Preliminary consolidated net revenues for the first half ended June 30, 2017 at Brunello Cucinelli rose by 10.7 percent and 9.7 percent at constant exchange to reach 243.3 million euros (277 million dollars), driven by sales revenue rise in all distribution channels, mono-brand and multi-brand, and in all markets, domestic and international.
“We are particularly pleased with our company’s performance in the first half of 2017; we believe that the results achieved in terms of growth are noteworthy both for their consistency and their compliance with expectations. If we indeed take a look at the general context and at the very good start of the second half of the year and in particular the satisfying performance of the spring/summer 2018 sales campaign for men, we feel pretty confident that the full year will deliver double digit growth in terms of both sales and margins,” said the company’s Chairman and CEO Brunello Cucinelli in a media release.
The company said, Italian market reported a revenue rise of 5.9 percent or 17.2 percent on total to 41.8 million euros (47.6 million dollars). In view of the role the Italian market plays for the company and the offering of apparel, Brunello Cucinelli said, the opening of the largest boutique in Via Montenapoleone, Milan at the beginning of the year has further contributed to heightening the brand’s allure.
Sales in the European market improved 9.9 percent to reach 75.2 million euros (85.7 million dollars). The company posted positive sales results in all European countries, with substantially similar trends in the different markets, and sales growth in both the mono-brand and multi-brand channels.
North American market posted revenue growth of 9.4 percent at 83.6 million euros (95.3 million dollars) confirming the positive trend in North America. Greater China witnessed strong growth of 34.6 percent, with revenues reaching 18.4 million euros (20.9 million dollars). Rest of the World revenues rose by 11.4 percent, with sales reaching 24.3 million euros (27.7 million dollars).
Retail channel revenues saw an increase of 21.7 percent or 121.1 million euros (138 million dollars) at June 30, 2017, with like-for-like sales growing 4 percent. At June 30, 2017, the network consisted of 91 direct boutiques, with just one opening over the past 12 months, with four stores in Moscow being converted from the wholesale mono-brand channel to the retail channel as from March 1, 2017, contributing to the expansion of the channel.
The company said, results also benefitted from the agreement – signed on March 13, 2017 for the passage to direct operations of five shop-in-shops in the Holt Renfrew luxury department stores in Canada, previously run using the wholesale formula.
Wholesale monobrand channel revenues of 17.6 million euros (20 million dollars), with like-for-like growth of 2.6 percent (with reported performance down 20.8 percent). The company said that the dynamics of the wholesale mono-brand channel were affected by two important initiatives in the first quarter 2017 relating to third party management passing to direct management of both – the company’s online boutique and the Moscow boutiques.
On a like-for-like basis, the performance reported by the wholesale mono-brand channel, Brunello Cucinelli said, was in line with that of the direct channel. The wholesale mono-brand network consisted of 32 boutiques at June 30, 2017, unchanged in the last 12 months, excluding the four conversions of boutiques to the retail channel (36 boutiques at June 30, 2016).
Wholesale multi-brand channel posted sales growth of 6.7 percent, with revenues reaching 104.6 million euros (119 million dollars).
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