Brunello Cucinelli sees a 10.1 percent jump in Q1 net revenues

Brunello Cucinelli net revenues at March 31, 2017 rose by 10.1 percent or 9.5 percent at constant exchange rates to 134.1 million euros (145 million dollars) led by sales growth in all the distribution channels and markets.

Commenting on the company’s results, Brunello Cucinelli, Chairman and CEO, said in a statement, “In the first half of 2017 business has been really "very good", we feel that the image of our brand is "very suitable", as it perfectly identifies with our way of living and working. Considering the overall quality of our sales, we can envisage another "particularly good" year ahead, with double digit growth in terms of both revenues and profitability.”

Revenues across geographies witness growth

Sales in the Italian market rose 4.9 percent to 26.1 million euros (28 million dollars) compared to 24.9 million euros (27 million dollars) at March 31, 2016. European market sales increased 8.8 percent reaching 41.7 million euros (45 million dollars), while sales in the North American market saw a positive growth of 9.8 percent to 41.4 million euros (44 million dollars).

Greater China sales rose by 35.2 percent to reach 10.4 million euros (11 million dollars) and Rest of the World revenues grew 9.6 percent to 14.5 million euros (15 million dollars). The company said, a positive performance was achieved in Japan, the Far East and the Middle East.

Revenues by distribution channels up

Retail monobrand channel revenues rose 18.6 percent to reach 57.9 million euros (62 million dollars), while like-for-like growth continued in the first 17 weeks of the year with an increase of 3.9 percent. There were no new openings in the first quarter of the year, with the network consisting of 90 direct boutiques at March 31, 2017, with the four stores in Moscow being converted from the wholesale monobrand channel to the retail monobrand channel from March 1, 2017. On March 13, 2017, an agreement was signed for the passage to direct operations of 5 shop-in-shops in the Holt Renfrew luxury department stores in Canada, previously run using the wholesale formula.

Wholesale monobrand channel sales of 10.3 million euros (11 million dollars) increased by 4.4 percent. The company said, the dynamics of the wholesale monobrand channel were affected by the two key strategic decisions implemented in the first quarter of the new year, with the first being to transfer the four Moscow boutiques from third party management to direct operations and transfer of online boutique from third party management to direct operations. There were 32 boutiques in the wholesale monobrand network at March 31, 2017.

There was an increase of 10.6 percent in sales of wholsale multi-brand channel which reached 65.9 million euros (71 million dollars) at March 31, 2017.

Picture:Brunello Cucinelli website