Brunello Cucinelli 2023 Sales Exceed 1.1B Euros
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MILAN – In Brunello Cucinelli’s lingo, 2023 was “particularly significant and noble” for his namesake brand, which financially translated into revenues that exceeded 1.1 billion euros, the highest in his company’s history. The milestone target was met five years sooner than expected, based on Cucinelli’s initial 2019 to 2028 10-year plan, which saw the company doubling its sales by 2028.
Another breakthrough was seen in the fourth quarter of 2023, which had the best results ever in absolute value, with sales of 321 million euros, up 15.6 percent year-on-year. This was even more significant given the basis of comparison of the fourth quarter in 2022, when the company reported 32 percent growth and an increase in the wholesale channel of 53 percent.
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Cucinelli, commenting on the preliminary figures for 2023, said that “given the excellent quality of sales, we are expecting a very good profit. We are also honored by the image our Casa di Moda conveys to the world of luxury craftsmanship and lifestyle.”
The strong spring 2024 orders and “excellent start” of 2024 “result in a most optimistic outlook for the first half of this year. In view of all this, we are confirming our great confidence for this year, where we envisage a gracious, comfortable and healthy growth of around 10 percent,” said Cucinelli, the firm’s executive chairman and creative director, in a statement issued Monday at the close of trading in Milan, where the company is publicly listed. He also stood by his forecast for 10 percent growth in 2025.
In the 12 months ended Dec. 31, revenues rose 23.9 percent to 1.14 billion euros compared with 919.7 million euros in 2022.
The performance was attributed to the brand’s exclusivity, craftsmanship and the balance between the different sales channels and geographical markets.
At constant exchange rates, retail sales rose 30.2 percent to 746.6 million euros, accounting for 65.5 percent of the total, lifted by a strong like-for-like performance and sellouts of the spring and fall 2023 collections.
As of Dec. 31, Cucinelli had 125 retail boutiques and 49 hard shops.
Wholesale sales were up 13.4 percent to 392.7 million euros.
In 2023, sales in Italy rose 25.3 percent to 128.7 million euros, representing 11.3 percent of the total.
At constant exchange rates, revenues in Europe, excluding Italy, were up 13.5 percent to 299.3 million euros, representing 26.3 percent of the total. Europe including Italy represented 37.6 percent of the total.
Sales in the Americas rose 20.8 percent to 404.4 million euros, accounting for 35.5 percent of the total, showing strong demand in all major cities on both coasts of the country, in resort locations and in second-tier cities.
In October, Saks and Cucinelli celebrated 25 years of partnership with an exclusive capsule collection, a visual takeover of Saks Fifth Avenue’s New York flagship, a private dinner in New York City and digital content across Saks’ channels.
In tandem with the capsule launch and the New York flagship takeover, Saks launched Cucinelli’s first fragrances, licensed to EuroItalia, as the exclusive wholesale partner in the U.S.
Cucinelli also hosted “Una Serata Italiana” (an Italian evening) in Los Angeles at Chateau Marmont, which brought out the likes of Oprah Winfrey, Jennifer Lopez, Ava DuVernay and Demi Moore, to name a few.
In 2023, sales in Asia soared 40.4 percent to 306.8 million euros, representing 26.9 percent of the total.
Cucinelli has said it is key to offer the same product globally, without dedicated collections depending on the country. “There must be one single image around the world.”
The clear and consistent positioning helped the brand grow not only in China but also in the Middle East, South Korea and Japan.
In 2023, the company invested around 78 million euros in the commercial, digital, technological and production/logistics areas.
As per a three-year investment plan, the company is expanding its factory in Solomeo and building a new men’s tailoring factory in Penne, in the central region of Abruzzo, historically a production hub that specializes in sartorial menswear. It will be completed in spring 2025 and will occupy an area of 48,600 square feet, employing around 350 artisans.
Pending the completion of the new plant, operations started in a leased factory with 75 full-time workers, with the goal being 100 employees by the end of 2024.
As of Dec. 31, net debt remained equal compared to the previous year, amounting to about 7 million euros.
The Cucinelli company last month was included in the main index of Italian stock markets (FTSE MIB index), 11 years after its IPO. Shares have risen 10 percent since the company went public.
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