Brunello Cucinelli Presents the Hamlet of the Spirit

MILAN Brunello Cucinelli SpA closed 2018 in “a splendid manner,” said the namesake entrepreneur on Monday, reporting 2018 preliminary revenues of 553 million euros, up 8.1 percent from 511.7 million euros in 2017. At constant exchange, sales grew 10.7 percent.

The company marked its 40th anniversary in 2018, “one of the finest in the history of the business,” said the company in a statement issued after trading hours in Milan, where it is publicly listed, citing the presentation in September of its “Hamlet of the Spirit” in Solomeo, Italy, comprising the latest restorations of the town where Cucinelli is based, thanks to the support of the Brunello and Federica Cucinelli Foundation.

In the 12 months ended Dec. 31, all markets and distribution channels helped the performance of the Italian luxury company, starting from its local market, which saw a 4.2 percent gain in sales, which reached 88.3 million euros, accounting for 16 percent of the total.

“We continue to support, believe in and invest in our beloved Italy, perceiving the great value this represents at a world level for the country’s creativity, quality and craftsmanship,” said Cucinelli, who has repeatedly touted the importance of a strong business in Italy for the brand’s image globally. Local spending and tourists, including a growing number of Chinese, helped the performance.

“On the basis of these convictions and the more-than-positive sellout of the past winter, along with the actual quantity of spring 2019 orders received, we expect another year ahead of gracious growth in line with 2018.”

In 2018, sales in Europe rose 8.5 percent to 163.7 million euros, representing 29.6 percent of the total, lifted by domestic and international customers.

Revenues in North America grew 3.9 percent to 187.2 million euros, accounting for 33.9 percent of the total, lifted by the monobrand and multibrand channels and increasing tourist flows as well as a solid rise in local demand.

Sales in Greater China jumped 28.5 percent to 54.8 million euros, representing 9.9 percent of the total.

Mainland China confirmed the very positive trend of recent months, said the company. “Our current presence, limited and at the same time exclusive, supports the huge growth potential of the Chinese market, which we are endeavoring to take advantage of in a gradual manner and without compromising the prestige of the offer and distribution. We see considerable opportunities for business for us in this market over the next few decades.”

Revenues in the Rest of the World area grew 10.7 percent to 59 million euros, representing 10.7 percent of the total, with solid results in the Middle East and Japan, in particular.

The retail monobrand channel was up 6.3 percent, reaching sales of 296.3 million euros, representing 53.6 percent of the total.

Like-for-like sales grew 3.5 percent. As of Dec. 31, the company counted 100 boutiques. Two boutiques were opened during the year to which four conversions from the wholesale monobrand channel were added.

Sales at the wholesale monobrand channel increased 19.4 percent to 30.2 million euros, through a network of 27 boutiques, including an important opening at the prestigious Dubai Mall.

The wholesale multibrand channel saw a 9 percent increase in sales to 226.5 million euros, representing 41 percent of the total.

In 2018, the company invested 45 million euros, directed toward the commercial channel and production, logistics and IT/digital.

In addition, the company purchased a minority interest in the Russian subsidiary on June 5 at a price of 6.5 million euros, which allowed Cucinelli to have full control (from the previous 62 percent) of the company operating in the Russian market, “which we continue to believe has great prospects,” noted the statement.

Full 2018 figures will be released on March 14.