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Brunello Cucinelli H1 revenues rise 9.7 percent

By Prachi Singh

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Business

Brunello Cucinelli first half net revenues were 219.8 million euros (248.2 million dollars), up by 9.7 percent or 10.3 percent at constant exchange rates. Revenues, including other operating income, reached 220.3 million euros (248.7 million dollars), up by 9.8 percent.

Commenting on the first half results, Brunello Cucinelli, Chairman and CEO, said, “We are very pleased with the results achieved in the first half of 2016 which clearly demonstrate a balanced growth of both revenues and profits. At this point practically two-thirds into the year, we can safely predict healthy revenue and profits growth for 2016.”

Positive performance across geographies

Italian market turnover grew 6.9 percent in the first half to 39.5 million euros (44.6 million dollars), with a proportion of 18 percent of net revenues) driven by the performance in the main cities and tourist resorts. European market sales were up by 8.3 percent to 68.4 million euros (77.2 million dollars). The company said that it witnessed positive growth in the most important luxury goods streets, exclusive resorts and luxury department stores, with increases in sales in all geographical areas of Continental Europe and other countries of the European market, including Eastern Europe, Russia and the former USSR countries.

North American market reported turnover growth of 9.7 percent to 76.4 million euros (86.2 million dollars). The company also saw increase in sales both - monobrand channel and in the multibrand channel. Greater China sales were up by 15 percent to 13.7 million euros (15.4 million dollars), driven by the results of the sales of the existing network of boutiques, unchanged in the last 12 months. Both Mainland China and Hong Kong reported positive performance. Rest of the World turnover increased 17.1 percent to 21.8 million euros (24.6 million dollars).

Revenues rise across retail channels

Retail monobrand channel turnover was up by 17.4 percent to 99.6 million euros (112.5 million dollars), on the back of growth in the existing spaces, to the contribution of a limited number of openings and to the increase in sell-outs. The like-for-like performance of the direct shops network increased by 3.7 percent. The increase in revenues in the retail monobrand channel was supported by the contribution of the five new openings in 2016.

Wholesale monobrand channel sales increased 1.2 percent to 22.2 million euros (25 million dollars). The trend in revenues in the second quarter of the year was affected by the conversion of the St. Tropez boutique to the direct channel, starting from March 2016. The increase in sales on a six-monthly basis was due to the performance of the existing boutique network. The monobrand channel network at June 30, 2016 reached 122 boutiques including 86 direct monobrand boutiques, while the wholesale monobrand network remained unchanged at 36 boutiques.

Multibrand sales channel posted turnover growth of 4.8 percent to 98.1 million euros (110.9 million dollars). Normalised EBITDA of 36.8 million euros (41.5 million dollars) was up by 10.2 percent compared to 33.4 million euros (37.7 million dollars) of the EBITDA of the first six months of 2015. The trend in EBITDA, the company said, was positively affected by the development of the business, the increase in sell-outs, the growth within the same perimeter, and the evolution of the sales channel mix.

Picture:Brunello Cucinelli

Brunello Cucinelli