Brunello Cucinelli targets €1 billion in revenue, launches junior line
In 2018, Italian luxury label Brunello Cucinelli further improved its sales and profitability, in the year marking its 40th anniversary, recording a revenue of €533 million. The label has also announced the launch of its first junior ready-to-wear line for boys and girls aged 4-14, scheduled for the second half of 2019. Contacted by FashionNetwork.com, Brunello Cucinelli said that the junior collection debuting later in the year will only be a taster of the full line, whose launch is planned for the Spring/Summer 2020.
In the meantime, Brunello Cucinelli continues to post exceptional profitability figures: in 2018, EBITDA rose by 8.8% to €95.1 million, margin grew from 17% to 17.2%, and normalised earnings rose 9.4% to €46 million. The dividend proposed by the board is €0.30 per share.
Brunello Cucinelli also indicated that, including the tax benefits accruing from the Italian government’s ‘Patent Box’ measures, favouring companies that invest in their own intellectual and industrial property - amounting for the label to about €5 million in 2018 and €10.4 million in 2017, as the sum of the tax benefits for the years 2015, 2016 and 2017 - net income was €51 million, compared to €52.2 million in 2017. In 2018, the label's net financial position stood at €14.5 million, slightly below the €15.7 million figure recorded in 2017.
Brunello Cucinelli’s revenue grew also in like-for-like terms (up 3.5% over 2017), as the label’s sell-out was excellent and its price mix had a positive impact, “enabling [Brunello Cucinelli] to absorb both the rise in operating costs [up 7.8% to €270.2 million] stemming from the label's new initiatives, and the communication investments designed to boost the brand's exclusivity, in the physical retail and e-tail channels alike,” stated Brunello Cucinelli in the press release.
Since 2012, when Brunello Cucinelli was listed on the stock exchange, it has doubled its revenue, topping the symbolic €500 million mark in 2017.
In the next 10 years, the goal of the Italian luxury label, which has given worldwide renown to the hamlet of Solomeo near Perugia, where its headquarters are based, is to reach a revenue of €1 billion.
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