SUMMER DEAL: In a vote of confidence in business in North America, on July 29 Brunello Cucinelli SpA took full control of its American and Canadian subsidiaries.
The Italian fashion group bought 30 percent of Brunello Cucinelli USA Retail LLC through the subsidiary Brunello Cucinelli USA Inc., paying $4.5 million on signing the deal and raising its stake to 100 percent.
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That same day, the parent company purchased 30 percent of Brunello Cucinelli Canada Ltd. for $2.2 million, also paid on signing the transaction.
The shares were acquired from Massimo Caronna, who has worked with the Italian entrepreneur for more than two decades, helping to develop the brand’s business in America. Caronna remains president of Cucinelli in the region.
As reported, Brunello Cucinelli revenues in the first half of 2019 climbed 8.1 percent to 291.4 million euros, compared with 269.5 million euros last year, boosted by all markets and distribution channels.
In the period, revenues in North America rose 9 percent to 94.1 million euros, accounting for 32.3 percent of the total, lifted by local and top-end tourism in both channels. Cucinelli has often emphasized the value of working with top department stores in the U.S.
“This is a very good moment for us, there is a shift toward a taste in men’s and women’s wear that is very suitable to what we do — less garish, more chic and understated, in line with our nature,” touted Cucinelli when commenting on the company’s results for the first six months ended June 30. “Customers tell us we are a beacon.”
This confidence allows Cucinelli to trumpet expectations to double his company’s sales over the next 10 years, “serenely” forecasting a “particularly positive 2019 with revenues increasing in line with our long-term expectations,” an 8 percent annual growth, and “healthy” and rising profits.