BRUNELLO CUCINELLI S.P.A. -
Net revenues €414.0 million, +16.3% at current exchange rates compared to 31 December 2014;
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Sales increased by 19.4% in the international markets and by 3.7% in the Italian market;
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Very positive sales trend in all international markets: North America +27.5%, Europe
+10.4%, Greater China +23.4%, Rest of the World +18.2%;
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Positive sales trend in all distribution channels: retail monobrand +30.0%, wholesale monobrand +8.1%, wholesale multibrand +6.3%;
- Net debt of approximately €56 million at 31 December 2015, consistent with the seasonality of the business and the investments made over the past 12 months (approximately €40 million) on completion of the major 2013-2015 three-year plan worth
«2015 has come to an end reporting "excellent" results in terms of revenues growth and, considering the quality of our sales, we are prone to believe that the same will also feature in profits. The image enjoyed by the brand worldwide is also excellent; the Winter 2015 sell-out rate has been very positive and the Spring-Summer 2016 collection sales are off to a really good start.»
«We still perceive a powerful demand for very high-end apparel, expressing the Italian way of "dressing well" and made with the intention of embodying the great values upon which we have built our business. In the light of these considerations, we envisage a "very positive" 2016 with double-digit growth.»
«The Italian menswear fashion week starts tomorrow and we consider it the most important prime trade fair in the world. We will attend it with renewed spirit and enthusiasm thanks to the young people working with us, an inexhaustible source of new ideas and inspiration. Moreover, we are once again proud to represent an appreciated, beloved and sought-after country - as Italy is today, we are firmly convinced of it - to an audience comprising industry experts, clients, buyers and journalists from all over the world.»
Solomeo, 11 January 2016 - The Board of Directors of Brunello Cucinelli S.p.A. - an Italianmaison operating in the luxury goods sector, listed on the Borsa Italiana Electronic Stock Exchange (MTA) - today examined and approved the Company's preliminary net revenues for 2015 and its net debt at 31 December 2015. The final figures for the year ended 31 December 2015 will be examined and approved by the Board of Directors at its meeting scheduled for 10 March 2016.
Trends in sales confirm and support "gracious" and "sustainable" long-term growth, the Company's declared objective, thanks to the solidity of the business model and the allure and modernity of a brand positioned at the top end of the luxury segment.
Strong as ever the Company's cornerstones and foundations: the absolute quality of the raw materials, the excellence of the craftwork and manual skills, an exclusive prêt-à-porter proposal and a contemporary lifestyle, the symbol of a genuine Made in Italy creation.
The Company's results are fostered and supported by a close-knit sharing of values between the founder, collaborators and stakeholders: values speaking of "dignity, tolerance and humanity" which complement each other and make the business strategy sustainable.
Collaborators at all levels therefore feel themselves to be the "custodian, guardian and defender" of the Company's ideals, aware that they are handing these down to the "new generations"; at the same time these matters also become key for the end customer, who is especially concerned about ethical issues and the craft-based process used to produce goods.
Sales Performance and Revenues by Geographical Area
The Group posted net revenues of €414.0 million in the year ended 31 December 2015, an increase of 16.3% over the figure of €355.9 million posted at 31 December 2014 representing sales growth of 9.5% at constant exchange rates.
The exclusivity and excellence of the offer, which has always characterized the collections, leads and supports the results with significant sales increases being achieved in the world's leading capitals and resorts which benefited from tourist flows but also from purchases made by local customers.
The international markets represented 82.9% of total net revenues, rising by 19.4%, growth that was accompanied by the very interesting and positive results obtained on the Italian market (17.1% of net revenues) where sales increased by 3.7%.
In 2015 the European market, including Italy, accounted for 48.2% of the total.
North American market - revenues rose by 27.5% (€156.6 million compared to €122.9 million in 2014), representing 37.8% of the total (34.5% at 31 December 2014).
The increase in sales, which posted an excellent performance in all the distribution channels, monobrand and multibrand, was driven by the growing demands of the local customer and sophisticated tourist, and positively affected by the exchange rate trend.
Turnover growth in the retail monobrand channel was supported by the sell-out at existing boutiques, which reported rising like-for-like results, and by the contribution arriving from the selected openings in 2015.
The performance of the multibrand channel was led by the increase in sales achieved in the exclusive and prestigious spaces in the most important Luxury Department Stores, increasingly geared towards satisfying the needs of top-end customers seeking "unique and exclusive" products.
There were 22 boutiques in the monobrand network at 31 December 2015 (18 at 31 December
2014).
