Brunello Cucinelli Reports H1 Sales Growth, To Unveil New Site With AI
Details about the new project are still under wraps because its official presentation will take place in Milan on Tuesday.
MILAN — Brunello Cucinelli's namesake company continued to grow in the first half of the year, but on Thursday the entrepreneur was more eager to speak about a new corporate website built with the help of artificial intelligence.
Although the details are still under wraps because the official presentation of the project will take place in Milan on Tuesday, Cucinelli admitted he couldn't conceal his excitement.
“After working on this site for three years, in a few days we will present our new corporate website to the world in Milan, a project imagined and built together with artificial intelligence, which is probably one of the first in the world,” said Cucinelli. “For us it is something extraordinary that will enable our employees to look at AI with excitement, confidence, familiarity and much less fear and concerns than in the past.”
He also recalled the second Universal Symposium on Soul and Economics held at his headquarters in Solomeo, reflecting on the relationship between ethics and AI, and between humanism and technology, which drew the likes of Reid Hoffman.
That said, Cucinelli was clearly pleased with the performance of the company, which reported a 14.1 percent increase in preliminary revenues in the first six months of the year. In the first half ended June 30, sales totaled 620.7 million euros, compared with 544 million euros in the same period last year.
In the second quarter, revenues amounted to 312 million euros, compared with 309 million euros in the first quarter.
Luca Lisandroni, who shares the chief executive officer title with Riccardo Stefanelli, underscored that the “growth trend was registered across the board, and was balanced by channel, geography and gender.”
Men's and womenswear each now represent 50 percent of sales.
The growth trend for the month of
July was in line with the first half, he said responding to an analyst.
In the first six months, the Americas certainly helped the performance, as revenues in the region climbed 19.4 percent to 225.6 million euros, accounting for 36.4 percent of the total. Growth was reported in the major cities, but also in resort locations and provincial cities. Responding to an analyst, Cucinelli said the brand had “not yet seen any turbulence caused by the elections.” Asked about the potential Saks and Neiman Marcus deal, he said, “We have a wonderful relationship with both and I am sure we will continue to do a great job with them.”
In Europe, revenues totaled 21.1 million euros, up 9 percent on the first half of 2023 and representing 35.6 percent of the total, lifted by locals and American and Asian tourists.
Sales in Asia rose 14.3 percent to 174 million euros, accounting for 28 percent of
the total, registering very solid results in all areas, including China, Japan, South Korea and the Middle East. Lisandroni said the brand had not seen a slowdown in China and was performing well organically. “There are new infrastructures and new malls being built, which lead to a new enthusiasm,” he contended, adding that the brand is having “a good moment” also in Hong Kong.
Global retail sales rose 14.7 percent to 395.2 million euros, accounting for 63.7 percent of the total. As of June 30, there were 126 stores. A new store in the Miami Design District opened in May, in a “Florida that is showing much potential and brisk business,” said Lisandroni.
In the second half, a store will open in Toronto and one in Wuhan, China, and the company will expand its London boutique at the end of the year or early 2025.
Wholesale gained 13.1 percent to 225.5 million euros, representing 36.3 percent of the total.
The company is investing in doubling its manufacturing plant by restoring an existing industrial site in Solomeo and Stefanelli said the works should be completed in October and “guarantee production until 2035.”
In the 2024-2025 period, the company also plans to open new manufacturing sites in Italy, in Penne and in Gubbio, supporting the plans to double turnover, as expected by 2030.
In light of the orders booked so far, Cucinelli confirmed once again his expectations to increase the company's sales by 10 percent in the year, as well as in 2025, with a “healthy” profit of around 10 percent in 2024. He spoke at length of the importance of fair wages for employees and the right price for the value offered. For fall, the company is raising prices by 1 to 2 percent, avoiding “unreasonable hikes that even wealthy customers don't want to see.”