Brunello Cucinelli, the renowned Italian luxury brand, has seen a remarkable surge in growth during the first half of this year. Its profits have doubled compared to the same period last year, setting the stage for ambitious goals in the coming years. The company aims to achieve an annual growth rate of 15% by 2022, which would result in a remarkable 35% increase from its pre-pandemic levels in 2019. Looking further ahead, Brunello Cucinelli expects a 10% growth in 2023 and envisions reaching a turnover of €1 billion by 2024.

The impressive performance in the first half of 2022 is reflected in the financial numbers. Net profit soared by an astounding 131.4%, reaching €50.6 million compared to €21.9 million in the previous year. Operating profit also more than doubled, jumping from €25.3 million to €57.8 million during the same period. Brunello Cucinelli’s gross operating profit rose by 48.8% to €120 million, accounting for 28.9% of the brand’s total revenues.

Sales figures are equally impressive. Brunello Cucinelli achieved a remarkable sales growth of 32.4% in the first half of 2022, reaching €415.3 million at current exchange rates. At constant exchange rates, the increase stood at 28.3%. The Americas experienced the highest sales growth, with a remarkable 52.6% increase, followed by Asia with a 27.2% increase, Europe with a 20.7% increase, and Italy with a 19.9% increase. Both the retail and wholesale channels contributed to sales growth, with retail sales increasing by 47.1% and wholesale sales by 16%.

Investments remain a key aspect of Brunello Cucinelli’s growth strategy. The company allocated €36.6 million to various investments during the first six months of the year. Of note, €15.05 million was used to acquire a 43% stake in Cariaggi Lanificio, a spinning mill that serves as the brand’s primary supplier of cashmere yarns for its knitwear.

With such strong results in the first half of the year, Brunello Cucinelli expresses confidence in achieving a rebalancing of margins to pre-pandemic levels for the remainder of 2022. The company emphasizes the significance of planned investments in fueling its growth trajectory while maintaining its exclusivity and distinctive style.

Useful links:
@Brunello Cucinelli Official Website
@Reuters Article on Brunello Cucinelli’s Growth Target