Brunello Cucinelli Is On Track To Reach Over $1 Billion in Sales – Robb Reports

Brunello Cucinelli’s namesake label could soon hit the billion dollar mark.

The Italian fashion brand achieved sales of €919.5 million by the end of 2022, an increase of 29.1 percent over the previous year, according to Fashion Business. And the company may have more celebrations on the horizon: Strong market demand for the label’s offerings could now see Brunello Cucinelli reach €1 billion (about $1.07 billion) in revenue by 2023.

Last month, the brand projected year-over-year (YOY) sales would increase by 28 percent in 2022, and will grow by 12 percent this year. The 2023 sales forecast was unchanged on Monday, but the company revealed that sales will grow another 10 percent in 2024. The label has a 10-year growth plan to double its revenue from 2019 to 2028. This latest estimate means the goal could be met earlier if they played their cards. correctly.

“2022 is without a doubt our breakthrough year,” said Cucinelli Fashion Business. YOY sales for the brand grew by a staggering 40.5 percent in America last year, which the business reported as “high demand for luxury consolidation.” This includes the opening of stores and boutiques in the region and a healthy wholesale performance in luxury department stores. Brunello Cucinelli’s European sales increased 20.8 percent, thanks to the return of international tourism. Asia completes the market for top-performing brands, with a 28.1 percent increase that includes double-digit growth in China, due to the no-logo luxury trend.

Brunello Cucinelli wholesale also rose 18.4 percent, on top of a 36.6 percent increase in direct retail for 2022. The two offerings, the brand claimed in a statement, have allowed it to meet demand in major cities and resort destinations. Smart decisions made at the height of the pandemic also reportedly paid off, including not laying off staff members globally and keeping paychecks the same as they were in 2019. Other decisions like keeping surplus goods from closed boutiques for the Brunello Cucinelli for Humanity project and maintaining strong inventory levels as well. generate cash flow.

“Special credit goes to our Italian welfare state, which, by allowing us during this period of the pandemic not to lay off any employees and partially supporting us financially, has allowed us to maintain our production and business facilities at full strength,” said the brand. in a statement. “There is no doubt that in 2022 [global] the demand for luxury products has exceeded the supply, which for us and for many Italian companies, has brought huge profits. It will not be easy to fully restore world production facilities, so we think that maybe Italy can still benefit to some extent in 2023 as much as it has benefited in the last year.”

And it seems the luxury label will have even more to look forward to: In February, the luxury label will present its next menswear collection at Pitti Uomo in Milan. Cucinelli will later receive the Neiman Marcus Distinguished Service in the Field of Fashion Award at Paris Fashion Week in March for demonstrating outstanding innovation skills.

That sounds like a pretty sweet first quarter to us.