Brunello Cucinelli starts 2013 with a bang

By

Dominique Muret

Published
May 17, 2013

Brunello Cucinelli began 2013 in the best of circumstances. The company specialized in luxury cashmere and listed on the Milan Stock Exchange since last year, reported very promising results in the first three months of 2013, with a net profit of 8.2 million euros (+14.8%) and sales of 88.8 million euros (14.4%). Gross operating profit (EBITDA) was 15.3 million euros (+18.6%).

"This first quarter highlights a good start to 2013, a robust and serene beginning. The very positive results achieved augur well for the year in terms of corporate and product image. The major investments we are making and the targets achieved lead us to envisage a full year characterised by a 'gracious' double-digit growth," said Brunello Cucinelli, CEO and founder of the company located in Solomeo, Italy near Perugia.

The increase in revenue is especially due to the strong performance of foreign sales, which rose 21.6% in the first quarter of 2013, representing 73.4% of total sales versus 69.1% for the first three months of 2012. Business in North American grew by 26.5% to 22.8 million euros. In Europe, sales increased by 18.3% to 28.6 million euros, thanks in particular to strong performances in Russia and Eastern Europe.

In Greater China, sales jumped 69.3% to 5 million euros, thanks to Brunello Cucinelli assuming major control of its own retail distribution for this market. In Italy, the brand was down 1.6% with a turnover of 23.6 million euros. However, the company was able to limit the damage in its particularly sluggish domestic market.

Sales through its own retail channel have exploded, jumping 75.7% to 26.5 million euros. The brand's retail network has meanwhile increased from 63 stores on March 31, 2012 to 85 one year later.