lifted by tourists in the company’s own network of boutiques in main cities and resorts.
Sales derived from directly owned stores rose 43.4 percent to 50.1 million euros, or $64.1 million. Wholesale revenues grew 36 percent to 29.5 million euros, or $37.7 million.
The store-opening plan continued in line with the company’s growth projects and between the end of Sept. 31, 2011, and the end of September this year, Cucinelli opened 11 directly operated stores with five units opened by third-party operators. As of Sept. 30, the brand had 74 stores.
In China, following an agreement reached between the group and Sichuan Lessin Department Stores Ltd., six stores, comprising units in Chengdu, Shanghai, Dalian and Harbin and two boutiques in Shenyang, are run as directly operated stores. A new directly operated venue has also been opened in Tianjin.
Six directly operated boutiques are expected to open by the end of the year, in cities including Aspen, Berlin and Venice, together with the opening of a second banner in Shanghai. The company said agreements for 12 additional locations have already been signed.
Through the cash generated by the IPO, the company slashed its net debt, which, as of Sept. 30, stood at 14.4 million euros, or $18.4 million, compared with 59.6 million euros, or $76.3 million, at the end of September last year.