Brunello Cucinelli, the prestigious luxury brand known for its exquisite cashmere pieces, faced a slight downturn in revenue during the first quarter of 2020, largely attributed to the ongoing Covid-19 crisis. Despite years of impressive growth, the Italian fashion house reported a 2.3% decrease in revenue, amounting to €156.7 million compared to the previous year. This decline was felt across most markets, with the exception of North America and the rest of the world, which saw sales increase by 9.5% and 6.6% respectively.
The closure of Brunello Cucinelli’s monobrand stores in response to lockdown measures significantly impacted sales, particularly in key regions like China and Italy. Sales in China tumbled by 27.1%, while Italy experienced a 13.9% decrease. However, there are positive signs emerging in China as the health crisis in the country stabilizes.
Despite the challenges posed by the pandemic, Brunello Cucinelli remains resilient, thanks in part to its strong foothold in the wholesale channel, which contributes 50% of the brand’s revenue. While the direct retail channel, which includes 107 monobrand stores, saw a 7.2% drop in revenue, franchised stores remained steady, and sales to multibrand clients and department stores even saw a slight increase.
Brunello Cucinelli, the visionary founder, and CEO of the eponymous brand, stressed the importance of adaptability in the face of the current crisis. He recognized the revenue achieved in the first quarter of 2019 and expressed optimism about significant wholesale orders for the upcoming Fall/Winter season. Despite the hurdles of 2020, the company is confident in its ability to navigate the challenges posed by the pandemic, leveraging its robust production structure, strong supplier relationships, and solid financial standing.
In response to the Covid-19 crisis, Brunello Cucinelli has postponed its Annual General Meeting and opted out of distributing a dividend for the 2019 financial year. Cucinelli views the global shifts brought about by the crisis as an opportunity for transformation and growth, aiming to focus on managing the current year while developing strategies for the future. The brand remains steadfast in its commitment to thriving in the post-Covid landscape by exploring innovative approaches and reinforcing its core values of quality and craftsmanship.
For more information on Brunello Cucinelli and its collections, visit their official website here.
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