Over the past year, the focus in retail has been delivering the value that customers seek. While many assume this means offering the lowest prices, Brunello Cucinelli, a brand recognized for its understated luxury and discreet pricing, is demonstrating that if consumers perceive value in your product, they will find a way to make a purchase, irrespective of the price.
According to the company’s latest earnings report, posted Monday (Jan 8), Brunello Cucinelli is not only content with its performance but also validates its executive chairman and creative director’s previous remarks in other earnings reports concerning the importance of exclusivity for the brand.
“Exclusivity and rarity will allow a company to last a century. It’s not easy, but this is what we believe in,” said Brunello Cucinelli, executive chairman and creative director of the fashion house, during the company’s earnings call in August.
Brunello Cucinelli reported revenues of €1,139.5 million, a 23.9% increase at current exchange rates compared to 2022 (up 26% at constant exchange rates). The brand has performed across all geographical areas and distribution channels.
Geographically, sales grew: Americas +20.8%, Europe +16.8%, Asia +40.4%. Revenues from distribution channels also grew: retail +30.2%, wholesale +13.4%.
The company made significant investments in 2023, totaling about €78 million. With a solid capital structure, the net debt remained at about €7 million.
The initial sell-out rates of the Spring Summer 2024 collection, following promising order intake, according to the company, suggest a favorable first half-year and reinforces the company’s growth forecast of around 10% for the full year 2024.
While the brand didn’t reveal the specific proportion of sales attributed to buy now, pay later options, it has given considerable attention to these payment solutions, prominently featuring them on each product page to encourage quicker checkouts.
A $9,900 Handmade Alpine Flowers short-sleeved OPERA sweater in cashmere feather yarn might seem a bit more attainable to the yearning consumer. Maybe.
But the emphasis on these solutions is interesting as even quiet luxury brands recognize evolving consumer spending preferences.
In fact, as reported by PYMNTS, providing installment payment or split-pay options is a strategic approach for businesses to reengage hesitant shoppers and boost sales.
A recent PYMNTS Intelligence study revealed that 68% of individuals embracing installment plans believe businesses are highly likely to sell more expensive products or services by introducing card installment plans to customers before the checkout process. This offers retailers an opportunity to recover profit margins.
Read more: Growing BNPL Demand Outpaces Merchant Response
Brunello Cucinelli expressed confidence in achieving the anticipated growth for 2024, estimated at around 10%, along with favorable margins and profits. According to the company, the launch of Spring-Summer 2024 sales, combined with a solid order intake, set a positive tone for the first half of the year. The ongoing sales campaign for the Fall-Winter 2024 collection also received positive feedback.
With that in mind, the company foresaw a balanced and solid increase in turnover of around 10% for the year 2025.
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