MILAN — Newly public Brunello Cucinelli SpA reported a 36 percent rise in net profits to 7.2 million euros, or $9.4 million, in the first quarter ended March 31, compared with 5.3 million euros, or $7 million, in the same period last year.
Sales gained 17.1 percent to 77.6 million euros, or $101.6 million, compared with 66.3 million euros, or $86.8 million, last year.
Earnings before interest, taxes, depreciation and amortization climbed 27.6 percent to 12.9 million euros, or $16.9 million.
Dollar amounts have been converted at average exchange rates for the periods to which they refer.
The brand’s namesake founder said that “expectations for the year are good, our goal is a solid, sustainable and graceful growth.”
“The solid results achieved in the first quarter, both in terms of sales and margins, confirm the brand’s momentum at an international level,” said Cucinelli. “It seems there is a strong positive attitude towards our product, the way we present it and, as a consequence, the lifestyle that evokes a Made in Italy [product] of great quality, artisanal craftsmanship and, we hope, modernity.” Sales in Italy totaled 24 million euros, or $31.4 million, in the quarter, down 1.2 percent compared with the same period last year, and accounting for 30.9 percent of total revenues. Sales in other European markets grew 18 percent to 24.2 million euros, or $31.7 million. Revenues in the U.S. climbed 30.6 percent to 18 million euros, or $23.6 million, accounting for 23.2 percent of sales. In Greater China, sales rose 23.5 percent to 2.9 million euros, or $3.8 million, or 3.8 percent of total revenues.
The rest of the world grew 59.8 percent to 8.5 million euros, or $11.1 million, also lifted by “excellent results” in Japan and Korea, said the company.
All distribution channels saw growth in the period, especially at Brunello Cucinelli stores.
Sales at directly operated stores rose 53 percent (of which 18 percent to be attributed to the boutiques existing at the end of March last year) to 15.1 million euros, or $19.8 million, and accounting for 19.5 percent of total revenues. Franchised stores saw a 74.1 percent spike to sales of 10.6 million euros, or $13.8 million, accounting for 13.6 percent of total sales. As of March 31, Brunello Cucinelli stores totaled 38, up two units compared with the first quarter last year.
Wholesale sales totaled 52 million euros, or $68.1 million, up 3.2 percent compared with last year, and accounting for 66.9 percent of total revenues, compared with a 75.9 percent share last year.
On Thursday, shares closed down 1.41 percent to 10.50 euros, or $13.61 at current exchange.
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