Italian model Brunello Cucinelli defied the broader luxurious slowdown in 2023 due to its high-end positioning and powerful vacation buying and selling, reporting a 23.9 per cent leap in full-year gross sales to a document €1.14 billion. It has surpassed its €1 billion gross sales goal 5 years forward of schedule.
The fourth quarter of 2023 (ended 31 December) was the very best within the model’s historical past by way of absolute worth, with revenues of €321 million, up 15.6 per cent year-on-year. It additionally confirmed that it expects gross sales to develop 10 per cent in 2024, which — whereas a slower price than final 12 months — nonetheless places it forward of the broader luxurious items sector (forecast to develop by round 4 per cent, per Bain).
“One other 12 months that we regard as significantly important and noble for the model has ended, with a 23.9 per cent improve in turnover and, given the wonderful high quality of gross sales, we predict an excellent revenue,” stated Brunello Cucinelli, govt chairman and artistic director of his namesake model, in an announcement. He added that its Spring/Summer season 2024 assortment has seen an “wonderful begin”.
Indicators that the post-pandemic luxurious spending increase was working out of steam grew to become obvious when firms reported their third-quarter gross sales final October. Nevertheless, manufacturers with a give attention to rich buyers relatively than aspirational spenders, resembling Brunello Cucinelli, Zegna and Hermès, have largely bucked the pattern.
Deutsche Financial institution VP of fairness analysis Matt Garland and analyst Shwetha Ramachandran famous that Brunello Cucinelli’s document outcomes might additionally replicate “a broader resilience in luxurious spending” than anticipated on the finish of the 12 months. It will develop into clearer when luxurious group Richemont reviews its outcomes on 18 January.
Brunello Cucinelli, which is thought for its high-quality craftsmanship and quiet luxurious aesthetic, stated its give attention to exclusivity and wealthier prospects had been drivers of success in 2023. The model gained the Neiman Marcus Trend Award in March and GQ Designer of the 12 months award in December.
Progress was recorded throughout all markets in 2023. Europe, which accounts for 37.6 per cent of gross sales, grew 16.8 per cent to €428.1 million. Americas, which account for 35.5 per cent of gross sales, had been up 20.8 per cent to €404.4 million and Brunello Cucinelli famous demand was robust throughout all main cities and coasts.
Gross sales in Asia, which represents 26.9 per cent of the overall and is a rising space of curiosity for the model, grew 40.4 per cent to €306.8 million. It additionally highlighted booming demand within the Center East, South Korea and Japan as alternatives for future development.
Wholesale channels (which characterize 34.5 per cent of gross sales) grew 13.4 per cent, and retail channels grew 30.2 per cent. “Undoubtedly, 2023 confirmed the centrality of bodily retail: on the similar time, digital retail now represents a multi-dimensional issue inextricably interconnected with the bodily channel, by which the interpretation of the model’s values [and] id [are] being built-in an increasing number of carefully,” the model stated in its assertion.
The corporate invested round €78 million this 12 months in industrial, digital, technological and manufacturing fields, and expects to deepen its investments in its manufacturing facility in Solomeo and a brand new males’s tailoring manufacturing facility in Penne in Italy’s Abruzzo over the subsequent three years.
