- Prachi Singh |
Brunello Cucinelli, announcing its preliminary consolidated results for the first half of 2015 said that the group posted net revenues of 200.3 million euros (216.9 million dollars), an increase of 13.9 percent or 9.3 percent at constant exchange rates.
North American market posted a rise of 25.8 percent in revenues, representing 34.8 percent of the total. Sales increased in both the direct channel and the wholesale multi-brand channel. Growth in the direct channel was significant, with the increase in sales in existing boutiques driven by key sell-outs, as was the positive contribution made by the five openings which have taken place over the past 12 months. There were 21 boutiques in the mono-brand network at June 30, 2015.
Commenting on the results, Brunello Cucinelli, Chairman and CEO, said, “The first half of this year has ended with excellent results. Generally speaking, we have the impression that a true “awakening” is taking place, from the ethical, civil, cultural, moral, spiritual and economic point of view (especially in our Italy).”
Revenues in the European market increased by 5.3 percent, representing 31.6 percent of the total. Sales on the European market confirmed the solidity of demand coming from both local customers and international tourists. Sales posted increased results in existing spaces, accompanied by the positive contribution made by the five selected openings of the first six months of 2015. The results of sales in Russia were also positive. The direct mono-brand network consisted of 26 boutiques at June 30, 2015, while the number of boutiques in the wholesale mono-brand network reached 20. Revenues in Greater China rose by 14.5 percent, maintaining a limited proportion of 5.9 percent of total. Revenue performance saw growth taking place in both Mainland China and the other areas of Greater China, including Hong Kong. Taking Greater China as a whole, there were 19 mono-brand boutiques in the total network.
Rest of the World sales increased by 36 percent, representing 9.3 percent of the total. Sales dynamics were affected by the conversion of the business in Japan to directly operated stores from September 1, 2014, which explains the acceleration in growth performance over the past three months. There were 12 mono-brand boutiques at June 30, 2015, with the only opening over the past 12 months taking place in Singapore. Italian market saw sales rising by 1.8 percent, representing 18.4 percent of total revenues. The Italian market has confirmed the positive growth of the past few months, owing to the performance achieved by the mono-brand and multi-brand boutiques in the country. There were 13 boutiques in the direct mono-brand network at June 30, 2015, while the wholesale mono-brand network channel remained unchanged with four boutiques.
Retail mono-brand channel sales increased by 36 percent to reach 42.3 percent of the total. The network of direct mono-brand consisted of 79 boutiques, after 11 net openings and the three conversions in Japan from the wholesale mono-brand channel. A positive contribution to sales arrived from the transfer of the 13 hard shops in Japan to directly operated stores.
Wholesale mono-brand channel revenues, 11 percent of the total, represented a rise of 0.6 percent. This result was affected by the conversions to the direct channel; excluding these, sales in the wholesale mono-brand channel increased by 4.2 percent. The monobrand boutique network consisted of 36 boutiques, after three conversions to the direct channel and two openings taking place over the past 12 months. Multibrand sales channel posted an increase in sales of 2.2 percent.