Brunello Cucinelli reports strong revenue growth in 2018

Brunello Cucinelli S.p.A net revenues for 2018 rose by 8.1 percent at current exchange and 10.7 percent at constant exchange rates to reach 553 million euros (626 million dollars); while revenue from sales and services, including other operating income, amounted to 554.4 million euros (627.5 million dollars), an increase of 7.9 percent.

Commenting on the company’s performance, Brunello Cucinelli, the company’s Chairman and CEO, said in a statement: “2018 has been a year that we have defined as "splendid" in terms of both economic performance and image. As for 2019, considering the excellent performance of sales in the first months of the year and the extraordinary results of our order collection for fall/winter, we feel confident in envisaging growth of around 8 percent of revenues as well as a healthy profit growth, whereby we keep pursuing our important investments.”

Brunello Cucinelli’s results across geographical areas

In the Italian market, the company’s revenues rose 4.2 percent to 88.2 million euros (99.8 million dollars), representing 15.9 percent of the total. Revenue growth in the European market was 8.5 percent, with sales rising to 163.7 million euros (185.3 million dollars), representing 29.6 percent of the total. In the North American market high single-digit growth at constant exchange rates was achieved, with revenues rising to 187.2 million euros (211.9 million dollars), representing an increase of 3.9 percent at current exchange rates and 33.9 percent of the total.

Revenues in Greater China jumped 28.6 percent, with sales rising to 54.9 million euros (62.1 million dollars), with the proportion of the total still limited at 9.9 percent. Rest of the World revenues saw an increase of 10.6 percent, with sales reaching 59 million euros (66.7 million dollars), representing 10.7 percent of the total, with positive results in the Middle East and Japan, and in all the other geographical areas where the company has a presence.

Brunello Cucinelli’s distribution network performs well in 2018

Retail monobrand channel grew 6.3 percent, with revenues of 296.3 million euros (335.4 million dollars), representing 53.6 percent of the total. The year confirmed healthy like-for-like growth of 3.5 percent. The network consisted of 100 boutiques at December 31, 2018, unchanged over September 30, 2018: two new boutiques were opened during the year to which were added four conversions from the wholesale monobrand channel.

Revenues in the wholesale monobrand channel increased 19.4 percent, with revenues reaching 30.2 million euros (34.1 million dollars) compared to last year, representing 5.4 percent of the total. The company operates a network of 27 boutiques and there were four conversions to the direct channel in 2018, offset by the positive contribution coming from the opening in the Dubai Mall.

Wholesale multibrand channel posted an increase of 9.1 percent, with sales rising to 226.5 million euros (256.4 million dollars), representing 41 percent of the total.

EBITDA of 95.1 million euros represented an improvement in margins from 17 percent to 17.2 percent, and an increase of 8.8 percent. Normalized net income, excluding the fiscal benefits of the Patent Box scheme, amounted to 46 million euros (52.1 million dollars), representing a rise of 9.4 percent. Including the fiscal benefits arising from the Patent Box scheme, net profit for 2018 was 51 million euros (57.7 million dollars).

The company said that its board of directors will propose the payment of a dividend of 0.30 euros per share to shareholders at their next general meeting.

Picture:Brunello Cucinelli website