Lifted by growth in all its markets and at both its retail and wholesale divisions, Brunello Cucinelli SpA reported 2015 preliminary revenues of 414 million euros, or 455.4 million, up 16.3 percent compared with 355.9 million euros, or $473.3 million, in the previous year. At constant exchange, sales grew 9.5 percent.
Brunello Cucinelli, chairman and chief executive officer, said “2015 has come to an end reporting ‘excellent’ results in terms of revenues growth and, considering the quality of our sales, we are prone to believe that the same will also feature in profits. The image enjoyed by the brand worldwide is also excellent; the winter 2015 sell-out rate has been very positive and the spring 2016 collection sales are off to a really good start.”
Cucinelli continued: “We still perceive a powerful demand for very high-end apparel, expressing the Italian way of ‘dressing well’ and made with the intention of embodying the great values upon which we have built our business. In the light of these considerations, we envisage a ‘very positive’ 2016 with double-digit growth.”
In the 12 months ended Dec. 31, international markets represented 82.9 percent of total sales, gaining 19.4 percent compared with sales a year earlier.
Italy accounted for 17.1 percent of sales, increasing 3.7 percent to 71 million euros, or $78.1 million.
Last year, Europe, excluding Italy, accounted for 31.1 percent of total sales and was up 10.4 percent to 128.8 million euros, or $141.7 million. The region benefited from rising tourist flows and the company reported solid results achieved in all countries of the area, including Eastern Europe, Russia and the former U.S.S.R. states.
In North America, sales grew 27.5 percent to 156.6 million euros, or $172.2 million, representing 37.8 percent of total. The gain was boosted by a growing demand both local and tourist-driven and was positively affected by the exchange rate trend.
Sales in greater China gained 23.4 percent reaching 25.7 million euros, or $28.2 million, representing 6.2 percent of total.
In the rest of the world, revenues rose 18.2 percent to 31.9 million euros, or $35.1 million, representing 7.7 of total.
Globally, Brunello Cucinello’s retail channel increased 30 percent to 193 million euros, or $212.3 million, representing 46.6 percent of total. Like-for-like sales posted a 5.4 percent increase.
The direct monobrand network comprised 81 boutiques, compared with 71 units at the end of Dec. 2014. There were also 36 wholesale monobrand banners.
As of Dec. 31, net debt stood at 56 million euros, or $61.6 million, compared with 42.6 million euro, or $56.6 million, at the end of Dec. 2014, an increase the company said was related to the investment pattern and seasonality of the business.
Last year, the company ended an investment project cycle initiated in 2013, spending a total of approximately 120 million euros, or $132 million, mainly directed at building its retail network and extending its production plant in Italy’s Solomeo. Of this figure, approximately 40 million euros, or $44 million, were invested in 2015. The luxury firm is now working on strengthening its technical platform and presence in the digital world, with investments that will continue into 2016 as part of what is dubbed the “Great Internet Project.”
Dollar figures were converted from the euro at average exchange rates for the periods they refer to.
Final and approved figures for the year will be released on March 10.