Brunello Cucinelli reports upbeat FY15, revenues up 16.4 percent

The Brunello Cucinelli Group earned net revenues of 414.2 million euros (460.6 million dollars) in the year ended December 31, 2015, an increase of 16.4 percent over the last year, representing sales growth of 9.5 percent at constant exchange rates. Revenues, including other operating income, reached 414.9 million euros (460.9 million dollars), a rise of 16.1 percent.

Commenting on the company’s performance, Brunello Cucinelli, Chairman and CEO, said, “2015 has been a “splendid” year for our company. In this year we have enjoyed a healthy growth in terms of both volumes and profitability; in this year our brand has strengthened its identity even further. As of today, we can therefore envisage a particularly beautiful and serene 2016, with a gracious, double-digit growth.”

Revenues by geographical area

The international markets represented 82.9 percent of total net revenues, rising by 19.4 percent; the Italian market achieved positive results, with sales increasing by 3.6 percent to 71 million euros (78.9 million dollars). There was a solid performance in leading cities and resorts, in both the mono-brand and multi-brand boutiques, with a positive increase in like-for-like in the network of existing boutiques.

European market revenues rose by 10.5 percent, representing 31.2 percent of sales. These results were positively affected by the rising flow of top-end tourists seen in the leading European capitals and resorts. North American market revenues rose by 27.4 percent, representing 37.8 percent of the total. All the distribution channels posted growth in sales.

Greater China sales increased 23.3 percent and Rest of the World turnover grew by 18.1 percent. Growth was supported by the good performance of sales in existing boutiques, the new openings and the conversion of the business in Japan to directly operated on September 1, 2014, mainly encouraging growth in the first half of 2015 with the trend gradually normalizing in the second half of the year.

Revenues by distribution channel

Revenues in the retail mono-brand channel rose by 30.1 percent, representing 46.6 percent of the total due to a like-for-like performance of 5.4 percent in 2015, the positive contribution of the selected openings, with the direct store network reaching 81 boutiques and the foreign exchange effect. In 2016, like-for-like performance was 4.1 percent at February 28. The wholesale mono-brand channel grew by 8.1 percent driven by the performance of existing boutiques, with the two net openings having a positive impact; the network consisted of 36 boutiques at December 31, 2015.

Sales in the wholesale multi-brand channel rose by 6.3 percent, 45.3 percent as a proportion of total turnover. Growth in the wholesale multi-brand channel accelerated particularly in the second half of the year, with increases favored by a significant exchange effect and by the homogeneity of the perimeter for comparison.

The mono-brand network consisted of 117 boutiques at December 31, 2015, with 12 net openings taking place over the 105 stores at December 31, 2014. There were 81 direct mono-brand boutiques and 36 boutiques in the wholesale mono-brand network at the end of the year.

EBITDA increased to 69.1 million euros (76.8 million dollars), a rise of 11 percent. The company said, business development, like-for-like growth and changes in the sales channel mix all had a positive effect on margins. The proportion of retail sales rose from 41.7 percent last year to 46.6 percent in 2015, with the increase driven by the development of the direct network and the conversion of the business in Japan to direct operations.

Proposal for the payment of a dividend

The Board of Directors will propose the payment of a dividend of 0.13 euros (0.14 dollars) per share to shareholders at their next general meeting, to be held at Corciano, Solomeo on April 21, 2016, equal to a pay-out of 26.5 percent of the company’s net profit for the year.