MILAN — All geographic markets helped lift Brunello Cucinelli SpA revenues by 10.7 percent to 243.3 million euros in the first six months of the year, compared with 219.8 million euros in the same period last year.
“We are particularly pleased with our company’s performance in the first half of 2017; we believe that the results achieved in terms of growth are noteworthy both for their consistency and their compliance with expectations,” said chairman and chief executive officer Brunello Cucinelli. The entrepreneur underscored that growth came from all markets and across all channels and that, “considering the excellent quality of sales, we believe that profitability, too, will improve with a similar pattern. If we indeed take a look at the general context and at the very good start of the second half of the year — and in particular the satisfying performance of the spring-summer 2018 sales campaign for men — we feel pretty confident that the full-year 2017 will deliver double-digit growth in terms of both sales and margins.”
The company released its first-half performance at the end of trading on Thursday in Milan, where it is publicly listed.
In the period ended June 30, sales in Italy grew 5.9 percent to 41.8 million euros, representing 17.2 percent of total sales. In January, the company opened its largest boutique, located in Milan’s Via Montenapoleone, with the intent to reproduce the imagery and atmosphere of the brand’s headquarters at the restored medieval village of Solomeo in central Italy.
Revenues in Europe rose 9.9 percent to 75.2 million euros, accounting for 30.9 percent of total sales, lifted by local and top-end tourist demand. The company added that “young new customers are playing an increasingly important role” in the performance.
North America gained 9.4 percent to 83.6 million euros, representing 34.4 percent of total sales. “An element which has always contributed to our success in all the sales spaces is visual merchandising, with a dedicated organizational structure that aims to add value to the presentation of the collections in all the exhibition areas, both in the direct and multibrand channels, as well as in the luxury department stores,” said the company.
Greater China showed a growth of 34.6 percent, reaching sales of 18.4 million euros, accounting for 7.5 percent of total sales. The company underscored its goal of maintaining “the allure and exclusivity” of the brand and its distribution, targeting a more sophisticated customer. “We are also witnessing a gradual increase in tourism of our Chinese and Asian customers who spend time shopping especially in the fashion and luxury capitals of the world; thanks to the variety and range of our collections, shopping abroad is also prompted by the fact that products showcased at shops in Paris or New York at a certain time of the year may not be in available at boutiques in Shanghai and Beijing.” The multibrand channel is being gradually developed in China.
Sales in the Rest of the World area increased 11.4 percent to 24.3 million euros.
The retail channel registered a 21.7 percent increase in sales to 121.1 million euros, representing 49.8 percent of the total. Like-for-like sales in the first 26 weeks of the year (between Jan. 1 and July 3) showed an increase of 4 percent. As of June 30, the company counted 91 directly operated stores, with just one opening over the past 12 months, and four stores in Moscow being converted from the wholesale monobrand channel to the retail channel as of March 1.
The results also benefited from the agreement signed on March 13 for the transformation to direct operations of five shop-in-shops in the Holt Renfrew luxury department stores in Canada.
The wholesale monobrand channel was down 20.8 percent to 17.6 million euros, reflecting the change from wholesale to the direct channel of the brand’s online boutique and four units in Moscow. Brunello Cucinelli’s online site was launched in the first quarter and is no longer managed by the Yoox Net-a-porter Group, but by the company in-house. It offers a “philosophical” area that describes the brand’s story.
The wholesale monobrand network consisted of 32 boutiques at the end of June, unchanged in the last 12 months, excluding the four conversions of boutiques to the retail channel.
Complete financial figures for the first half of the year will be released on Aug. 29.