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Brunello Cucinelli reports FY16 revenue growth of 10.1 percent

By Prachi Singh

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Business

In the year ended 31 December 2016, net revenues at Brunello Cucinelli amounted to 456 million euros (483 million dollars), up 10.1 percent on the 414.2 million euros (439 million dollars) posted at 31 December 2015, representing an increase of 10.4 percent. Revenues from sales and services, including other operating income, reached 457 million euros (484 million dollars), a rise of 10.1 percent over 414.9 million euros (439 million dollars) reported in the previous year.

Commenting on the company’s positive results, Brunello Cucinelli, Chairman and CEO, said in a press release, “2016 ended reporting ‘very very positive’ results in terms of both revenues and profitability. It has been yet another key year for the image of our brand, since we have completed our grand project called "Humanistic Artisans of the Web” by launching our e-commerce platform.”

The company posts rise across geographies

The company said, Italian market grew significantly, with sales increasing by 7.3 percent to 76.2 million euros (80.7 million dollars), which benefited from a larger inflow of high-end tourists. In the European market revenues rose by 5.8 percent to 136.4 million euros (144 million dollars. The company said, revenues rose in all the countries of the European market, in both the mono-brand and the multi-brand.

In the North American market revenues increased by 7.1 percent, reaching 167.7 million euros (177 million dollars). Sales in Greater China rose by 21.8 percent to 31.3 million euros (33 million dollars). In the Rest of the World revenue posted strong growth of 39.3 percent reaching 44.4 million euros (47 million dollars). The company said, this increase was driven by sales in Japan; Far East and the Middle East, with the opening of a boutique in Dubai.

All retail channels witness a sales rise

Revenues in the retail mono-brand channel rose by 17.1 percent to reach 226.2 million euros (239 million dollars) at 31 December 2016, with like-for-like sales growing 3.9 percent. The company now operates 86 directly operated stores. The company’s like-for-like sales increased 3.8 percent between January 1 and February 26, 2017.

The wholesale mono-brand channel grew by 2.4 percent with revenues totalling 34.2 million euros (36 million dollars), which the company said was driven by the performance of existing boutiques, with sell-outs in line with those of the retail mono-brand channel. At 36, the number of total boutiques remained unchanged for the past 12 months. Sales in the wholesale multi-brand channel rose by 4.3 percent, reaching 195.6 million euros (207 million dollars).

EBITDA improves 13.2 percent

The company said, normalized EBITDA grew by 13.2 percent, reaching 78.2 million euros (82 million dollars), with a margin improvement of 40 bps from 16.7 percent to 17.1 percent. This increase was driven by business growth, positive sell-outs, like-for-like growth and changes in the sales channel mix.

The Board of Directors plans to propose the payment of a dividend of 0.16 euro (0.17 dollar) per share to shareholders at their next general meeting, to be held on 20 April 2017 in first call, equal to a pay-out of 29.9 percent of the Group’s net profit for the year, compared to 26.5 percent for the previous year.

Picture: Brunello Cucinelli Website

Brunello Cucinelli