Brunello Cucinelli, the Italian luxury brand renowned for its impeccable craftsmanship and humanistic approach to business, has outpaced expectations with impressive revenue growth in 2024. Despite the broader challenges facing the luxury sector, the brand saw a 12.4% increase in revenues at constant exchange rates, reaching €1.28 billion. This performance reflects a resilient strategy in an otherwise turbulent market, where many peers, including industry giants like LVMH and Kering, faced slower growth.
A Year of Strategic Investment and Expansion
Much of Cucinelli’s success in 2024 can be attributed to the significant investments made throughout the year. The brand allocated resources to expand its artisanal production capabilities, upgrade showrooms and boutiques, and enhance its marketing initiatives. These investments were financial and strategic, reinforcing the brand’s commitment to its “absolute luxury” ethos, and emphasising exclusivity, craftsmanship, and quality. Additionally, the headquarters in Solomeo, Italy, where the brand’s products are made, saw notable expansions, further consolidating its identity and operations.
“The year has been particularly significant for consolidating our style and philosophy, firmly anchored in the concept of ‘absolute luxury,’” said Brunello Cucinelli, the company’s founder and creative director. His philosophy, grounded in humanistic capitalism, continues to shape the brand’s operations and message, ensuring that its growth is both profitable and aligned with its core values.
North America Leads Growth
Geographically, the United States emerged as a key growth driver, accounting for nearly 38% of the brand’s total sales. The U.S. market saw a robust 17.8% increase in sales, underscoring the growing appetite for luxury goods in North America. Brunello Cucinelli’s focus on high-net-worth individuals seeking exclusivity and craftsmanship in their wardrobe resonates deeply with American consumers. The brand has identified further potential in the region, particularly in catering to the demand for luxury garments that combine both uniqueness and sophistication.
Global Footprint Continues to Expand
While the U.S. took the lead, Europe and Asia also contributed significantly to Brunello Cucinelli’s growth trajectory in 2024. Europe, representing 35.7% of total sales, recorded a 6.6% increase in revenue, with particularly strong results coming from luxury resorts and tourism destinations. The brand’s ability to thrive in both metropolitan centres and high-end vacation spots illustrates its widespread appeal.
Asia, too, performed well with a 12.6% growth in sales. The region, representing 27% of total sales, continues to appreciate the brand’s emphasis on quality craftsmanship and understated luxury. Notably, Brunello Cucinelli saw positive results in key markets such as China, Japan, South Korea, and the Middle East, where a growing number of consumers are drawn to its non-logo-centric designs and exclusive offerings.
Retail and Digital Channels Propel Growth
Another significant factor in Brunello Cucinelli’s growth has been its robust retail performance, which accounts for two-thirds of its total revenue. Retail sales increased by 14% in 2024, bolstered by the brand’s selective boutique openings and enhanced digital strategies. The brand also made strides in the digital realm, launching a new AI-driven website in July that contributed to its double-digit growth in online sales.
Meanwhile, wholesale, representing roughly a third of revenue, rose by 8.8%. Brunello Cucinelli continues to rely on its wholesale partners to showcase its collections in carefully curated multi-brand spaces, ensuring the brand maintains its reputation for elegance and exclusivity.
Looking Ahead
Looking to the future, Brunello Cucinelli is optimistic about its trajectory. The company has set its sights on achieving sustainable growth of around 10% annually for 2025 and 2026, focusing on high-quality, full-price sales. Moreover, Cucinelli aims to double its 2023 turnover of €1.14 billion by 2030, a target the brand believes is achievable given its strong market positioning and investment in craftsmanship.
Brunello Cucinelli’s resilience amid the luxury slowdown reflects its ability to adapt and thrive in a complex, competitive landscape. With its unwavering commitment to quality, exclusivity, and ethical values, the brand is poised for continued success, reinforcing its standing as a leader in luxury fashion.
Written by: Lydia Kelly
Published: 24th January 2025