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Investments deliver solid results for Brunello Cucinelli

By Wendela van den Broek

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The Italian luxury fashion label reported continued growth in all markets for the first nine months of 2015, with net income up 1.2 percent to 25.7 million euros on revenues of 317.6 million euros.

Thanks to the investment plan implemented in 2013, Brunello Cucinelli saw sales increase 14.5 percent (+9.4 percent at constant exchange rates). Like-for-like sales rose 5.3 percent. The company, known for its fine cashmere, invested in increased retail space with eight new monobrand stores and the conversion of the business in Japan to direct operations.

Conversely, the development of its retail activities led to in an increase in operating costs, which was partly affected by currency fluctuations and caused mainly by increased rent and personnel costs. Operating costs rose from 42.7 percent to 46.8 percent.

Geographically, North America - the company’s biggest market with 36 percent of net revenues- posted the biggest jump in sales of 25.4 percent. Its second largest market, Europe, saw sales rise 6.8 percent, while Italy (with 18.9 percent of total revenues) reported a sales increase of 1.9 percent, which the company called an ‘encouraging growth trend’.

Greater China (representing 5.7 percent of total revenues) recorded a sales increase of 18.3 percent thanks mainly to renewed spending by affluent Chinese customers. The Rest of the World reported the most significant rise in sales of 33.6 percent, attributed mainly to the conversion of the business in Japan to retail management on 1st September 2014. With the basis for sales comparison in Japan stabilising per 1st September 2015, the company expects the growth trend to ‘normalise in the coming quarters’.

In a statement, chairman and CEO Brunello Cucinelli said that based on the ‘excellent’ Spring Summer 2016 sales campaign results and all-round positive feedback, the company expects ‘a very positive 2016 and three-year period, with double-digit gracious growth’.

Brunello Cucinelli