- Prachi Singh |
Net revenues at Brunello Cucineli of 384.2 million euros (452 million dollars), increased 10.3 percent at current or 9.8 percent at constant exchange rates compared to the same period in 2016 led by growth in all geographical areas and all distribution channels. The company said it achieved considerable growth in international markets and on the Italian market of 10.4 percent and 9.8 percent respectively.
Commenting on the company’s performance, Brunello Cucinelli, Chairman and CEO, said a media statement: “We have almost reached the end of this most interesting 2017, a year that we would like to define as particularly satisfying in terms of both financials and brand image, positioning and credibility. Sales of the winter collections are proceeding very very well, so we can say with confidence that we will deliver double-digit growth in terms of both revenues and profits.”
Financial highlights of Brunello Cucinelli results
Italian market reported a sales rise of 9.8 percent in revenues to 70.6 million euros (83 million dollars). The company added that the growth was very positive in all channels, retail monobrand, wholesale monobrand and multibrand and its largest boutique opened in Via Montenapoleone, Milan in January 2017 was a highest sales contributor.
European market achieved growth of 10.4 percent, with revenues reaching 116.1 million euros (136 million dollars), representing 30.2 percent of the total. North American market saw a sales increase of 6.3 percent, with sales reaching 130.2 million euros (153 million dollars), despite the negative effect of the exchange rate, particularly in the third quarter.
Sales in Greater China rose 37.7 percent to 29.5 million euros (34 million dollars). The company said that the sales trend was very positive in all areas in Greater China, Mainland China, Hong Kong and Macao, thanks in particular to the increase in sales achieved in the network of existing boutiques; a positive contribution was made by one net opening in Mainland China (which had 13 boutiques at 30 September 2017 and one opening in Macao.
Rest of the World revenues increased 8 percent, with sales reaching 37.9 million euros (44 million dollars). The positive growth trend was witnessed in all the main reference markets such as Japan, South Korea and the Middle East. The performance in Japan is supported by the performance of the direct boutiques and the sales results in the spaces inside the luxury department stores.
Positive revenue growth across distribution channel
Retail channel reported an increase of 19.8 percent with revenues reaching 187.3 million euros (220 million dollars), boosted by the performance of like-for-like and the development of the boutique network, which included the conversion of certain selling spaces from third party management to direct operations.
Like-for-like performance posted a growth of 4.2 percent. The company added that the evolution of the boutique network contributed to the growth to reach 93 direct boutiques at September 30, 2017, with three net openings over the past 12 months and the conversion of the four boutiques in Moscow from the wholesale monobrand channel. A positive contribution was also made by the passage of shop-in-shops in Canada in Holt Renfrew’s luxury department stores in Canada from wholesale multibrand management to direct operations.
Wholesale monobrand channel sales of 21.8 million euros (25 million dollars) rose 3 percent but declined 25.9 percent reported, excluding the transfers from third party to direct operations of the company’s online boutique and the four boutiques in Moscow. The growth trend has been boosted, the company said, by the group’s exclusive presence, with a current network of 30 boutiques in prestigious locations.
Wholesale multibrand channel’s growth was 7.7 percent to 175.1 million euros (206 million dollars) at September 30, 2017. Brunello Cucinelly stated that the contribution made to sales growth in the multibrand channel in China was very positive.
Picture:Brunello Cucinelli website