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Translated by
Nicola Mira
Published
Jan 11, 2017
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Double-digit growth for Brunello Cucinelli in 2016, high-end positioning pays off

Translated by
Nicola Mira
Published
Jan 11, 2017

Despite the market's generalised slow-down, Brunello Cucinelli played its cards well in 2016, ending the year with double-digit growth. Moreover, the Italian luxury label is expecting for 2017 another round of "healthy two-digit growth, both in terms of revenue and profits."


Brunello Cucinelli, Autumn/Winter 2016-17 - © PixelFormula

 
The Italian label, specialised in cashmere and listed on the Stock Exchange since 2012, has published its preliminary results, showing how last year it kept a sustained pace, with a 10.1% growth (+10.4% at constant exchange rates) compared to the same period a year earlier, and reaching a revenue of €456 million.

Brunello Cucinelli's strategy focuses on exclusive luxury, with a high-quality range manufactured in Italy. It is a strategy that is proving successful, as the fashion label's eponymous founder and boss underlined in the press release, stressing how "the achievement of these very, very positive results confirms the soundness of our business model."

The group's sales have notably increased on the exports side (+10.7%), a segment that accounts for 83.3% of total revenue. The USA are Cucinelli's major market, representing 36.8% of its total sales and generating a revenue of €167.6 million, equivalent to a 7.1% rise compared to the same period a year earlier.

Sales in Europe have grown 5.8% to €136.4 million, while in Greater China they surged 21.8%, though they only represent 6.9% of total revenue, being worth €31.4 million. It was the 'rest of the world' aggregate however that recorded Cucinelli's best performance: its sales, accounting for nearly 10% of the global total, soared by 39% and reached €44.4 million, thanks to energetic performances in Japan and South Korea, as well as in the Middle East, where the label has recently opened a flagship store in Dubai.

The Italian market only accounts for 16.7% of global revenue, and sales have risen there too, by 7.3%, reaching €76.2 million.

In the four years between 2013 and 2016, the group has invested €150 million to bolster its distribution network and its manufacturing facilities.

 "Another excellent year has gone by for our company, marked by double-digit growth and a very positive worldwide reputation," said CEO Brunello Cucinelli.
 
 

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