Cucinelli enjoys recovery. In 2020 third quarter, the brand has achieved better results, compared to the same period of 2019, as revenues increased by 3.6% at current rates of exchange (in line with financial analysts’ estimates). “Such results are by far extremely rewarding. We are confident this fair trend will possibly go on in 2020 fourth quarter”, pointed out Brunello Cucinelli.
A comforting trend change indeed, so much so that the brand expects a growing second half-year period. At that point, at the closing of 2020 downturn in earnings would be just “slight” (around -10%), ahead of positive outlook for 2021: +15%. In the first 9 months of 2020 revenues amounted to 379 million euros: that is, -17.5% at current rates of exchange and -17.4% at fixed rates of exchange.
Cucinelli enjoys recovery
In the third quarter of the year, the overall turnover of the fashion brand, headquartered in Solomeo (in the province of Perugia), reached 173.8 million euros. Good performance in North America, Europe and China. Bad results, conversely, in Italy (-5.5%) as much as in the rest of the world. Brunello Cucinelli has emphasized the role of the manufacturing industry chain, entirely Italian: in fact, he considers it as the best asset out of the four distinguishing features of the company, “which proved to be paramount, in our opinion”, as pointed out in a press release.
Besides the Made in Italy, Cucinelli also mentioned “the strategic role traditionally played by wholesale channel”. Furthermore, “the central importance and resilience of American market”. Ultimately, he highlighted “the brand’s attitude towards a focus on being “domestic” in all markets”.
Freshness and positivity
“Since July 1st we began looking at the business with freshness and positivity, and we did not let results, achieved in the first half-year period, influence us”. We are “fully aware we are going through a transitional year and we have just stepped into a sort of New Era, which requires humility, courage, creativity and smart action”, remarked the company. “We shall pay close attention to each product: where they made it and how they made it. Moreover, we will make sure its production has not damaged the environment”.
In the next future
The company believes they will be able to close 2020 second half-year period by enjoying a positive trend, with a limited downturn in annual revenues, which will supposedly decrease by 10%. “We have completed our total orders for Spring-Summer 2021, which turned out to be particularly successful both in terms of figures and exposure.
Following all that, we figure that 2021 will be a remarkably positive year, which we consider as a “rebalancing year”: we expect that earnings will increase by around 15%”.
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