European market - revenues rose by 10.4% (€128.8 million compared to €116.7 million at 31 December 2014), representing 31.1% of sales1(32.8% at 31 December 2014).
The year that has just closed was characterized by several effects, including rising tourist flows, from which the leading European capitals and major resorts benefited, the consistency of local demand and an increasing demand for exclusive craftwork products.
Solid results achieved in all the countries of the European market, including those in Eastern Europe, Russia and the former USSR countries.
Sell-outs at existing boutiques confirmed the positive figures; an increase in the like-for-like performance of existing boutiques together with the contribution made by the new and exclusive openings of direct monobrand stores helped achieve the 2015 results.
Sales in the multibrand channel rose, with the brand being present in boutiques and prestigious, selected sales spaces.
The direct network consisted of 27 boutiques at 31 December 2015 (22 at 31 December 2014), while the wholesale monobrand network consisted of 18 boutiques (19 at 31 December 2014).
Greater China - sales of €25.7 million in the year ended 31 December 2015 (representing 6.2% of total revenues), a rise of 23.4% over sales of € 20.9 million in 2014 (5.9% of revenues).
Sell-outs in the existing boutique network increased, with important growth in like-for-like performance in the direct channel, and very positive results achieved in the sales of the new 2016 spring-summer collection.
The revenues trend shows a significant appreciation by wealthy and refined Asian customers for our offering of products featuring high quality, craftsmanship, manual work and above all exclusivity, in a word, that Made in Italy that keeps charming them.
There were 19 monobrand boutiques in the network at 31 December 2015 (unchanged from 31 December 2014).
Rest of the World - turnover grew by 18.2%, or €31.9 million, in the year ended 31 December 2015 (€27.0 million at 31 December 2014), representing 7.7% of the total (7.6% in 2014).
Growth was supported by the good performance of sales in existing boutiques, the new openings and the conversion of the business in Japan to directly operated on 1 September 20142, which had a positive impact on growth, especially in the first half of the year, with the trend gradually normalizing in the second half.
There were 14 monobrand boutiques at 31 December 2015 (11 at 31 December 2014).
Excluding Italy.
On 1 September 2014 the 3 wholesale monobrand boutiques in Japan were converted to directly operated stores and the 13 sales points in the most important Luxury Department Stores passed from wholesale multibrand to the retail channel.
Italian market - Significant growth of 3.7%, with turnover reaching €71.0 million (17.1% of net revenues), compared to €68.5 million in the year ended 31 December 2014 (19.2% of the total).
Performance was consistent in the leading cities and resorts, in both monobrand and multibrand boutiques, thanks in particular to the constant flow of top-end international tourists attracted by prestigious goods, their beauty and the excellence of Italy as a whole.
Like-for-like growth in existing boutiques was positive. This benefited not only from tourist flows but also from the consistency of local customer demand; figures were very interesting for the initial sell-out of the 2016 spring-summer collection, and this earned very favorable opinions from the multibrand stores and the specialist press.
There were 17 boutiques in the monobrand network at 31 December 2015, of which 11 directly operated and 6 wholesale monobrand (16 boutiques in the monobrand network at 31 December 2014, of which 12 directly operated and 4 wholesale monobrand).
Revenues by Distribution Channel
Significant results were achieved in all distribution channels in 2015 thanks to sales realized in existing spaces and the contribution made by new selected spaces.
Retail monobrand channel - turnover rose by 30.0% (€193.0 million compared to €148.5 million in 2014), representing 46.6% of the total (41.7% at 31 December 2014).
The highly positive sales trend in the direct channel continued thanks to the results achieved by the existing network and the contribution made by new openings.
Like-for-like posted a significant increase of 5.4%, with very interesting results for the 2015 autumn-winter collection and the start of the 2016 spring-summer collection, which has already received very appreciative comments from the specialized press and the multibrand stores.
The results achieved are representative of the Company's exclusive positioning at the top-end of the luxury sector, benefiting from the demand increase of most sophisticated customers.
The direct monobrand network consisted of 81 boutiques at 31 December 2015 (71 at 31 December 2014), with 12 openings and the conversion of 2 boutiques in second-tier localities in the domestic market from the direct monobrand channel to the wholesale monobrand channel in September 2015.
Wholesale monobrand channel - revenue performance was positive at €33.4 million (8.1% of the total for the year ended 31 December 2015), an increase of 8.1% over 31 December 2014 (8.7% of the total).
The results were mainly driven by the performance of existing boutiques, with the two net openings having a positive impact; the network consisted of 36 boutiques at 31 December 2015 (34 at 31 December 2014).
