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Brunello Cucinelli to close 2018 with €553 million revenue, forecasts 2019 growth
Another year, 2018, is set to finish with a “judicious” rate of growth for Brunello Cucinelli, as the eponymous founder of the Italian luxury label likes to define it. Net revenue for the year is expected to be worth €553 million, equivalent to an 8.1% rise over 2017 at current exchange rates (+10.7% at constant exchange rates).
“Another year has ended in ‘splendid’ fashion, both in terms of revenue and of the brand’s global image worldwide,” said the king of cashmere, Cucinelli.
Greater China - which accounts for 10% of total revenue - continues to drive the growth of Brunello Cucinelli, which generated sales worth €54.8 million in the Asian country in 2018, up 28.5% over the €42.7 million recorded in 2017. In general, all regions are performing well, with Europe up 8.5%, North America up 3.9% and the Italian domestic market up 4.2%, while the rest of the world posted double-digit growth (+10.7%, with €59 million).
Looking at the results by distribution channel, Brunello Cucinelli generated wholesale revenues worth €226.5 million (+9% over 2017); its monobrand stores produced a revenue of €296.3 million, while the monobrand wholesale channel posted a remarkable 19.4% increase.
In the course of 2018, Brunello Cucinelli opened two new monobrand stores and converted four franchised ones into directly owned shops, bringing the total of its directly operated shops worldwide to 100.
In 2018, the group invested on several fronts, from sales to manufacturing, logistics and IT/digital, for a total of €45 million. Of these, €6.5 million were spent to buy out the remaining 38% of the capital of Brunello Cucinelli's Russian subsidiary, with the objective of taking direct control of a market which holds huge potential for the label.
The forecasts for 2019 are also very positive, thanks to “the more than satisfactory sell-out performance in the winter and the significant amount of orders already received for the Spring/Summer 2019,” said Cucinelli, who is looking forward to “another year of ‘judicious’ growth, in line with 2018.”
Brunello Cucinelli was founded in 1978 in the medieval town of Solomeo, just outside Perugia in central Italy, and is now distributed in over 60 countries via 127 monobrand stores and 650 multibrand retailers.
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