Italy’s Brunello Cucinelli reports 29.1% revenue growth in FY22

Meanwhile, net income rose by 54.9 per cent to €87.2 million in FY22, accounting for 9.5 per cent of sales compared to 7.9 per cent in the previous year. EBITDA also saw a significant increase of 37.8 per cent, reaching €266.4 million, with a margin of 29 per cent compared to 27.1 per cent in the previous year, the company said in a press release.

Brunello Cucinelli invested heavily in FY22, with major investments totalling €72.5 million, as well as the acquisition of 43 per cent of the prestigious Lanificio Cariaggi Cashmere for €15.05 million. The company’s inventory also increased to €242.8 million, compared with €199.3 in FY21, due to new commercial initiatives, business development, and the expansion of the digital channel business.

Luxury fashion brand Brunello Cucinelli has reported impressive growth in fiscal 2022. The company’s net revenues grew by 29.1 per cent at current exchange rates to €919.7 million, with EBITDA up by 37.8 per cent to €266.4 million. The company expects revenue growth of between 12 per cent and 15 per cent for FY23, and 10 per cent in FY24.

The development of the direct-sales channel also contributed to the company’s growth, with the opening of new boutiques and the conversion of hard shops within luxury department stores to direct management. Brunello Cucinelli had 119 boutiques as of December 31, 2022, compared to 114 in the previous year, and 42 hard shops as of December 31, 2022, compared to 31 hard shops as of December 31, 2021.

In FY22, the company reported a balanced contribution from its retail and wholesale channels, which accounted for 62 per cent and 38 per cent of total sales, respectively. Brunello Cucinelli also reported a balanced contribution from the regions, with Europe accounting for 40 per cent of sales, Americas for 36 per cent, and Asia for 24 per cent.

Looking ahead to FY23, Brunello Cucinelli predicts a revenue growth of between 12 per cent and 15 per cent, with a healthy and fair profit and investment level in line with its multi-year plan. In FY24, the company believes that a revenue growth of around 10 per cent is reasonable.

Brunello Cucinelli, executive chairman and creative director of Brunello Cucinelli said: “The year 2022 was for our Casa di Moda a year that we define as one of high inspiration, of consistent growth, but above all of striking recognition of our brand for its identity in style, craftsmanship, exclusivity, and in the way it presents itself with respect to creation.

“We view this year 2023 as the beginning of a new time, animated by the awakening of great values and ideals; and perhaps it is time to come up with up-to-date solutions for blue-collar workers, restoring moral and economic dignity to the craft trades, our Italy being a manufacturing country that is well-loved by the entire world.”

Fibre2Fashion News Desk (DP)