Updated 1:17 p.m. ET April 16
MILAN — Even in an economic downturn, Brunello Cucinelli seems to stay in style. In its first-quarter results, the Solomeo, Italy-based company showed that sales momentum shows no signs of slowing down, as its key markets posted healthy growth despite the consumer spending slowdown across the globe. This trend continued and was evidenced by a “highly successful order intake” for its fall 2025 collections and an “upward trend” overall into the first half of April, the firm said.
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In the first quarter of 2025, revenues rose 10.5 percent to 341.5 million euros compared to 309.1 million euros reported a year ago. The strong performance was driven by growth in its primary geographic areas: the Americas were up 10.3 percent, Europe rose 10.1 percent and Asia-led gains, rising 11.3 percent.
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As a result, Cucinelli maintained guidance confirmed in January of revenue growth of around 10 percent in both 2025 and 2026. At the time, the company reported record revenues of 1.28 billion euros and affirmed its intention of doubling 2023 turnover by 2030. Its 2024 to 2026 investment plan also remains unchanged.
In an effort to continue to innovate its stores and showrooms, Cucinelli last year invested about 108 million euros, with an impact on sales of 8.5 percent. This also includes the expansion of the company’s Solomeo headquarters, already partly operational in 2025, and the production capacity for the 10-year project running from 2024 to 2033. These investments will allow the company to pursue its objectives for the next decade. The company is also investing in the opening of new production facilities in Italy, in Penne (Abruzzo) and Gubbio (Umbria), key manufacturing hubs of men’s outerwear and tailored suits.
Cucinelli, who holds the role of executive chairman and creative director, urged the company’s employees and external collaborators to remain “gracious, united and focused” until the world economy finds stability.
“We regard this as a truly “special” moment for the world at large. We believe that such challenges are cyclical by nature and part of the broader human experience; and we sincerely hope that the tensions of today may give way to a spirit of collaboration among people, paving the way for a future enriched by generosity and courage,” Cucinelli said.
In the first three months of 2025, retail sales rose 11.9 percent, while wholesale revenues were up 8.2 percent.
During the conference call with analysts, Cucinelli was asked how the company would mitigate the effects of U.S. President Trump’s unpredictable tariff policy. “Tariffs could go into effect in July….It could result in price increases of 3 to 4 percent. We are not underestimating the situation,” Cucinelli said.
In light of the uncertain macroeconomic situation, the company said it met with its network of more than 400 artisanal workshops asking them for continued promptness, flexibility and responsiveness.
This week, fellow luxury goods players like LVMH Moët Hennessy Louis Vuitton also reported first-quarter results. Peppered with questions about mitigating the darkening economic picture and volatility around tariffs, LVMH’s chief financial officer Cécile Cabanis suggested that the group would focus mainly on the product mix and carefully calibrate prices, stressing there is no “one-size-fits-all” solution.
With regard to Asia, Cucinelli was optimistic and said the opening of a new store in South Korea in October and another in Japan by the end of 2025 are among the potential drivers in the region. The brand’s exclusive positioning has been the key to growth in China.
“We have strong ties to China. We have been buying cashmere there for 40 years. People there are connected and informed…if we stay exclusive the future will be brilliant,” continued Cucinelli, who earlier this month was awarded an honorary Ph.D. in “Design for Made in Italy: Identity, Innovation and Sustainability” from University of Campania “Luigi Vanvitelli” in Caserta’s School of Architecture. Cucinelli’s doctoral lecture was titled “The Genius Loci, Master of the Arts.”
Brunello Cucinelli’s shares closed up 1.54 percent on the Milan Bourse Wednesday prior to the release of the results and conference call.