The Brand Predicts Further Growth in the New Year
Italian luxury brand Brunello Cucinelli concludes 2024 on a prosperous note, with anticipations for a positive 2025 as well. The brand reported an increase in its preliminary 2024 revenues by 12.2 percent, equating to 1.28 billion euros as compared to 1.14 billion euros in 2023.
This financial boon was reinforced particularly by excellent performance in the final weeks of 2024, surpassing Cucinelli’s own forecast of an 11 to 12 percent increment. For example, sales in the last quarter amounted to 358 million euros, denoting an 11.6 percent increase year on year, described as the “best result ever in absolute terms”.
Brunello Cucinelli, who serves as the executive chairman and creative director of his eponymous company, indicated that due to the calibre of the sales, he predicted that “very strong profits” would be revealed for 2024. He is also estimating a revenue growth of around 10 percent in the coming years, 2025 and 2026, with an intent to double 2023’s turnover by 2030.
Cucinelli defined 2024 as “a particularly meaningful year for consolidating our style and identity”. He attributes the success to the recognition and trust of customers in the brand’s exclusivity and craftsmanship, as well as the acknowledged pleasant atmosphere within the brand’s stores.
In 2024, the company invested around 108 million euros in innovating its stores and showrooms, which impacted sales by 8.5 percent. The expansion of the company’s headquarters and new production facilities in Italy are included in these investments.
Cucinelli expects a return to a more balanced life for society, with an emphasis on the concept of ‘tempus novum’ or ‘new times’. He referred to the launch of the internal ‘project for the soul’ as a supportive measure during trying times.
By region, sales in Italy rose by 9.3 percent, European revenues saw a 5.4 percent hike. Sales in America climbed by a notable 17.8 percent, while Asian sales went up by 12.6 percent with marked growth across multiple regions including China, Japan, South Korea, as well as the Middle East.
Retail revenues went up by 14 percent, accounting for 66.6 percent of total sales, and as of the end of 2024, the brand boasts 130 boutiques and 50 hard shops. Meanwhile, the central strategy of maintaining a strong wholesale channel saw sales increase of 8.8 percent, depicting 33.4 percent of total sales.
The luxury brand concluded the year with a net debt of 105 million euros, following a distribution of 66 million euros in dividends.