Brunello Cucinelli grows at steady pace in first quarter 2019
Brunello Cucinelli is cruising at a steady pace in early 2019, having posted an 8.1% growth in the first quarter. The Italian luxury cashmere specialist, which is about to launch a children’s line, generated a revenue of €160.4 million between January and March this year. At constant exchange rates, the increase was 7.1%.
Brunello Cucinelli grew across all markets and sales channels, allowing its eponymous founder and CEO to display a certain amount of optimism. “Thanks to the fact that we are growing steadily and in balanced fashion, we are about to embark on our new childrenswear project with enthusiasm, respect and care. Seeing the excellent volume of orders we received for the Fall/Winter 2019, we are planning to reach our healthy growth objective of 8%,” said Cucinelli in a press release, as the group published its quarterly results.
The label's sales have notably continued to rise on overseas markets, which currently account for 82.3% of Brunello Cucinelli's total revenue. Starting from North America, Brunello Cucinelli's most important market - representing 28.9% of its total sales - which generated a revenue of €46.4 million, up 9.2% compared to the same period a year earlier.
Sales in Europe grew by 8.7% to €52.1 million, while revenue in Greater China rose by 12.7%, reaching €15.4 million. In Italy, the label confirmed its positive momentum, growing 4.2% in the first three months of the year and generating a revenue of €28.4 million. Domestic market sales were driven both by the local clientèle and by tourist purchases.
Brunello Cucinelli underlined the positive performance of its men’s tailoring atelier called ‘Sartoria di Solomeo’ [Solomeo is the Umbria hamlet where Brunello Cucinelli is based], which was introduced in the second half of 2018. The label is also counting on a positive reception for its childrenswear line, “a natural extension of our ready-to-wear range with a series of dedicated collections, which will première in the second part of the year,” stated Brunello Cucinelli in the press release.
In Q1 2019, Brunello Cucinelli's direct retail sales, through its 100 stores, increased by 8.5%, reaching €71.2 million. In franchised stores, sales instead declined by 4.4%, down to €11.1 million. This result was due to the conversion of four franchised stores into directly operated ones. In this channel, comparable sales were up 6.4%. Sales to multibrand retailers and department stores increased 9.8%, and were worth €71.1 million.
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