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Thriving Brunello Cucinelli sees 16 percent revenue growth in Asia in Q1

Brunello Cucinelli has reported impressive sales results for the first quarter of 2024, showcasing strong growth and a positive outlook for the full year.

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Net revenues at the Italian fashion house reached EUR309.1 million, marking a significant increase of +16.5 percent at current exchange rates (+17.9 percent at constant exchange rates) compared to the same period in 2023.

The brand’s success was evident across all geographical areas, with noteworthy growth in the Americas (+19.5 percent), Europe (+13.9 percent), and Asia (+16.0 percent), in part due to a shift in consumer preferences favouring ‘quiet luxury,’ marked by ultra-high quality materials, as well as perceived exclusivity and rarity.

The Asian region demonstrated its potential as a major contributor to Brunello Cucinelli’s revenues, accounting for a substantial 27.9 percent of the total for Q1.

The company highlighted growth achieved across key areas, in particular China, Japan, South Korea, and the Middle East.

Brunello Cucinelli. Source: Shutterstock

Furthermore, sales performance was robust in both retail (+15.0 percent) and wholesale (+19.0 percent) distribution channels, highlighting the brand’s ability to engage with customers through various touchpoints.

The Italian luxury fashion house’s high-end ‘Made in Italy’ craftsmanship appears to continue to resonate with consumers, resulting in a strong perception of the brand’s ‘quiet luxury’ proposition.

The positive response to the collections and the brand’s distinctive style has led to significant orders for the upcoming autumn-winter 2024 collections for both men and women, according to the company.

Source: Brunello Cucinelli

A recently released survey by Bluebell Group reflects a shift in the luxury paradigm in Asia. Quality now stands as the cornerstone of how Asian consumers value luxury, with over 70 percent of consumers in all markets agreeing that luxury is about the quality; notably China and Taiwan show high agreement rates at 94 percent and 93 percent, respectively.

A Bain report on China’s luxury goods market also noted the recent success of brands with niche positioning and more iconic product offerings, pointing to higher brand desirability and potential for longer-term investments as key differentiators.

A Brunello Cucinelli store in Sydney, Australia. Source: Shutterstock

Brunello Cucinelli, executive chairman and creative director, expressed his confidence in the brand’s trajectory: “The first quarter of this year closed with excellent sales results that perfectly reflect the favour that our collections and lifestyle are garnering all over the world.

The abundant accumulation of orders for the autumn-winter 2024 collections – both men’s and women’s – and the strongly positive nature of the comments from international journalists and major multibrands with regard to our ‘gentle luxury’ style, lead us to reiterate our expectations for the 2024 full year with renewed conviction: one of revenue growth in the region of 10 percent and a healthy and fair profit,” said Cucinelli.

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“We are very confident that the pursuit of a beautiful, well-made, exclusive and rare product is destined to continue over time, in recognition of the very high value of our manual work and craftsmanship.”

In addition to the strong sales performance, Brunello Cucinelli recently unveiled its first eyewear collection, developed in collaboration with EssilorLuxottica.