MILAN — Expansion of its retail network and a 52.5 percent jump in sales in China helped Brunello Cucinelli SpA report a 15.4 percent rise in preliminary revenues to 322.5 million euros, or $425.7 million, in the year ended Dec. 31. This compares with revenues of 279.3 million euros, or $357.5 million, in 2012.
This story first appeared in the January 17, 2014 issue of WWD. Subscribe Today.
Chairman and chief executive officer Brunello Cucinelli said orders for spring and a strong reception of the brand’s fall men’s collection should result in double-digit revenue and profit growth this year.
Sales in the U.S. rose 23.2 percent to 109.1 million euros, or $144 million, accounting for 33.8 percent of total revenues. Sales in Europe climbed 20 percent to 107.9 million euros, or $142.4 million, representing 33.5 percent of the total. In 2013, the Italian luxury firm opened units in Barcelona, Munich and Copenhagen, and in the emerging markets of Istanbul; Almaty, Kazakhstan, and Ekaterinburg, Russia, and took direct control of two stores in London, which were previously part of the wholesale monobrand network.
Revenues in Greater China rose 52.5 percent to 15.7 million euros, or $20.7 million, accounting for 4.9 percent of the total. As of Dec. 31, the company counted 18 boutiques in Greater China.
Sales in the rest of the world grew 5.7 percent to 23.1 million euros, or $30.5 million, and accounted for 7.2 percent of revenues. Boutiques in Tokyo; Doha, Qatar, and Riyadh, Saudi Arabia, opened last year.
Sales in Italy dropped 2.9 percent to 66.7 million euros, or $88 million, accounting for 20.7 percent of the total, mainly driven by tourists in leading Italian cities and resorts.
Dollar amounts have been converted at average exchange for the periods to which they refer.
Cucinelli said retailers from the U.S., Europe and Japan have been showing “very strong demand for very high-quality” in both women’s and men’s wear. “The presentation of the new men’s suits collection [at men’s show Pitti Uomo earlier this month] has stirred great interest, which is evidence of a comeback of suits also among young customers. Following years of strong investments, we can now say that the company has laid strong foundations to work comfortably in the years to come solely and uniquely under the Brunello Cucinelli brand.”
In the year, the retail channel posted a 50 percent gain to 115.4 million euros, or $152.3 million, accounting for 35.8 percent of the total.
The wholesale channel grew 1.2 percent to 33.1 million euros, or $43.7 million, representing 10.3 percent of the total, affected by six conversions to the retail monobrand network.
The multibrand sales channel rose 2.5 percent to 173.9 million euros, or $229.5 million, representing 53.9 percent of the total.