Brunello Cucinelli yearly net revenue up 15.5 percent in 2013

REPORT_The Board of Directors of Brunello Cucinelli announced the preliminary financial results for the year ending December 31, 2013 with net revenues of 322.5 million euros (436.2 million dollars) and increase of over 15.4 percent compared to net

revenues for the year ended December 31, 2012. With orders for Spring/Summer as well as the great appreciation enjoyed by its Fall/Winter men’s collection, company envisages a gracious double -digit growth in revenues and profit for 2014.

A significant increase on the international markets of above 21.4 percent supported the growth, driven by sales in the USA up 23.2 percent and in Europe over 20 percent, together with rises in Greater China of over 52 .5 percent and the rest of the world registering over 5.7 percent. Sales in the Italian market witnessed a slight fall of 2.9 percent.

C

ommenting on the results, Brunello Cucinelli, the Group's Chairman and CEO, said, “For our company, 2013 has been another very very special year. The double-digit growth posted by revenues has been very interesting and, judging from the quality of sales, we can foresee as much a significant growth in profit, too. However, the greatest result has perhaps been achieved from the image point of view. Being positioned in the ‘absolute’ luxury segment as a ready-to-wear company, we are acknowledged a high level of craftsmanship, quality and creativity, a typical expression of a well-manufactured Made in Italy product and featuring “exclusive” distribution in particular. The US, European and Japanese buyers have shown a very strong demand for very high-quality womenswear and menswear. The presentation of the new men’s suits collection has stirred great interest, which is evidence of comeback of suits also among young customers.”

The increase in sales in the US was driven by sales made in the existing network, the opening of new floor spaces and the important results achieved by sell-outs. The group’s exclusive presence in the prestigious hard shops of the leading luxury department stores and in the boutiques located on the most exclusive streets of this area led to double-digit increases in the wholesale multibrand channels and in the mono brand channel. As on December 31, 2013 the mono brand network consisted of 16 boutiques, a figure which includes 2 openings in 2013. In Europe, the program of selected openings of monobrand stores continued in 2013 with 6 boutiques, with increases in sales in the comparable floor spaces. The network of directly operated boutiques reached 19 sales points by 31st December 2013, with 2 openings in leading European cities of Barcelona and Munich and the passage of the two prestigious boutiques in London from the wholesale mono-brand network to the direct network.

The wholesale mono-brand network reached 21 boutiques, with openings in the emerging markets including Istanbul, Almaty and Ekaterinburg and in selected areas of Western Europe (Copenhagen). The increase in sales in China, which rose by over 50 percent, was mainly driven by the conversion of stores in the wholesale monobrand network to the direct network.

Revenues through retail mono-brand sales channel rose by 50 percent, representing 35.8 percent of total revenues. Existing floor spaces made a positive contribution to sales; the considerable growth achieved additionally benefited from the selected opening of nine boutiques in the year and the six conversions of stores in the wholesalemonobrand network to the direct channel. Wholesale mono-brand sales channel revenues represented 10.3 percent of the total, with an increase of 1.2 percent over 2012. These results were affected by six conversions to the retail mono-brand network.

Brunello Cucinelli, is an Italian maison operating in the absolute luxury goods sector which specializes in cashmere and has gradually become one of the most exclusive brands in the international informal luxury prêt-à-porter sector. The group operates in more than 55 countries worldwide through a network of 98 boutiques located in the world’s leading cities.