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“Company plans to double revenue by 2030”

by Dubaiforum

Italian luxury brand, Brunello Cucinelli, reported a significant increase in revenues in the 12 months ending December 31. The company’s revenues surged by 23.9 percent to 1.14 billion euros, compared to 919.7 million euros in the previous year. Operating profit also saw a substantial rise of 39.4 percent to 187.4 million euros, up from 134.4 million euros in the previous year. Earnings before interest, taxes, depreciation, and amortization increased by 22.5 percent to 326.3 million euros, with a margin of 28.6 percent on sales.

In terms of regional sales performance, Italy experienced a strong growth of 25.4 percent to 128.8 million euros, accounting for 11.3 percent of the total revenue. Sales in Europe, excluding Italy, climbed by 13.5 percent to 299.3 million euros, representing 26.3 percent of the total. The Americas saw a 20.8 percent increase to 404.4 million euros, making up 35.5 percent of the total revenue. Meanwhile, sales in Asia soared by 40.4 percent to 306.8 million euros, contributing 26.9 percent to the total revenue.

CEO Luca Lisandroni expressed optimism during an analyst call, highlighting the company’s growth in “balanced markets.” He expressed confidence in the organic growth and expanded development in China, emphasizing a focus on gradual, long-term expansion. Lisandroni also noted a positive outlook on America, highlighting the growth in tourism and luxury consumption outside major cities.

Cucinelli emphasized the importance of offering a consistent product globally, without regional variations. Retail sales spiked by 30.3 percent to 746.8 million euros, accounting for 65.5 percent of total revenue, driven by strong performance across spring and fall 2023 collections.

The company’s investment strategy included communication investments of 78.9 million euros and annual investments totaling 79.1 million euros, primarily focusing on artisan production, the distribution network, and brand image enhancement. Commercial investments of 31.3 million euros targeted new store openings and showroom renovations, while 47.8 million euros were allocated for industrial facilities and information system upgrades.

Brunello Cucinelli also announced plans to expand its factory in Solomeo and construct a new men’s tailoring factory in Penne, Abruzzo. Set to be completed by spring 2025, the new facility will create job opportunities and boost production capacity.

As of December 31, the company’s net debt decreased to 6.1 million euros, from 7.1 million euros in the previous year. Additionally, Cucinelli’s daughters, Camilla and Carolina, were appointed as vice presidents, further solidifying the brand’s leadership.

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