Italian luxury label Brunello Cucinelli is on track to surpass a billion euros in sales thanks to strong market demand in the U.S. market and the “logoless” luxury trend in China.
The projections come on the heels of a strong performance in 2022 when the company registered €919.5 million in sales compared to the year before, a 28% increase over the year before. In 2023, the company expects its sales to grow by 12% and by another 10% in the following year, which will put it ahead of its 10-year plan to double its revenue between 2019 and 2028.
Last year, the company benefited from an increase in demand in the Americas, where new store openings and strong wholesale demand drew growth by 40.5%. Europe, meanwhile, saw a 20.8% increase in growth as countries reopened their borders to international tourists. And in the East Asian market, the company saw a 28.1% increase in sales, driven by demand for logoless clothing.
Overall, the company saw its wholesale channel grow by 18.4%, and its direct retail channel grow by 36.6%, Vogue Business reported.
Some of the decisions the company made during the course of the pandemic also continued to pay off, including not laying off employees and offering them the same salaries as in 2019, avoiding asking for discounts from business partners and maintaining strong inventory levels, among other things.
“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 company said. “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.”
Photo credit: Brunello Cucinelli