Investing.com -- Italian luxury fashion group, Brunello Cucinelli, reported a record-breaking revenue of 358 million euros ($367.1 million) for the fourth quarter of 2024, marking an almost 12% year-on-year increase.
The company's full-year revenue reached €1.28 billion, a rise of over 12% compared to the previous year. The strong performance in the closing weeks of the year allowed Brunello Cucinelli to slightly exceed its recently revised sales growth expectations of 11% to 12% for 2024.
These results surpassed analyst predictions, which had forecasted a Q4 revenue of €349.5 million and an annual revenue of €1.27 billion, as per Visible Alpha estimates.
Brunello Cucinelli has managed to report growth at a time when most luxury goods companies are facing slowing sales. The firm's success is attributed to its ultra-high net worth clientele who continue to indulge in luxury shopping, despite the challenging macroeconomic environment that has impacted less affluent customers, a demographic that some of its competitors cater to.
The company reported growth across all markets, including China, a region where most luxury brands are struggling with decreased demand due to economic challenges and a resultant cutback on luxury purchases by Chinese consumers.
The company noted that turnover increased for all quarters of the year, with particularly positive results in the latter part of the year. The group, set to release full results for 2024 on March 13, predicts strong profits stemming from the positive sales performance.
Brunello Cucinelli has also maintained its sales growth projections for 2025 and 2026 at around 10%, which would result in a doubling of sales by the end of the decade compared to its 2023 figure.
The company, buoyed by the promising prospects across all geographical areas and distribution channels, invested around €108 million in 2024 in its commercial, digital, manufacturing, and logistics areas.
It plans to double the size of its Solomeo headquarters and open new manufacturing facilities in Italy, demonstrating its confidence in the future.
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