Resilient and optimistic: Cucinelli records -30%, but the worst is now behind

Resilient and optimistic: Cinelli records -30%, but the worst is now behind

Resilient and optimistic. Brunello Cucinelli closed the first semester of 2020 with sales down by 30%, but the worst is now behind. The brand plans, in this scenario, to recover in the second half of the year to close 2020 at -10%, and return to growth in 2021. In other words: recording a +15%. Accessories will generate 15% of total revenue, while unsold clothes will be “gifted”, said the board, via a special depreciation fund worth about 30 million euro.

Resilient and optimistic

Cucinelli points out that there were no layoffs and its 2,024 people-workforce (between production and retail) is back to work in its entirety. “No change was made to our 10-years growth plan (2019-2028), which should lead us to double revenue”, reads an official company note. The brand’s board has also decided to set up a special depreciation fund worth about 30 million euro to give out unsold clothing for free. The items will have a special label with the writing “Brunello Cucinelli for Humanity”. “We have a large number of excess items compared to the previous semester – explains Brunello Cucinelli to  Reuters -. We don’t want to be reselling them in 2021 because we believe this could damage the contemporary image of the brand”.

In photo, Brunello Cucinelli  to the right (Imagoeconomica), outerwear to the left nappa branded Cucinelli (taken from shop.brunellocucinelli.com)

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