Sales at Italian luxury group Brunello Cucinelli rose 23.9 per cent in 2023, a touch above its latest guidance and market expectations, defying a sector slowdown thanks to its focus on the industry’s high end.
In recent months, investors have reduced their projections for the luxury sector’s sales as the industry’s growth returns to more normal levels following a robust post-pandemic rebound. Brands catering to affluent consumers are perceived to outperform those that rely more on aspirational consumers.
Cucinelli reported that early data indicates that sales reached € 1.14 billion in the previous year, slightly exceeding an LSEG-provided consensus estimate of € 1.13 billion.
According to the first luxury group to release preliminary sales figures for 2023, revenue increased by 20.8 per cent in the Americas, 40.4 per cent in Asia, and 16.8 per cent in Europe in the previous year.
The company also stated that it anticipated “a very good profit” for the year, and its CEO predicted that the company’s excellent success would continue.
“The great orders in our portfolio for the Spring-Summer 2024 collection and the excellent start of sales result in a most optimistic outlook for the first half of this year”, Executive Chairman Brunello Cucinelli said in a press release.
For the fifth time in a row, the design house increased its revenue growth prediction for 2023 last month, pointing to a sales growth of roughly 22-23 per cent at current exchange rates. The business affirmed that revenues would rise by about 10 per cent in 2025 and this year. Cucinelli continued, saying that the fourth quarter’s revenues alone increased by 15.6 per cent to € 321 million, “the best result ever in absolute value”.
