Brunello Cucinelli doubles its profit in the first half of the year
Things are looking up at Brunello Cucinelli. After a great first half of the year, the Italian luxury brand specializing in cashmere has reaffirmed its goals for 2022, targeting an annual growth of 15% (+35 compared to its pre-pandemic level in 2019), as well as for 2023, where it expects to close the year on a 10% increase. It has also confirmed its intention to reach €1 billion in turnover by 2024.
The company's net profit soared by 131.4% between January and June, from €21.9 million at June 30, 2021 to €50.6 million a year later. Operating profit (Ebit) also more than doubled, jumping from €25.3 million to €57.8 million over the period. Gross operating profit (Ebitda) rose by 48.8 % to €120 million and represented 28.9% of total revenues.
Brunello Cucinelli's sales in the first half of 2022 reached €415.3 million, up 32.4% at current exchange rates (+28.3% at constant exchange rates). Sales rose by 52.6% in the Americas, 27.2% in Asia, 20.7% in Europe and 19.9% in Italy. Sales growth was also recorded in its two main sales channels (+47.1% in the retail channel and +16% in the wholesale channel).
The Italian group continued to invest €36.6 million in the first six months of the year, of which €15.05 million was injected in March into the acquisition of a 43% stake in the long-established spinning mill Cariaggi Lanificio, its main supplier of cashmere yarns for its knitwear.
"For 2022, we fully confirm expectations for an absolute rebalancing of margins to pre-pandemic 'normalcy' levels, in line with the results of the first six months of the year. We remain convinced of the importance of planning investments for the current year, which have contributed to the results achieved as of June 30, 2022, and will continue to improve the growth trajectory of the company and the brand, while preserving its exclusivity and style," the company commented in a statement.
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