Brunello Cucinelli Presents the Hamlet of the Spirit

MILAN — Brunello Cucinelli is kicking off his presentation at Pitti Uomo with a bang. On Tuesday, the first day of the international men’s wear trade show in Florence, the company bearing the name of its founder released its preliminary 2019 revenues, which showed a 9.9 percent growth in the 12 months ended Dec. 31. Last year, revenues totaled 607.8 million euros, compared with 553 million euros at the end of December 2018, lifted by all geographic markets and distribution channels.

The company uncharacteristically posted the figures after the opening of the Bourse on Tuesday and by mid-morning, shares were up 7.5 percent to 34.18 euros.

Chairman and chief executive officer Brunello Cucinelli characterized 2019 as an “excellent” year for his luxury company.

In light of the gain in sales, Cucinelli said he expects “healthy, balanced and sustainable profits.” Given the “excellent sell-out” of the past fall collection, the “good orders intake” for the spring 2020 collection, and the “very favorable” start of the fall 2020 season, “we keep working with peace of mind and expect a 2020 of good growth in turnover, profits and image,” he added.

The group is to release final 2019 figures on March 11.

“We consider 2019 a wonderful year, one of the best in our history, and the first in our growth project with the goal of doubling turnover in 10 years,” the company said. “We have the concrete impression that the feeling around the brand is very, very positive: international press, large luxury department stores, multibrand clients and final-customers convey their enthusiasm to us sharing the values of our company, values that we try to live daily in Solomeo [where the company is based], which we love to call ‘Hamlet of the Spirit.'”

The company underscored the new initiatives introduced in 2019, which it believes were “fully consistent with the brand’s positioning and values. In particular, we are very happy with the results we are achieving with the ‘Sartoria Solomeo’ project, with which we have sought to respond to the male customers looking for a young and contemporary ‘sartorial’ look that does not sacrifice elegance and extreme refinement.”

Cucinelli last year also unveiled new children’s collections to “very positive orders.”

“We continue to believe in the great value of repairing, reusing and passing on our garments, thanks to the skillful hands of our seamstresses who are able to regenerate and give new life to garments worn out over time,” added the company.

In 2019, sales in Italy grew 1.9 percent to 89.9 million euros, representing 14.8 percent of the total. Revenues in Europe rose 12.9 percent to 184.9 million euros, accounting for 30.4 percent of the total.

Sales in the North American market were up 8.9 percent to 203.8 million euros, representing 33.5 percent of the total. “We are fully satisfied with the growth obtained, our relationships with the customers — both final and multibrand — and our presence in the market, with exclusive spaces in the monobrand and multibrand channels,” the company said. Coming soon is a boutique in the Meatpacking District in New York, considered a “very chic area, trendy and youthful, fully in line with the style of our products,” it added.

Revenues in China increased 14.7 percent to 63 million euros, accounting for 10.4 percent of the total. “We consider the performance in China to be significant, consistent with the long-term growth forecasted in our ‘Celestial Empire’ project. This market undoubtedly has a great potential, both for the monobrand and multibrand channels, and we would like to gradually seize these opportunities, maintaining brand’s prestige and allure,” the company said.

Sales in the rest of the world grew 12.3 percent to 66.2 million euros, representing 10.9 percent of the total.

The retail monobrand channel was up 14.6 percent to 339.5 million euros, accounting for 55.9 percent of the total. Like-for-like sales grew 4.2 percent.

As of Sept. 30, the company counted 106 boutiques compared to 100 at the end of December 2018.

The wholesale monobrand channel grew 7.7 percent to 32.5 million euros, accounting for 5.4 percent of the total. The network has 30 boutiques compared to 27 at the end of December 2018.

The wholesale multibrand channel was up 4.1 percent to 235.7 million euros, representing 38.8 percent of the total.

In line with the 2019-21 plan, the company invested approximately 53 million euros in 2019, compared with 45 million euros in 2018. Expenditures were mainly channeled to support selected openings and increases in some doors, contributing to the growth in luxury department stores, and the renewal and expansion of the brand’s showrooms. Other investments included those fueling production, logistics and digital IT.

The net financial position is equal to approximately 30 million euros, compared with 14.5 million at the end of December 2018 thanks to the positive cash flow generated by operating activities, the “sound management” of the commercial working capital, and the significant investments under way, the company noted.