MILAN — The luxury world’s outlook may appear a bit patchy for some, but Brunello Cucinelli SpA is bucking the trend.
Boosted by international growth, the Italian luxury firm saw net profits rise 17.8 percent to 15.6 million euros, or $21.3 million, in the six months ended June 30, compared with 13.3 million euros, or $17.4 million, in the first half of 2013.
As reported, the company posted revenues of 175.8 million euros, or $239 million, up 11.6 percent compared with 157.6 million euros, or $206.4 million, in the same period last year.
Cucinelli continued to grow around the world, with exports gaining 15 percent in the period, accounting for 79.4 percent of total sales.
Dollar amounts are converted at average exchange for the periods to which they refer.
The company’s namesake chairman and chief executive officer said he believes this “really special performance” will be confirmed in the second half of the year, with double-digit growth in profit and revenues. The entrepreneur told WWD that he attributed the expansion of the brand to a “return of production in Italy, which is synonymous with creativity and manufacturing capacity. There is an increasing and unwavering distinction between quality products made by hand, expensive and recognizable, and those that are lower priced and more industrial.”
Cucinelli said he feels that customers are “returning to a rapport in the use of things. [Ancient Greek philosopher] Epicurus said men need to heal the soul with serenity and the body with needs. We have now gone beyond consumerism — a word I don’t like. We are returning to the truth of things, a respect for nature, and a more balanced use of things, triggered by a reawakening of ideologies.” Cucinelli mentioned a revived interest in Italy, the arts, spiritual life and politics. He was also “very positive” for 2015, expecting double-digit growth next year — a future he sees “beautiful and rosy,” based on the orders for both the men’s and women’s collections.
Staying true to his belief in the need to invest in local production, Cucinelli said investments relating to production and logistics, which reached 8.9 million euros, or $12.2 million, in the period, include expenditure incurred for extending the Solomeo manufacturing facility. “We have already moved here, we are very happy and fully operative,” he said.
As of June 30, the company invested a total of 22.4 million euros, or $30.6 million. This included commercial investments in the growth of its boutique network for a total of 10.2 million euros, or $14 million. In the first half, the company also initiated a three-year investment project relating to the strengthening and development of its IT infrastructure platform, which will include resources to support the brand’s digital presence in line with its exclusive positioning.
In the first half, revenues in Italy inched up 0.2 percent to 36.3 million euros, or $49.3 million, representing 20.6 percent of the total, while sales in the North American market rose 18.2 percent to 55.4 million euros, or $75.3 million, representing 31.5 percent of the total. Europe gained 9.5 percent to 60 million euros, or $81.6 million, accounting for 34.2 percent of the total. Greater China grew 43.5 percent to 10.4 million euros, or $14.1 million, representing 5.9 percent of total sales. At the end of June, the group counted 19 boutiques in Greater China.
Sales in the Rest of the World rose 10.3 percent to 13.7 million euros, or $18.6 million, representing 7.8 percent of the total.
At the end of June, Cucinelli had 102 boutiques, of which 65 were directly operated, compared with 92 units at the end of June last year.
The three wholesale monobrand boutiques currently existing in Japan will be converted to directly operated starting Monday. Likewise, the dedicated spaces in the 13 luxury department stores in Japan will also become part of the retail channel.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)