Exclusivity is the secret behind Brunello Cucinelli’s growth. For the third time this year, the Umbria-based company has raised the forecasts for 2023. Now it expects the yearly growth to be +19% on 2022. “Exclusivity and rarity allow a company to last a century. A business needs courage to remain exclusive”, says the entrepreneur (photo from Imagoeconomica) during the conference call with analysts. He also added that revenue grew 31%, along with net income during the first semester of 2023, compared to the same period of 2022.
The courage to be exclusive
“Luxury is exclusivity, rarity and uniqueness. It’s when clients feel a product is made almost solely for them”, says Brunello Cucinelli (source WWD). According to the entrepreneur, exclusivity is a determining factor to reach the positive results of the company during the first half of 2023. During the period, revenue amounted to 543.9 million euro, +31% at current exchange rates compared to the same period of 2022. Sales in Asia took off (+55.6%), while the Americas show no signs of slowing down (+23.8%). The margin increased to 16.1% compared to the comparable 13.9% of the past. Profits for the first 6 months amounted to 66.7 million euro, +31.9%.
We believe they year will close nicely
“After 8 months of this interesting year, and given the great start of the year for the retail stores for the Fall/Winter collections, we are expecting a nice closing for the year, with revenue up 19% and solid profits”. In December 2022 forecasts for 2023 were expected to be +12%, which was later updated to +15% and again in July for between +17% and +19%. Now there is a new forecast: +19%. “The collection of orders for Spring/Summer 2024 (men’s and women’s) has closed with great results: our ideal growth is around +10% for the coming year”, concluded Cucinelli.
It’s to be noted how investments in communications went from 20.4 million euro in June 2022 to 36.3 million the year after. Other investments (18.6 million euro) were utilized for manufacturing updates and two structural projects. The first: widening Cucinelli’s production site by updating an area of 8 hectares near the existing company plant. Second: the creation of a new site completely dedicated to men’s feather jackets in Abruzzo.