Thanks to strong market demands, the luxury fashion label is expected to hit the milestone this year
Brunello Cucinelli’s namesake label could soon reach the billion-dollar mark.
The Italian fashion brand hit €919.5 million in sales by the end of 2022, a 29.1 percent increase compared to the year before, according to Vogue Business. And the company may have more celebrations on the horizon: Strong market demand for the label’s offerings could now see Brunello Cucinelli reach €1 billion in revenue in 2023.
Last month, the brand projected year-over-year (YOY) sales would have increased by 28 percent in 2022, and will grow by 12 percent this year. Its 2023 sales forecast hasn’t changed as of Monday, but the company revealed it expects sales to grow by another 10 percent in 2024. The label had a 10-year growth plan to double its revenues from 2019 to 2028. These latest forecasts mean the goal could be met ahead of time if they play their cards right.
“2022 was undoubtedly our breakthrough year,” Cucinelli told Vogue Business. YOY sales for the brand grew by a staggering 40.5 percent in the Americas last year, which the business reportedly credits to “demand for high luxury consolidating.” This included store and boutique openings in the region and healthy wholesale performance at luxury department stores. Brunello Cucinelli sales in Europe increased by 20.8 percent, thanks to the return of international tourism. Asia rounds out the brand’s top performing markets, with an increase of 28.1 percent that includes double-digit growth in China, due to a logoless luxury trend.
Brunello Cucinelli’s wholesale rose by 18.4 percent as well, alongside a direct retail increase of 36.6 percent for 2022. Both offerings, the brand claims in a statement, has allowed it to meet demand in big cities and resort destinations. Smart decisions made at the top of the pandemic are also reportedly paying off, including not laying off any staff members globally and keeping salaries the same as they were in 2019. Other decisions such as saving surplus goods from closed boutiques for the Brunello Cucinelli for Humanity project and maintaining strong inventory levels have also kept cash flowing in.
“Special kudos goes to our Italian welfare state, which, by allowing us during this pandemic period not to lay off any employees and supporting us in part financially, has enabled us to keep our production and business facilities at full strength,” the brand says in a statement. “There is no doubt that in 2022 [global] demand for luxury products has exceeded supply, which for us as for many Italian companies, has brought great benefits. It will not be so easy to fully restore the world’s production facilities, and so we think that perhaps Italy could still benefit to some extent in 2023 as strongly as it has benefitted in this past year.”
And it seems the luxury label will have even more to look forward to: In February, the luxury label will present its next menswear collection at Pitti Uomo in Milan. Cucinelli will then accept the Neiman Marcus Distinguished Service in the Field of Fashion Award at Paris Fashion Week in March for demonstrating exceptional innovation skills.
Sounds like a pretty sweet first quarter to us.
This article was first published on Robb Report USA