Piquadro, an esteemed Italian leather goods group, has recently reported a significant surge in revenue for the fiscal year ending on March 31, 2019. The group’s revenue saw a remarkable increase of 51.1%, skyrocketing to €147.5 million compared to the previous year’s €97.63 million. This impressive growth can be mainly attributed to the successful revival of the renowned French luxury leather goods label, Lancel, which Piquadro had acquired from the Richemont group in June 2018.
Driven by the astute leadership of Marco Palmieri, the president and CEO of Piquadro, the group swiftly restored Lancel to its former prestige within a short span after a period of decline. Lancel made a significant contribution to the group’s growth, generating revenue of €45.2 million. The commendable sales performance of Piquadro and The Bridge, the group’s other brands, also played a pivotal role in the overall revenue surge.
In terms of geographical distribution, Piquadro witnessed a 2.6% revenue growth globally, with the retail channel experiencing a notable 4.3% increase. The wholesale channel, which accounted for 58.3% of total revenue, showed signs of growth as well. The Bridge, another prominent brand under the Piquadro umbrella, demonstrated an impressive 11.6% revenue increase, with both retail and wholesale channels displaying encouraging growth.
Despite the positive revenue growth, the acquisition of Lancel did impact the group’s profitability, leading to EBITDA dropping to €0.83 million, primarily due to Lancel’s initial negative performance and acquisition costs. Nonetheless, adjusted EBITDA, which excludes non-recurring costs, showcased a positive growth of 11.4%.
Looking towards the future, Marco Palmieri remains bullish about the prospects of the Piquadro group. He envisions continued investments in the growth of the brands, with plans for new store openings for both Lancel and Piquadro. The group aims to surpass a revenue threshold of €160 million for the subsequent fiscal year ending on March 31, 2020.
With a consolidated net income of €34.48 million and a promising outlook, the Piquadro group stands poised for further expansion and success in the luxury leather goods market. By focusing on brand rejuvenation, strategic investments, and expanding retail footprint, Piquadro is well-positioned to perpetuate its upward trajectory in the industry.
For more information about Piquadro and its brands, visit their official website here.
To explore the exquisite range of Lancel products and collections, visit their official website here.
