MILAN — Higher sales around the world helped Brunello Cucinelli SpA post preliminary 2014 revenues of 355.8 million euros, or $469.6 million at average exchange, up 10.3 percent compared with the previous year.
“The year that has just gone by has been a pleasing one for our company, a year in which our intentions and our expectations have been confirmed as to both constant growth on international markets and a return to rising figures in Italy as well,” said chairman and chief executive officer Brunello Cucinelli. “These results originated from the positioning of our product, which is already widely recognized as belonging to the absolute luxury segment: an artisanal, modern product displaying exclusive style and quality.”
In light of spring orders for 2015, and final sell-out rates for fall 2014, Cucinelli was “convinced that this year 2015 might be just as special; we forecast double-digit growth in terms of both revenues and margins, but a gracious growth, as usual.” Cucinelli underscored the relevance to showcase the brand’s new products at men’s wear trade show Pitti Immagine, starts Tuesday.
“We are as confident and positive also when we look beyond, towards the years to come. We are firmly convinced that a business model that combines ongoing care for product quality and respect for the people and the community enabling us to manufacture such products is key to keep growing soundly in the long term, too. Our tree branches out to the world, but our roots keep growing deeply into our soil, a source of
nourishment and inspiration; and all this happens in the interest of all our stakeholders,shareholders and co-workers.”
The company is publicly listed on the Italian Stock Exchange.
Final figures for the year ended 2014 will be examined and approved by the board on March 10.
In the 12 months ended Dec. 31, the Italian company saw sales in international markets, which account for 80.7 percent of revenues, gain12.3 percent.
Sales in North America were up 12.7 percent to 122.9 million euros, or $162.2 million, representing 34.5 percent of total revenues. The company credited increased sell-outs in existing boutiques and the opening of new stores in cities including Atlanta and San Francisco.
Europe sales rose 8.2 percent to 116.7 million euros, or $154 million, representing 32.8 percent of total sales, and were boosted by top-end tourism. Despite the geo-political situation, performance in Russia was described as “particularly encouraging, where the demand for ‘exclusive’ luxury goods remains solid.”
Greater China was up 32.7 percent to 20.9 million euros, or $27.6 million, accounting for 5.9 percent of total revenues, and boosted by the Asian customer’s increased attention to highly crafted products and exclusivity of distribution, forfeiting logoed products.
In the Rest of the World, revenues rose 15.9 percent to 26.8 million euros, or $35.3 million, representing 7.5 percent of total.
Italy also rose 2.8 percent, with sales reaching 68.5 million euros, or $90.4 million, accounting for 19.3 percent of sales, and boosted by top end tourism.
As of Dec. 31, net debt stood at around 43 million euros, or $56.7 million. Last year, the company’s capital expenditures totaled around 40 million euros, or $52.8 million, the third of a multi-year investment plan in production and logistics. The important project related to the extension of the industrial building in Solomeo, Italy, was completed in 2014, while investments continued in new boutiques, in the enlargement of a number of sales floor spaces in these stores and in several spaces in luxury department stores. Cucinelli began a project to strengthen and develop the company’ s technological platform in 2014. This plan, which will continue for the next three years, also includes investments to support the digital
presence of the brand.