MILAN — Brunello Cucinelli believes luxury and exclusivity are alive and well.
“My confidence in luxury continues to be very high,” said Cucinelli, executive chairman and creative director, as his namesake company on Thursday reported a 12.4 percent increase in revenues to 920.2 million euros for the first nine months of the year, compared with 818.4 million euros in the same period last year.
In the third quarter, sales rose 9.2 percent to 300 million euros.
“We see significant opportunities in the exclusive, true luxury market for our brand, driven by the appreciation for the style, exclusivity and craftsmanship embodied by our collections,” Cucinelli said during a conference call at the end of trading in Milan, where the company is publicly listed.
With chief executive officer Luca Lisandroni, Cucinelli underscored the “authentic relationship” developed with customers, necessary to stand out in the segment. “We can clearly feel the genuine trust our clients place in our work.”
Lisandroni said that wealthy customers are willing to spend and that the Cucinelli brand responds with its “authenticity and capacity to engage them.”
Based on the nine-month performance and the orders in place, Cucinelli confirmed expectations of 10 percent sales growth in 2024, as well as for 2025 and 2026, and a “slightly improving” operating profit for 2024 compared with 2023.
Balanced growth across markets and channels contributed to the increase in revenues in the nine months ended Sept. 30.
Sales in Italy rose 13.5 percent to 110.3 million euros, representing 11.9 percent of the total.
Revenues in Europe excluding Italy amounted to 340.3 million euros, up 8 percent and accounting for 37 percent of the total, lifted by business in main cities, resorts locations, local customers and tourists.
Sales in the Americas climbed 17.6 percent to 334.7 million euros, representing 36.4 percent of the total, positive in both channels.
“North America has always been a central geographical area for our brand, with a very loyal clientele that confirms the desire to buy exclusive and unique garments for their very high quality and impeccable craftsmanship,” Cucinelli said.
Revenues in Asia rose 12.2 percent to 245.2 million euros, accounting for 26.6 percent of the total, lifted by China, Japan, South Korea and the Middle East. “Sales in the Chinese market continue to be of great quality, with growing results also in the third quarter that we believe are closely connected with a mix of highly significant factors.
“Among these, we would like to highlight the positioning of our brand, the exclusive distribution within the country, the appreciation for the ready-to-wear offering of the highest craftsmanship and handiwork, and the taste of our collections, with the expectations and requests of local customers in line with our type of offering,” Cucinelli said.
Lisandroni admitted there had been a slowdown in traffic in Chinese malls, but said that a study about the growth of the company in the 2019-23 period showed that the contribution of Chinese customers amounted to 10 percent, while Americans and Europeans represented 50 percent and the Middle East and South Korea 25 percent of the total. “The future of our industry is not entirely dependent on the speed of China’s growth,” he said, citing “enormous opportunities” around the world, including Thailand, Vietnam, Indonesia and Saudi Arabia, which are all accelerating.
In the nine months, retail sales were up 13.3 percent to 578.7 million euros, accounting for 62.9 percent of the total.
As of Sept. 30, there were 128 boutiques, including a new flagship in Miami. In 2025, Cucinelli will open stores in Vancouver, at Macao’s Four Seasons, in Abu Dhabi and will expand the Vienna and Geneve boutiques. It will also open a branch in Mexico.
The wholesale channel registered revenues of 341.5 million euros, up 11 percent on last year. Cucinelli and Lisandroni expressed their confidence in multibrand stores, emphasizing their “creative freedom” in presenting the collections and their “judgment” on the designs. “We work with 400 multibrands globally and we are very positive about them.”
Cucinelli reported solid growth in digital sales, also linked to the new AI website, launched in mid-July after three years of study and work. Online sales account for between 6.5 and 7 percent of sales.
