In 2023, Brunello Cucinelli’s eponymous brand witnessed an extraordinary and illustrious year, etching a significant chapter in its history. The financial triumph of the year saw revenues surging past the remarkable threshold of 1.1 billion euros, marking a historic pinnacle for the company. What makes this achievement truly remarkable is the fact that it materialized five years earlier than projected, far exceeding the ambitious targets outlined in Cucinelli’s 2019-2028 10-year plan, which initially aimed to double the company’s sales by 2028.

One of the standout moments of 2023 was the fourth quarter, which delivered unprecedented results. Sales reached an astounding 321 million euros, signifying an impressive year-on-year increase of 15.6 percent. These figures are even more striking when compared to the already impressive growth experienced in the fourth quarter of 2022, which boasted a 32 percent increase and an astonishing 53 percent surge in the wholesale channel.

Reflecting on the preliminary figures for 2023, Brunello Cucinelli expressed optimism about the company’s profitability, driven by the exceptional quality of sales. Furthermore, he took immense pride in the image that Casa di Moda, the brand’s house of fashion, has conveyed to the world of luxury craftsmanship and lifestyle.

The spring of 2024 brought with it strong orders and a promising start to the year, setting the stage for an exceedingly optimistic outlook for the first half of the year. In light of these developments, Cucinelli confidently reaffirmed the company’s growth prospects, projecting an expected increase of around 10 percent for the year. This optimism extended to the following year, with a steadfast forecast of 10 percent growth in 2025.

For the twelve months ending on December 31, 2023, the company recorded a remarkable 23.9 percent increase in revenues, reaching a total of 1.14 billion euros, compared to 919.7 million euros in 2022. This exceptional performance can be attributed to the brand’s exclusivity, unwavering dedication to craftsmanship, and astute management of diverse sales channels and geographic markets.

Considering constant exchange rates, retail sales surged impressively by 30.2 percent, totaling 746.6 million euros, accounting for a significant 65.5 percent of the total revenue. This remarkable growth was fueled by strong like-for-like performance and rapid sellouts of the spring and fall 2023 collections. As of December 31, 2023, the company boasted an extensive network of 125 retail boutiques and 49 hard shops.

Wholesale sales also displayed a notable uptick, recording a 13.4 percent increase, amounting to 392.7 million euros.

When analyzing regional performance, Italy experienced a remarkable upswing in sales, rising by 25.3 percent to 128.7 million euros, representing 11.3 percent of the total. In Europe, excluding Italy, revenues at constant exchange rates witnessed a solid 13.5 percent increase, reaching 299.3 million euros, making up a substantial 26.3 percent of the total. When factoring in Italy, Europe’s share expanded to 37.6 percent of the total.

The Americas also witnessed impressive sales growth, with a 20.8 percent increase, resulting in 404.4 million euros in revenue, and accounting for 35.5 percent of the total. This robust demand was evident in major cities along both coasts, resort destinations, and second-tier urban centers.

Strategic collaborations and initiatives played a pivotal role in the brand’s success story. In October, Saks Fifth Avenue and Cucinelli celebrated their enduring 25-year partnership with an exclusive capsule collection, a visually captivating takeover of Saks Fifth Avenue’s flagship store in New York, private dinners, and the creation of digital content. Cucinelli’s foray into fragrances, in collaboration with EuroItalia, was another noteworthy development.

Cucinelli’s global strategy, emphasizing a consistent product offering worldwide, proved instrumental in the brand’s expansion, not only in China but also in the Middle East, South Korea, and Japan. The brand’s clear and uniform positioning resonated strongly with discerning consumers in these regions.

In 2023, the company made substantial investments of approximately 78 million euros in various domains, including commercial, digital, technological, and production/logistics areas. These investments are part of a three-year plan that encompasses the expansion of the Solomeo factory and the construction of a new men’s tailoring facility in Penne, located in the central region of Abruzzo. This historical production hub, specializing in sartorial menswear, is set to be completed in spring 2025, spanning an expansive 48,600 square feet and employing approximately 350 skilled artisans. In the interim, operations have commenced in a leased factory, staffed by 75 full-time workers, with plans to expand to 100 employees by the end of 2024.

As of December 31, the company’s net debt remained unchanged compared to the previous year, amounting to approximately 7 million euros.

The culmination of these achievements was marked by the inclusion of the Cucinelli company in the FTSE MIB index of Italian stock markets, a momentous milestone achieved 11 years after its initial IPO, with shares having experienced a 10 percent ascent since going public.