Italian luxury label Brunello Cucinelli has reported impressive financial results for the first half of 2021. The company achieved a net revenue of €313.8 million, marking a 7.7% increase at current exchange rates compared to the same period in 2019. The growth was even more significant at constant rates, with a 10% rise compared to 2019 and a remarkable 57.7% increase compared to 2020.
In the second quarter of 2021, sales reached €149.2 million, a notable 13.8% increase compared to the second quarter of 2019. The label’s half-year EBITDA reached €80.6 million, accounting for 25.7% of revenue. This is a significant improvement compared to the previous year when EBITDA was negative at minus €3.4 million. Similarly, EBIT increased to €25.3 million, or 8.1% of revenue, compared to a loss of €53.3 million in the first half of 2020.
Net income for the first half of 2021 was €21.9 million, which accounted for 7% of revenue. This is a significant turnaround from the €47.7 million loss reported in the same period last year and a slight decrease from the €25 million net income in the first half of 2019.
Brunello Cucinelli pointed out that comparing the first half of 2021 to the first half of 2020, which was heavily impacted by the pandemic, has limited relevance. However, it is important to consider the effects of the ongoing pandemic and the success of various commercial initiatives and retail expansion policies implemented in the first half of 2021 when analyzing the results.
Despite the challenging environment, Brunello Cucinelli continued with its investment plan, allocating €29.9 million in the first half of 2021. The company’s net financial debt decreased to €96.3 million, compared to €136.5 million in June 2020.
Brunello Cucinelli’s Executive President and Creative Director, Brunello Cucinelli, expressed satisfaction with the results, stating that the Fall/Winter 2021 sales campaign had a promising start. The brand’s popularity can be attributed to its unique style and its efforts to connect with local communities and humanity as a whole. The company also reported excellent order levels for the Spring/Summer 2022 collections.
Based on these positive developments, Brunello Cucinelli predicts a strong revenue growth of approximately 20% for the current year. Looking ahead to 2022, the company anticipates a return to a healthy 10% growth rate.
Overall, Brunello Cucinelli’s financial performance in the first half of 2021 demonstrates resilience and adaptability in the face of challenging market conditions. The brand’s strategic investments and focus on connecting with consumers have contributed to its strong performance and provide a promising outlook for the future.
Useful Links:
1. Brunello Cucinelli Official Website
2. Inside Brunello Cucinelli’s Unique Retail Experience
