In a remarkable display of success, Brunello Cucinelli is on track to achieve a record-breaking revenue of €553 million by the end of 2018. This represents an impressive increase of 8.1% over the previous year at current exchange rates, and a staggering 10.7% growth at constant exchange rates. The brand’s founder, widely known as the king of cashmere, describes this year as ‘splendid’ in terms of revenue and the enhancement of the brand’s global image.
One of the key drivers behind this exceptional growth is the Greater China region, which now accounts for 10% of Brunello Cucinelli’s total revenue. Sales in Greater China reached €54.8 million in 2018, marking a significant 28.5% surge from the previous year. Additionally, positive growth was experienced across all regions, with double-digit increases in other parts of the world, Europe, North America, and the Italian domestic market.
When considering the distribution channels, wholesale revenues for Brunello Cucinelli climbed to €226.5 million in 2018, reflecting a 9% growth from the previous year. Monobrand stores also saw substantial success, generating €296.3 million in revenue, with a notable 19.4% increase in the monobrand wholesale channel. Throughout the year, the brand opened two new monobrand stores and converted four franchised stores into directly operated shops, bringing the total number of directly owned stores to 100 worldwide.
To drive further growth and success, Brunello Cucinelli allocated €45 million towards strategic investments in 2018, focusing on key areas such as sales, manufacturing, logistics, and IT/digital. Notable investments included the acquisition of the remaining 38% of the capital of the brand’s Russian subsidiary, a move aimed at gaining direct control of a market with significant potential.
Looking towards 2019, Brunello Cucinelli remains optimistic about the future, buoyed by strong winter sell-out performance and substantial orders for the upcoming Spring/Summer 2019 collection. With a steady trajectory of growth anticipated for the year ahead, the brand is poised for continued success.
Since its inception in 1978 in Solomeo, Italy, Brunello Cucinelli has grown its presence to over 60 countries, with 127 monobrand stores and 650 multibrand retailers. Upholding a commitment to quality and excellence, the brand continues to attract luxury fashion enthusiasts worldwide.
Sources:
1. Business of Fashion
2. Reuters
