The reasons for Brunello Cucinelli’s good earnings performance

The markets that drove the brand's growth were Asia and the United States, the very markets that are currently proving problematic for other prestigious brands. Brunello Cucinelli's company was able to confirm its revenue forecasts for the current year. In the second quarter, Cucinelli was able to count on sales of 312 million euros (339 million dollars), higher than the forecasts of financial analysts, who were expecting 310 million euros. But what are the intrinsic values of the brand based in the medieval village of Solomeo in Umbria that underpin this good performance? There are several factors at play.

Firstly, the clothes and products offered by Cucinelli feature classic cuts and colours, reflecting the trend among premium consumers to favour pieces that represent timeless value, as opposed to ephemeral and ostentatious trends. With an ever-increasing focus on corporate ethics, customers have confirmed their confidence in a brand that has made sustainability and 'humanist capitalism' its motto from the outset.

Secondly, the verticalisation of production. In the spring of this year, Brunello Cucinelli signed the acquisition of the Sartoria Egubina factory, also in Umbria, to boost the brand's production capacity, while taking care to protect and enhance local employment. The 24% increase in sales forecast for 2023 has made this major operation possible.

Thirdly, Cucinelli's positioning at the very top end of the market protects it from the ups and downs of the luxury goods world in recent times. It is above all the brands that represent a target for 'aspirational buyers' that are suffering, as the economic crisis has hit this type of customer particularly hard. These are consumers with a varied profile who are seduced by the world of luxury, buying on average one property a year worth between €3,000 and €10,000, many of them represented by the Asian middle classes. Brunello Cucinelli's customers have greater purchasing power, and are not affected by inflation or the vagaries of the economy.