MILAN — Local and international growth at both its retail and wholesale channels fueled a 9.7 percent increase in revenues at Brunello Cucinelli SpA in the first half of the year. In the six months ended June 30, the Italian luxury fashion group reported sales of 219.8 million euros, or $246.1 million, compared with 200.3 million euros, or $234.3 million, in the same period last year.
“The first half of 2016 has ended reporting very, very positive results representing the constant, sound and balanced growth we are so fond of. We feel there is a very strong demand for high quality, very exclusive products in all markets, manufactured in our splendid Italy,” said chairman and chief executive officer Brunello Cucinelli. In particular, the entrepreneur said the men’s spring orders were “going very well.” At men’s wear trade show Pitti Uomo in June, the company introduced the “Leisure Set” capsule collection, in keeping with the brand’s aesthetic combining luxury fabrics and details with a relaxed mood. The new offering included suits, crafted from linen, as well as a blend of linen, cotton and silk that feature a jacket and two different pair of pants — one in a traditional sartorial style and the other in a drawstring jogger or a cargo version with maxi pockets.
Commenting on the first-half results on Thursday, released after the end of trading in Milan, where the company is publicly listed, Cucinelli concluded: “We were very pleased to see that our growth forecasts were confirmed for Italy as well. We therefore envisage a very positive future also for 2017 and at the same time we would like to confirm our growth project for the current year.”
Sales in Italy were up 6.9 percent to 39.5 million euros, or $44.2 million,representing 18 percent of total revenues, led by tourists in the country’s main cities and resorts.
Sales in Europe rose 8.3 percent to 68.4 million euros, or $76.6 million, accounting for 31.1 percent of total revenues.
Revenues in the North American market increased 9.7 percent to 76.4 million euros, or $85.5 million, representing 34.8 percent of total. The performance was driven by Brunello Cucinelli’s monobrand and multibrand channels, with luxury department stores reporting “significant growth trends, devoting increasingly prestigious exclusive spaces, where final customers can breathe the atmosphere, taste and lifestyle of the company and the hamlet of Solomeo,” said the firm, which is based in the medieval hamlet in central Italy that Cucinelli restored.
Sales in Greater China rose 15 percent to 13.7 million euros, or $15.3 million, representing 6.2 percent of total. The performance was driven by the existing boutique network, which has not changed in the last 12 months. The company underscored that the solid performance was registered in both mainland China and Hong Kong, “supported by local customers, who are gradually evolving toward a sophisticated and contemporary ‘luxury ready-to-wear’ taste,” as well as by tourists in exclusive locations.
The Rest of the World area registered a 17.1 percent increase to 21.8 million euros, or $24.4 million, accounting for 9.9 percent of total.
The retail monobrand channel posted a 17.4 percent increase to 99.6 million euros, or $111.5 million, representing 45.3 percent of total, lifted by the opening of five stores in 2016 and an increase in sell-outs.
The wholesale monobrand channel saw sales grow 1.2 percent to 22.2 million euros, or $24.8 million, representing 10.1 percent of the total.
The multibrand channel grew 4.8 percent to 98.1 million euros, or $109.8 million, representing 44.6 percent of the total.
As of June 30, the company counted 122 banners, compared with 115 at the end of June last year. In April, the company opened its first monobrand boutique in the Middle East in Dubai’s Mall of the Emirates in a partnership with the Al Tayer Group. The 1,800-square-foot unit sits in a newly renovated zone dedicated to luxury fashion on the first floor of the mall.
Complete financial results will be released on Aug. 25.