Brunello Cucinelli

MILAN Brunello Cucinelli SpA shares closed down 6.57 percent to 27 euros on the Milan Stock Exchange on Wednesday following the decision by the namesake entrepreneur to sell 6 percent of his shares in the group a day earlier.

Through his company Fedone Srl, Cucinelli on Tuesday sold more than four million shares of the luxury group at 26 euros a share, for a total of around 106 million euros.

“The purpose of this transaction is to raise funds that may somehow allow my family and our foundation to continue that dream, always beloved, to contribute to ‘embellish the mankind,’ as was done with the realization of the ‘Project for Beauty,’ trying to support that great topic that has always illuminated mankind, which is to feel like ‘custodians of the creation’, combining a fair balance between ‘profit and giving back,’” said Cucinelli, chairman and chief executive officer of Fedone and of his namesake company.

Among the foundation’s initiatives are the “Theatre” and “The School of Arts and Crafts” built in Solomeo, the medieval hamlet near the Italian city of Perugia that Cucinelli restored and which is home to the company’s headquarters. The “Project for Beauty” consists of three neighboring parks to be built at the foot of Solomeo.

“We strongly reaffirm my will and that of my family to remain shareholders of the company in the very long term, maintaining the absolute majority of the shares,” said Cucinelli.

This stance, however, did not help the shares’ performance on the Bourse in Milan, where the company was publicly listed in 2012.

The placement was carried out through an accelerated book build offering.

As a result of the transaction, Fedone now holds 34.68 million shares of Brunello Cucinelli SpA, or a 51 percent stake.

As reported this week, the year 2017 marked a record for Brunello Cucinelli SpA, which for the first time exceeded sales of 500 million euros.

Reporting preliminary revenues on Monday, Cucinelli characterized last year as “a splendid year also in terms of the image enjoyed by our brand worldwide; moreover, considering the good quality of our sales, we also expect excellent profits.” These are due to be released on March 7.

For the 12 months ended Dec. 31, the company reported preliminary consolidated sales of 503.6 million euros, up 10.4 percent compared with 456 million euros in the previous year.