MILAN — Brunello Cucinelli SpA is heading to Pitti Uomo on an upbeat note. A day ahead of the international men’s wear show’s inauguration, the Italian fashion group posted its preliminary 2016 figures, which showed growth in all geographical markets and distribution channels.
In the 12 months ended Dec. 31, revenues rose 10.1 percent to 456 million euros, or $501.6 million, compared with 414.2 million euros, or $460 million, at the end of December the previous year. At constant exchange, sales rose 10.4 percent.
“Another splendid year for our industry has just ended with double-digit revenue growth and a very agreeable image of our brand at universal level, in our view. Considering the quality of sales, we also expect the same trend for profits, too,” said chairman and chief executive officer Brunello Cucinelli. “The excellent result of the sellout for winter 2016 and the stellar sales campaign for summer 2017 augur well for the current year, with a healthy, double-digit growth of both revenues and profit.”
Revenues in Italy gained 7.3 percent to 76.2 million euros, or $83.8 million, representing 16.7 percent of the total.
Sales outside Italy grew 10.7 percent. In Europe, revenues rose 5.8 percent to 136.4 million euros, or $150 million, representing 29.9 percent of the total.
Revenues in North America were up 7.1 percent to 167.6 million euros, or $184.3 million, accounting for 36.8 percent of the total.
Significant growth in revenues continued in Greater China, with sales climbing 21.8 percent to reach 31.4 million euros, or $34.5 million, representing 6.9 percent of the total.
The company credited “considerable” growth in mainland China for the performance and said the sales trend was also positive in the other markets of the region, such as Hong Kong, Taiwan and Macau, with customers gradually increasing their purchases not only locally but also when making trips to the main European and American cities, as well as when touring Japan and South Korea.
Sales in the Rest of the World area climbed 39.4 percent to 44.4 million euros, or $48.8 million, representing 9.7 percent of the total.
The increase takes into account an improvement recorded in Japan, driven by both local and tourist shopping. A flagship in Ginza, which opened in September 2015, contributed to the performance, as well as additional floor space in luxury department stores, “with a presence rising to 15 hard shops in prestigious spaces with a gradually increasing size situated in the most exclusive positions.” The company also highlighted the “decisively positive trend” in the Far East (mainly in South Korea) and the Middle East, benefiting from the opening of a boutique in Dubai.
Revenues at the group’s monobrand stores rose 17.1 percent to 226.3 million euros, or $249 million, accounting for 49.6 percent of the total. Like-for-like sales grew 3.9 percent.
A positive contribution was made by the five openings made in 2016 and all concentrated in the first six months of the year, which took the network of direct stores to 86.
The wholesale monobrand channel saw a 2 percent gain to 34.2 million euros, or $37.6 million, representing 8.1 percent of the total.
The overall network was unchanged over the past 12 months, standing at 36 boutiques.
The total number of boutiques in the monobrand channel rose to 122 from 117 as of the end of December 2015, and unchanged in the second half of the year.
The multibrand channel reported a 4.2 percent gain to 195.5 million euros, or $215 million, accounting for 42.9 percent of the total.
Capital expenditures totaled about 30 million euros, or $33 million, completing the cycle of significant investments started in 2013, which totaled 150 million euros, or $165 million, over a four-year period. In particular, the investments were channeled into the opening of boutiques, the continuing development of the technological platform and the management of the group’s presence in the digital world.
As of Dec. 31, net debt stood at about 51 million euros, or $56.1 million, compared with 56.4 million euros, or $62.6 million, at the end of December 2015.
Dollar figures were converted from the euro at average exchange rates for the periods in question.
Final and complete figures will be released on March 9.