MILAN — Brunello Cucinelli’s sales have more than doubled since 2019 and, given its solid growth, the company now expects to double revenues by 2030 compared to 2023.
However, the namesake entrepreneur said this is to be achieved while maintaining the exclusive positioning of the brand; its nature as a ready-to-wear label, a category that represents around 85 percent of total sales; upholding the Italian identity, craftsmanship and production pipeline; a discreet and understated communication strategy, and obtaining “a fair and healthy profit. These are crucial for the life of a company in the long-term,” said Cucinelli, commenting on 2024 earnings during a conference call with analysts at the end of trading on Thursday in Milan.
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The luxury company closed 2024 on an upward trajectory, with sales rising 12.2 percent to 1.28 billion euros, compared with 1.14 billion euros in 2023.
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Profit climbed 19.5 percent to 128.5 million euros, net of an extraordinary capital gain due to the sale of a minority stake in Lanificio Cariaggi to Chanel in May 2023.
While the Cariaggi investment was done to protect a longtime supplier, during the call Cucinelli reiterated that “there is no interest whatsoever in acquisitions, we are focused on brand management, quality and craftsmanship.”
First-quarter sales and the orders for fall 2025 allowed Cucinelli to confirm “an improved operating profit” in 2025 and a 10 percent sales growth this year and in 2026.
In the 12 months ended Dec. 31, operating profit amounted to 211.7 million euros, up 12.9 percent from 2023.
Earnings before interest, taxes, depreciation and amortization totaled 364.7 million euros, growing 11.8 percent, and representing a margin of 28.5 percent of sales.
In 2024, sales in Italy rose 9.4 percent to 140.9 million euros, representing 11 percent of the total.
Revenues in Europe, excluding Italy, were up 5.4 percent to 315.6 million euros, accounting for 24.7 percent of the total, boosted by both local and tourist spending.
Sales in the Americas climbed 17.8 percent to 476.5 million euros, accounting for 37.3 percent of the total.
Sales in Asia increased 12.6 percent to 345.4 million euros, accounting for 27 percent of the total.
Retail revenues rose 14 percent to 851.2 million euros, accounting for 66.6 percent of total sales.
As of Dec. 31, the company had 130 directly operated stores. Last year, the most important openings took place in Miami’s Design District, Toronto (at Yorkdale) and Wuhan, and the Venice and London Sloane Square stores were expanded. In 2025, stores will open in Dubai, Vancouver and Paris, among others. The brand is available at 400 multibrand accounts.
The wholesale channel, which continues to be central to Cucinelli’s strategy, was up 8.8 percent to 427.3 million euros, representing 33.4 percent of sales.
Asked about current trading, chief executive officer Luca Lisandroni said “we are pleased with the performance in the first quarter, with well-balanced sales in America, Europe and Asia and excellent contribution from both the retail and wholesale channels. The year started in the best possible way, it’s a moment of great opportunities and we see continuity in 2025.”
Asked about Saks Global’s acquisition of Neiman Marcus and the vendor payment change, Cucinelli said they “are the best players” in the luxury segment and there are “no big challenges expected. At times they want to review the payments but we don’t foresee problems.”
The company has earmarked investments of 109.5 million euros, kicking off a 10-year 2024-33 plan that sees the expansion of its plants to double its production. “We expect to complete the tailoring production with the four plants in Solomeo, Carrara, Penne and Gubbio at the end of 2026,” said Cucinelli.
Investments will continue to normalize from 2027, representing around 7 percent of sales, a level similar to 2023.
Communication investments amounted to 92.3 million euros, up 17 percent compared with 78.9 million euros in 2023.
Prices this year will increase 3.5 percent, defined as “organic and natural.”
As of Dec. 31, net debt amounted to 103.6 million euros.
Among 2024 highlights, Cucinelli cited the second three-day symposium he hosted in May in Solomeo, the ancient town he has restored and that houses his namesake company’s headquarters, which was focused on “exploring the relationship between ethics and artificial intelligence.”
The Universal Symposium on Soul and Economics drew the likes of Reid Hoffman, cofounder and executive chairman of LinkedIn, and Nicholas Thompson, chief executive officer of The Atlantic, to name a few.
In July, the company launched a new website innovated through the use of artificial intelligence called Solomei AI.
The board will propose a dividend distribution of 94 euro cents per share, a payout ratio of 50 percent.