Brunello Cucinelli, the executive chairman and creative director of his luxury brand, stated that luxury and exclusivity remain vibrant and thriving in today’s market.
“My confidence in the luxury sector is as firm as ever,” Cucinelli remarked following the announcement of his company’s impressive financial results on Thursday. For the first nine months of the year, Cucinelli’s company saw a remarkable revenue growth of 12.4 percent, reaching 920.2 million euros, compared to 818.4 million euros during the same timeframe last year.
In the third quarter alone, sales surged by 9.2 percent, translating to 300 million euros. Cucinelli expressed optimism about the future during a conference call after the trading day in Milan, highlighting the potential that lies in the exclusive luxury market for his brand. “We see significant opportunities fueled by the appreciation for the style, exclusivity, and craftsmanship that our collections represent,” he said.
During the call, Cucinelli, alongside CEO Luca Lisandroni, emphasized the importance of cultivating an “authentic relationship” with customers. They believe this connection is crucial for differentiating the brand in a competitive market. “We can genuinely feel the trust our clients have placed in our work,” Cucinelli noted.
Lisandroni explained that affluent consumers are increasingly willing to invest their money in luxury goods, and that the Cucinelli brand answers this demand with its commitment to authenticity and its ability to engage with customers effectively. Based on both their strong performance thus far and existing orders, Cucinelli has set ambitious expectations for the future, projecting 10 percent sales growth for each of the next three years, alongside a modest increase in operating profits for 2024 compared to 2023.
The revenue increase observed in the nine months leading up to September 30 is attributed to balanced growth across various markets and sales channels. In Italy, sales increased by 13.5 percent, resulting in revenues of 110.3 million euros, which now stands at 11.9 percent of total sales. Additionally, revenues from Europe, excluding Italy, reached 340.3 million euros—an 8 percent increase—accounting for 37 percent of the total, largely driven by business in major cities, resort locations, and tourism.
Sales in the Americas saw a notable rise as well, climbing 17.6 percent to 334.7 million euros, which constitutes 36.4 percent of overall revenues for the company. Cucinelli stated, “North America has always been a key market for our brand, comprising a dedicated clientele eager to purchase exclusive, high-quality garments distinguished by exceptional craftsmanship.”
In Asia, revenues increased by 12.2 percent to 245.2 million euros, contributing 26.6 percent to the total, with notable growth in important markets such as China, Japan, South Korea, and the Middle East. Cucinelli highlighted the high quality of sales in China, attributing this trend to a combination of several significant factors including the strategic positioning of the brand, selective distribution within the country, and the high-caliber craftsmanship of their ready-to-wear offerings. “Sales in the Chinese market are closely connected to our brand’s strong positioning and the expectations of local consumers,” he said.
Lisandroni also acknowledged a decline in customer traffic within Chinese malls but pointed out that a comprehensive study covering 2019-2023 indicated that Chinese customers accounted for approximately 10 percent of their total sales, with American and European customers together comprising 50 percent and customers from the Middle East and South Korea accounting for 25 percent. “The future of our industry isn’t solely reliant on how quickly China’s market rebounds,” he noted, emphasizing the “enormous opportunities” present in other international markets such as Thailand, Vietnam, Indonesia, and Saudi Arabia.
In terms of retail performance, the brand reported an impressive 13.3 percent increase in retail sales, reaching 578.7 million euros, which now constitutes 62.9 percent of total sales. As of September 30, the company operated 128 boutiques, including the recent addition of a flagship store in Miami. Plans for future expansion include new stores in Vancouver, Macao’s Four Seasons, and Abu Dhabi, as well as updates to their locations in Vienna and Geneva and a new presence in Mexico by 2025.
The wholesale channel also performed well, generating 341.5 million euros in revenues, reflecting an 11 percent increase over the previous year. Both Cucinelli and Lisandroni expressed their strong belief in the potential of multibrand retail partners, emphasizing the “creative freedom” these stores offer in showcasing their collections and providing insight on design choices. “We collaborate with 400 multibrand retailers worldwide, and we are very optimistic about this segment,” they shared.
Furthermore, Cucinelli experienced substantial growth in digital sales, which can be partly attributed to the launch of their new AI-driven website in mid-July, after three years of development. Currently, online sales account for approximately 6.5 to 7 percent of the brand’s overall sales, further solidifying their commitment to adapting to contemporary retail trends.
