2024 is challenging for the luxury goods’ market. So much, in fact, that Kering issued a profit warning and LVMH ‘s first quarterly report shows a revenue decrease (-2%). Brunello Cucinelli‘s, however, is not. The group reported, for the January-March period, sales up 16.5% at current exchange rates. All geographic areas reported growth, including Asia. Cucinelli’s performance would suggest there is a two-speed luxury sector, split between brands that are slowing down and others that continue marching. The segment’s polarization is becoming more pronounced than ever before.
Is 2024 challenging? Not for Brunello
In the first quarter of 2024, Brunello Cucinelli reported an increase in revenue equal to +16.5% at current exchange rates and +17.9 percent at constant exchange rates, compared to Q1 of 2023. Net sales amounted to €309.1 million. Sales in Asia, which analysts consider key for the industry, increased 16%. “Order intake on the fall-winter 2024 collections were positive, for both men’s and women’s. This brings us to reiterate, with renewed conviction, our forecasts for the full year”, commented executive chairman and founder Brunello Cucinelli -: revenue growth around 10%. We are very confident that the search for a beautiful, well-made, exclusive and rare product, is destined to continue over time, as the market recognizes the very high value of manual and artisan work.”
And 2025 won’t be either
Cucinelli expects 10% growth during 2025 as well. Not many luxury companies have the same growth forecasts. The industry’s slowdown and difficulty period does not seem to have an impact on Brunello Cucinelli. The Solomeo-based company has long been on a growth path that seems immune to the crisis and the challenging international environment. And we can’t talk about “quiet luxury”, as it is a definition that Cucinelli does not approve of. In fact, he prefers to talk about “great manual craftsmanship, chic, luxurious, beautiful and precious products.”
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