Brunello Cucinelli: net income grows by 2.7%

By

Dominique Muret

Published
Aug 27, 2015

Brunello Cucinelli's results for the first semester 2015 confirm the positive trend announced last July, when preliminary figures were published.

In the first six months of the year, net income for the Italian fashion label specialised in top-of-the-range cashmere grew 2.7%, reaching € 15.5 million, while EBITDA climbed to € 33.4 million (+11.8%), equivalent to 16.6% of revenues, the company stated in a press release.

The brand underlined how operational costs in the period have significantly increased alongside the business' growth, with the renovation of some of its showrooms, new store openings and the changeover of the directly-owned shops in Japan. Due to the relocation and enlargement of Cucinelli's most prestigious stores, lease costs have notably doubled, rising from € 12.6 million to € 22 million, while personnel costs grew 18% in the first semester, the brand has specified.

Add to this Cucinelli's commercial investments and those for manufacturing and logistics, risen to € 20.7 million as of June 30th 2015 (€ 37.0 million over the last 12 months), all featuring in the industrial plan for the 2013-15 period. Net financial liabilities amount thus to € 78.3 million in this first semester, compared to € 46.1 million as of June 30th 2014.

In the first six months of the year the group recorded revenues for € 200.3 million, posting a 13.9% rise over the same period a year earlier. Sales have progressed in all markets: North America (+25.8%), Europe (+5.3%), Greater China (+14.5%), the rest of the world (+36%).

Brunello Cucinelli, CEO and founder of the luxury brand defined these results as "excellent", allowing him to look forward to a "very fine" end of the year and to a 2016 which will also be "highly interesting, with double-digit growth."