Italian fashion house Brunello Cucinelli reported revenue of €620.7 million (~$686 million) in the first half (H1) of 2024, up 14.1 percent at current exchange rates (14.7 percent at fixed exchange rates), compared to June 30, 2023, in line with preliminary figures published on July 11.
Brunello Cucinelli posted revenues of €620.7 million (about $686 million) in the first half of 2024, up 14.1 percent year-on-year. Operating income rose 19.3 percent to €104.6 million (about $115.7 million), with the margin increasing to 16.9 percent. The company expanded its production with new facilities in Italy, enhancing its production of high-quality garments.
The first half of 2024 showed excellent results both in terms of revenue and margin growth, with Operating Income of €104.6 million (~$115.7 million), up 19.3 percent compared to €87.7 million (~$97.04 million) last year, with a margin of 16.9 percent compared to 16.1 percent as of June 30, 2023.
The evolution of the Income Statement is characterized by the increase in the First Result Margin, thanks to the positive contribution of the sales mix (distribution channels, geographic areas and product mix) and the expansion of internal production.
This expansion has been achieved through the opening of manufacturing facilities to produce tailored men's outerwear and suits, in districts of excellence in artisanal tailoring, such as the factory in Penne, Abruzzo in the second half of 2023 and more recently in Gubbio, Umbria, the company said in a press release.
At both locations, production has started in rented factories, pending completion of construction of the new manufacturing facilities, and the number of employees is expected to increase further in the coming months.
This process of internalizing parts of the production of exclusive and high-quality garments means a lower incidence of production costs, although these are offset by higher operating costs, mainly personnel costs.
“We closed the first half of 2024 with particularly satisfactory results. Sales were excellent, earnings were positive and balanced, the brand is fit and healthy, and the response to our product offering was very favorable. We completed the 2024 summer sales very successfully, and the winter sales got off to a very good start. All of this leads us to confirm our forecast of revenue growth for fiscal year 2024 of around 10 percent, with healthy and sustainable earnings.” Brunello Cucinelli, CEO and creative director of the Casa di Modasaying.
“We are also particularly pleased with the presentation to the world press of our new corporate website in July in Milan, after three years of work. This site was built together with Artificial Intelligence. We devised a website without pages, where the content flows and comes together in front of the visitor, thanks to a technology that tries to understand and follow the users’ intention, creating what they see at the moment. We have called this technology Solomei AI. We believe that this new website is really very special, also thanks to the support we have received from our friends in the world of AI,” added Cucinelli.
The high quality of revenues in the first half of the year, the commercial performance, the very decent sales that the company is reporting and the timeliness of shipments allow to fully confirm the planned revenue growth for 2024 of approximately 10 percent, with healthy and balanced earnings.
